SOURCE: Komax Holding AG

August 24, 2010 01:18 ET

Komax Group: Business in the first half of 2010

DIERIKON-LU, SWITZERLAND--(Marketwire - August 24, 2010) -

Komax Holding AG / Komax Group: Business in the first half of 2010 processed and transmitted by Hugin AS. The issuer is solely responsible for the content of this announcement.

Convincing first half

The Komax Group substantially improved sales and new orders in the first six months of 2010. First-half sales came in at CHF 157.7 million (previous year: CHF 103.0 million). New orders more than doubled to CHF 168.5 million (previous year: CHF 82.7 million). Following the previous year's loss, the business staged a clear return to profit.

A rapid revival of business in the Wire segment enabled the Komax Group to return to profit. Driven by a strong recovery in the automotive industry, but also other markets, Komax achieved a net profit of CHF 8.6 million in the first half of 2010. This compares with a loss of CHF -11.0 million in the previous year. At EBIT level, a profit of CHF 12.3 million was achieved (previous year: loss of CHF -13.0 million). First-half sales rose to CHF 157.3 million (previous year: CHF 103.0 million), an increase of 53 percent. Owing to the weak euro as at 30 June 2010, the overall currency impact at sales level was a negative 2.9 percent and at EBIT level a negative 0.7 percent.

New orders more than doubled year-on-year from CHF 82.7 million (previous year) to CHF 168.5 million.

Market situation

The economic environment brightened in the first half of 2010 and market volatility declined significantly. The best performer was the Asia region with a rise of more than 200 percent. On a combined basis, North and South America exhibited growth in sales of around 60 percent. By contrast, growth in the Europe region was on the low side at around 5 percent - though at a high level. There are increasing signs that customers' quality demands have risen further, particularly in the automotive industry.

Sales in the Wire segment soared by around 110 percent to CHF 85.1 million (previous year: CHF 40.0 million). Accordingly, EBIT at segment level showed a disproportionately strong improvement to CHF 19.0 million (previous year: CHF -4.9 million). The recovery in the Wire segment is broad-based in geographical terms, with all markets showing gains. At product level, Komax benefited in particular from its strong innovative edge as the market leader, and from its ability to process orders with very short lead times.

The Solar business unit also posted gains. Komax benefited in particular from Asian demand for crystalline technology and the new Stringer X2. Sales in the Solar segment increased by 26 percent to CHF 28.3 million (previous year: CHF 22.5 million). Although lower silicon prices benefited the crystalline technology business, this development was negative for the thin-film business. In this area, Komax announced in June that it would be bundling its resources in York, USA. Although a pleasing EBIT was achieved in the crystalline business, the substantial loss in the thin-film business led to a loss for the Solar business unit overall. This amounted at EBIT level to CHF -3.3 million (previous year: CHF -3.4 million).

The Medtech segment was able to process a larger volume of orders. Here, too, business from Asia showed the biggest increase. First-half sales increased by 15 percent to CHF 45.0 million (previous year: CHF 39.0 million). At EBIT level, an operating profit of CHF 0.8 million was achieved (previous year: CHF 0.7 million). The potential for margins at Medtech therefore remains fairly limited; this is attributable to the business's limited opportunities for standardization.

Outlook

Owing to continued strong growth in new orders, the Komax Group expects a good second half.

In the Wire segment, Komax anticipates stabilization at a high level. Having been extremely reticent last year, customers in the automotive sector in particular are now intensifying their investment activities.

At Komax Solar, the strong growth in new orders - in particular from Asia - continues. However, the costs incurred by the restructuring process implemented in the thin-film business mean it is still too early to expect a positive operating profit in the Solar segment, despite the pleasing business performance and healthy profitability of the crystalline area.

In the Medtech segment, new orders received in the second quarter did not fully meet expectations. For the year as a whole, Komax anticipates a positive operating result in this business.


The complete consolidated half-year financial statements of the Komax Group, which were prepared in accordance with the International Financial Reporting Standards (IFRSs), in particular IAS 34, "Interim Financial Reporting", can be downloaded from www.komaxgroup.com.


