Press release BoxID: 118864 (Mühlbauer Holding AG & Co. KGaA)
  • Mühlbauer Holding AG & Co. KGaA
  • Josef-Mühlbauer-Platz 1
  • 93426 Roding
  • Contact person
  • Tilo Rosenberger
  • +49 (9461) 952-1653

Mühlbauer draws up its balance sheet for the first half year

Sales expectations adjusted due to project situation/ medium- and long-term market environment remains favorable

(PresseBox) (Roding, ) After a slow start in the new financial year, Mühlbauer Holding AG & Co. KGaA quoted on the Prime Standard and worldwide active independent advisor and manufacturer of innovative security solutions for the TECURITY® market, is now reporting a gratifying trend in respect of order income. Although the level of order income does not match the highest comparable quarter of the previous three years, the distinct increase reflects the greater interest of the market in the solution provider.

In the quarter under review, sales of the Mühlbauer Group totaled EUR 30.7 million due to the weak start and sustained project delays and thus lagged the year-on-year result (40.3) by 23.9%. The weak start also impacted earnings development considerably; at EUR 3.9 million (8.4) earnings before interest and taxes (EBIT) were EUR 4.5 million below the year-on-year result. This corresponds to an EBIT margin of 12.6% - after 20.9% in the previous year. At EUR 5.2 million (9.0) earnings before taxes (EBT) also lagged behind the previous year’s value, even though they benefited from the extremely positive financial result of the second quarter of EUR 1.3 million (0.6). After deducting tax expenses, the net income for the period amounted to EUR 3.4 million (6.1), which corresponds to undiluted earnings per share of EUR 0.21 (0.42) for the quarter under review. In the first half year, sales of the Mühlbauer Group totaled EUR 65.1 million (77.7) and EBIT amounted to EUR 7.8 million (16.3). The company posted undiluted earnings per share for the first six months of EUR 0.37, compared to EUR 0.81 in the first half of 2006.

Due to higher investment expenses, primarily applicable to the development of the new technology sites in Malaysia and Slovakia, the free cashflow of EUR 1.2 million was EUR 2.4 million lower year-on-year (3.6). Compared with the end of the previous year the working capital increased slightly by EUR 1.4 million to EUR 46.9 million to the end of the reporting period. Due to the appropriation of earnings effected in the reporting period, shareholder’s equity declined slightly year-on-year, at 78.2% (80.1%).

Although year-on-year order income of the Mühlbauer technology group lagged 16.4%, at EUR 42.2 million, it has developed positively over the first quarter of 2007. Against the background of a further intensification of demand for technology solutions for the production of RFID Smart Labels, Mühlbauer was awarded orders worth EUR 20.9 million in its core business area SmartID. Despite this, Mühlbauer posted a year-on-year decline (26.4) – in the previous year demand for TECURITY® solutions was extraordinarily high. Semiconductor Related Products, which benefited from the maturity of innovative technology solutions for industrial image inspection, contributed EUR 12.9 million (16.3) to the order book. In contrast, the business areas Traceability and Precision Parts & Systems featured a positive increase: at EUR 3.7 million, Traceability topped the previous year’s order income (3.6), while Precision Parts & Systems climbed strongly from EUR 4.1 million in Q2 2006 to EUR 4.7 million, due to the continuous rise in demand for highly precise individual parts and systems. Over the first six months of the year, the accumulated order income totaled EUR 75.9 million (88.2) and thus lagged the previous year’s result by 13.9%, while the order backlog of EUR 86.6 million at the end of the reporting period only narrowly missed by 4.0% the highest comparable value of the previous year (90.2) in the history of the technology group.

Despite the medium- to long-term favourable market environment in the Cards & TECURITY® area, the looming extension of project lead times and the recovery of the semiconductor industry, particularly in respect of business with governments, anticipated for the beginning of the second half of the year – but not yet occurring – has resulted in an adjustment of the company’s sales forecast. On the basis of the development of sales in the first two quarters, the technology group now proceeding on the assumption that it will be able to achieve a volume of sales in respect of the entire year between EUR 150 million and EUR 160 million. As global market leader on the Cards & TECURITY® market, Mühlbauer is deeply involved in the transformation process away from conventional identification documents to new innovative ID applications in accordance with international standards and, due to its worldwide unique solution orientation, it is in a position to fully benefit long-term from the rising global demand for reliable technology and software solutions for the production of all types of Smart Cards and ePassports. Mühlbauer is also ideally positioned in the RFID area, to benefit from the intensification of the RFID technology and its resultant growth.