12 December2019

Mikron confirms sales and EBIT forecasts for 2019, but expects higher tax expense

Mikron confirms sales and EBIT forecasts for 2019, but expects higher tax expense

Biel, December 12, 2019, 7:00 a.m. - The Mikron Group continues to expect higher sales for 2019 as a whole than for 2018 and EBIT at the previous year's level. Negative tax effects, however, will significantly reduce profit after taxes in 2019.

 

While the Mikron Automation business segment confirms the positive business development, the Mikron Machining Solutions business segment - as already communicated - is significantly affected by the lower demand from the automotive industry. The very different operating results of the individual companies at EBIT level will lead to a higher tax rate at Group level in the 2019 annual financial statements. Since the Mikron Group does not anticipate a short-term recovery in the automotive industry and in the operating results of the companies concerned, the capitalized tax loss carryforwards may also have to be partially written down in the 2019 financial statements. Overall, these tax effects will significantly reduce profit after taxes compared with the previous year.  

Media release (PDF) - (PDF, 65 KB) a

19 November2019

Mikron reduces Machining capacity at Agno site

Mikron reduces Machining capacity at Agno site

Biel, November 19, 2019, 7 a.m. – The Mikron Group is reacting to declining demand for machines from the automotive industry and is making selective adjustments to its headcount in the Mikron Machining division at the Agno site. The measure does not affect innovation projects and the Mikron Machining division’s service business. The two other divisions – Mikron Tool and Mikron Automation – are also not affected. The Group is therefore expecting sales for the 2019 financial year to be higher than in 2018 with EBIT remaining at the same level as in 2018.

 

The Mikron Group is reacting to declining demand for machines from the automotive industry in particular and is reducing capacity in the Mikron Machining division at the Agno site. A 15% reduction in working hours was already introduced there on November 1. As management does not anticipate any early recovery in demand from the automotive sector, Mikron is obliged to reduce its headcount at Mikron SA Agno from the current 370. Unfortunately, this means that around 25 jobs will be cut. Mikron is endeavoring to implement them in a socially acceptable way. Over the past five years, the good order intake enabled Mikron to steadily increase headcount at the Mikron Machining and Mikron Tool divisions in Agno (Mikron SA Agno and Mikron Tool SA Agno) to the current level of just over 500 employees.

 

The market launch and industrialization of the new MultiX machine platform, which won the first innovation prize in the machine tools category at the world’s largest machine tool fair EMO 2019, and the expansion of the service business will be continued as planned without any reductions. At the same time, the machine portfolio will be gradually optimized, additional investments will be made in infrastructure and operating resources for proprietary manufacturing, and the organization will be subsequently geared to using fewer types of machines.

 

The Mikron Tool and Mikron Automation divisions are not affected by this reorientation. Mikron Tool is continuing to expand at the Agno site, and the Automation segment can confirm the encouraging business trend of the first half. Overall, the Mikron Group expects sales for 2019 as a whole to be higher than in 2018 and for EBIT to remain at the previous year's level.

Media release (PDF) - (PDF, 104 KB) a

25 July2019

Mikron increases sales and EBIT

Mikron increases sales and EBIT

 

Biel, July 25, 2019, 7:00 a.m. – With a high opening backlog, the Group generated a good performance in the first half of 2019. It increased sales by 14% year-on-year to CHF 176.4 million and EBIT by 25% to CHF 7.5 million. The development in the Automation business segment was particularly pleasing. The Machining Solutions business segment felt the impact of the decline in demand from the automotive industry.

 

As expected, the Mikron Group’s order intake for the first half of 2019 was lower than the record prior-year figure (CHF 187.8 million) at CHF 163.9 million. Demand from the pharmaceutical and medtech industries was more stable than that from the automotive industry. The order backlog stands at CHF 183.3 million (June 30, 2018: CHF 186.6 million, -2%), while the Mikron Group increased sales to CHF 176.8 million (first half of 2018: CHF 155.3 million, +14%). This improvement was achieved thanks to the Automation business segment, which was able to benefit from the high workload as expected.

 

Europe (including Switzerland) remained the Mikron Group’s principal sales market in the first six months of 2019, accounting for 57% of total sales. Here, the Group sales decreased by 3% compared with the first half of 2018. US sales grew by 47% year on year, while those in Asia rose by 26%.

 

Overall, the Mikron Group achieved an EBIT of CHF 7.5 million for the first half of 2019 (first half of 2018: CHF 6.0 million, +25%). The Automation business segment improved its EBIT from CHF 2.5 million in the first six months of 2018 to CHF 6.4 million in the first six months of 2019, while the Machining Solutions business segment's EBIT (CHF 1.7 million) fell short of the result for the first half of 2018 (CHF 2.7 million).

 

Net earnings for the first half of 2019 came to CHF 4.7 million (first six months of 2018:
CHF 3.8 million, +24%).

 

In the Mikron Automation business segment, highly productive automation systems were in strong demand again in the first half of 2019 – particularly in the pharmaceutical and medtech industries. Mikron Automation also made strong gains in the consumer goods segment, while order intake from the automotive industry was clearly below the prior-year figure. Overall, Mikron Automation achieved a good order intake in the first half of 2019. The business segment will therefore also see good capacity utilization in the second half of the year.

 

In the first half of 2019, the Machining Solutions business segment faced uncertainty in the global automotive industry and a sharp fall in demand from this market segment. The relatively healthy order backlog on hand at the beginning of the year enabled the business segment to keep sales on a par with the first half of 2018.

 

In the second half of the year, the Machining division will continue to work hard on establishing the new product platforms in its sales markets, despite difficult market conditions. For Mikron Tool division, the focus is on developing new markets in the pharmaceutical and medtech industries. Both of the Mikron Tool division’s production sites (Agno, Switzerland and Rottweil, Germany) were operating at full capacity again in the first half of 2019.  

 

Outlook

A forecast for the second half of the year is difficult due to the uncertainty in the automotive industry and general political risks. Mikron does not expect demand from the automotive industry to recover in short term. In the other market segments, Mikron expects demand to remain stable. Overall, the Group expects sales for 2019 as a whole to be higher than in 2018 and EBIT at the previous year's level.

 

Key figures for the Mikron Group in the first half year 2019

 

		1.1.–30.6.19		1.1.–30.6.18		+/-
CHF million*
Order intake		163.9		187.8		-12.7%
- Machining Solutions		75.2		85.4		-11.9%
- Automation		88.8		102.5		-13.4%
Net sales		176.8		155.3		13.8%
- Machining Solutions		83.6		84.0		-0.5%
- Automation		94.1		71.5		31.6%
EBIT		7.5		6.0		25.0%
Profit/Loss for the year		4.7		3.8		23.7%
Operating cash flow		-12.0		5.3		n.a.

 

		30.6.19		30.6.18		+/-
Order backlog		183.3		186.6		-1.8%
- Machining Solutions		60.8		72.5		-16.1%
- Automation		122.3		114.0		7.3%
Number of employees (FTE)		1465		1314		11.5%
- Machining Solutions		704		658		7.0%
- Automation		732		631		16.0%
		30.6.19		31.12.18		+/-
Balance sheet total		282.5		289.5		-2.4%
Equity ratio		58.6%		56.8%		1.8%

 

*except number of employees and equity ratio

Media release (PDF) - (PDF, 64 KB) a