Financial calendar

Preview of results for 2010: 18 January 2011

Annual press conference / analysts' presentation, 2011 financial results, Swiss Exchange Zürich: 22 March 2011

Annual General Meeting, Culture and Convention Centre Lucerne: 5 May 2011

Shareholders' Letter / 2011 half-year results: 23 August 2011


Brief profile of the Komax Group: Global leader in wire-processing, with a strong focus on photovoltaics and medical technology

Komax is world leader in the wire processing market (crimp-to-crimp machines) with market share of around 40 percent. In addition to this, Komax's product and service portfolio ranges from wire cutting and stripping machines all the way to systems for the fully automated manufacture of complete wire harnesses.

In the solar field, Komax is a worldwide supplier of machines for producing crystalline and thin-film modules. Continuous innovation has enabled Komax to expand its product portfolio significantly in recent years. Today, the company covers the entire spectrum from individual processes such as stringing through to integration of entire production lines. Its aim is to extend its global leadership in stringing to the other areas of its product portfolio.

In the medical technology sector, Komax's products include machine systems for manufacturing inhalers and insulin delivery or injection systems. In this field, too, Komax is among the world's leading suppliers.

The Komax Group operates production facilities in Switzerland, France, the United States, Malaysia and China. Finally, Komax offers professional service back-up in over 50 countries. The Group generated sales of CHF 211.5 million in 2009. For the first time in its corporate history, Komax suffered a loss in 2009. As at 31 December 2009, Komax employed a workforce of around 1,000 worldwide.


Key figures of the Komax Group

+----------------------------+------------+------------+---------+
| Consolidated balance sheet |  30.6.2010 | 31.12.2009 |  Change |
+----------------------------+------------+------------+---------+
|                            |  CHF 1,000 |  CHF 1,000 |       % |
+----------------------------+------------+------------+---------+
| Current assets             |    211,063 |    176,668 |    19.5 |
+----------------------------+------------+------------+---------+
| Non-current assets         |    109,342 |    114,187 |    -4.2 |
+----------------------------+------------+------------+---------+
| Total assets               |    320,405 |    290,855 |    10.2 |
+----------------------------+------------+------------+---------+
| Current liabilities        |     62,547 |     44,901 |    39.3 |
+----------------------------+------------+------------+---------+
| Non-current liabilities    |     48,621 |     46,055 |     5.6 |
+----------------------------+------------+------------+---------+
| Shareholders' equity       |    209,237 |    199,899 |     4.7 |
+----------------------------+------------+------------+---------+

+--------------------------------+---------------+---------------+--------+
|Consolidated income statement   |1(st) half 2010|1(st) half 2009|  Change|
+--------------------------------+---------------+---------------+--------+
|                                |      CHF 1,000|      CHF 1,000|       %|
+--------------------------------+---------------+---------------+--------+
|Order intake                    |        168,496|         82,688|   103.8|
+--------------------------------+---------------+---------------+--------+
|Net sales                       |        157,288|         99,767|    57.7|
+--------------------------------+---------------+---------------+--------+
|Other operating income          |            392|          3,264|   -88.0|
+--------------------------------+---------------+---------------+--------+
|Gross profit                    |         84,149|         60,298|    39.6|
+--------------------------------+---------------+---------------+--------+
|Operating profit / loss (EBDIT) |         15,963|         -9,003|   277.3|
+--------------------------------+---------------+---------------+--------+
|Operating profit / loss (EBIT)  |         12,260|        -12,990|   194.4|
+--------------------------------+---------------+---------------+--------+
|Financial result                |           -994|           -793|   -25.3|
+--------------------------------+---------------+---------------+--------+
|Group profit / loss after taxes (EAT)      8,563|        -11,001|   177.8|
+--------------------------------+---------------+---------------+--------+

+------------------------------------+------------+-----------+-----------+
| Operating Segments                 |       Wire |     Solar |   Medtech |
+------------------------------------+------------+-----------+-----------+
| First half 2010                    |  CHF 1,000 | CHF 1,000 | CHF 1,000 |
+------------------------------------+------------+-----------+-----------+
| Order income                       |    102,523 |    30,088 |    35,885 |
+------------------------------------+------------+-----------+-----------+
| Revenues from external customers   |     84,263 |    28,148 |    44,787 |
+------------------------------------+------------+-----------+-----------+
| EBIT                               |     19,011 |    -3,296 |       746 |
+------------------------------------+------------+-----------+-----------+
| First half 2009                    |            |           |           |
+------------------------------------+------------+-----------+-----------+
| Order income                       |     32,809 |    15,078 |    34,801 |
+------------------------------------+------------+-----------+-----------+
| Revenues from external customers   |     39,805 |    21,317 |    38,636 |
+------------------------------------+------------+-----------+-----------+
| EBIT                               |     -4,881 |    -3,424 |       707 |
+------------------------------------+------------+-----------+-----------+


+---------------------------------+---------------+---------------+-------+
|Consolidated cash flow statement |1(st) half 2010|1(st) half 2009| Change|
+---------------------------------+---------------+---------------+-------+
|                                 |      CHF 1,000|      CHF 1,000|      %|
+---------------------------------+---------------+---------------+-------+
|Cash flow from operating activities        -2,301|        -13,171|   82.5|
+---------------------------------+---------------+---------------+-------+
|Cash flow from investing activities          -703|         -9,443|   92.6|
+---------------------------------+---------------+---------------+-------+
|Free cash flow                   |         -3,004|        -22,614|   86.7|
+---------------------------------+---------------+---------------+-------+
|Cash flow from financing activities         2,257|          7,860|  -71.3|
+---------------------------------+---------------+---------------+-------+
|Dividend paid(1))                |              0|         -6,639|  100.0|
+---------------------------------+---------------+---------------+-------+
|Increase (+) / Decrease (-) in funds       -1,568|        -13,825|  -88.7|
+---------------------------------+---------------+---------------+-------+


Funds = cash and cash equivalents (including time deposits with a term of up to three months)

(1) Dividends of CHF 2.00 per share paid in May 2009

+-------------------------------------------+---------+---------+---------+
|Key figures                                |         |     2010|     2009|
+-------------------------------------------+---------+---------+---------+
|Net indebtedness (-) / Net assets (+)      |CHF 1,000|   -9,041|   -6,270|
|30.06.2010 / 31.12.2009                    |         |         |         |
+-------------------------------------------+---------+---------+---------+
|Gross profit 1(st) half in % of net sales  |        %|     53.5|     60.4|
+-------------------------------------------+---------+---------+---------+
|Cash flow (EBDIT) 1(st) half in % of net sales      %|     10.1|     -9.0|
+-------------------------------------------+---------+---------+---------+
|Operating loss / profit (EBIT) 1(st) half in %      %|      7.8|    -13.0|
|of net sales                               |         |         |         |
+-------------------------------------------+---------+---------+---------+
|Group loss / profit (EAT) 1(st) half in % of net    %|      5.4|    -11.0|
|sales                                      |         |         |         |
+-------------------------------------------+---------+---------+---------+
|Headcount as of 30.06.2010 / 31.12.2009    |      No.|    1,030|      987|
+-------------------------------------------+---------+---------+---------+

The complete financial statements for the first half 2010 can be downloaded from the Internet at www.komaxgroup.com or ordered by phone.


Contact:
Komax Holding AG
Direct dial +41 41 455 06 16

Dominik Slappnig, Investor Relations and Corporate Communication
Fax +41 41 450 10 24
www.komaxgroup.com
dominik.slappnig@komaxgroup.com

The media release can be downloaded from the following link:


[HUG#1439685]

--- End of Message ---

Komax Holding AG

Industriestrasse 6 Dierikon-LU Switzerland

WKN: 1070215 ;ISIN: CH0010702154;

Media release (PDF):

http://hugin.info/100418/R/1439685/384021.pdf


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