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Micronas once again posts profit for first quarter of 2011
- Net sales of CHF 41.4 million
- EBIT margin of 13.7 percent
- Positive cash flow from operating activities
- Sales of CHF 82 million are now expected for the first half of 2011, CHF 79 million attributable to the Automotive division, and an EBIT margin of 10 percent is confirmed
The consolidated net sales for the Micronas Group (Automotive and Consumer) amounted to CHF 41.4 million for the first quarter of 2011 (CHF 45.1 million for the fourth quarter of 2010). Micronas Group's operating profit (EBIT) reached CHF 5.7 million in the first quarter (CHF 8.7 million in the fourth quarter of 2010), equalling an EBIT margin of 13.7 percent of sales.
After taking financial income and expenses as well as taxes into account, the Micronas Group posted a profit of CHF 5.3 million after a one-time exceptional item had led to a loss of CHF 8.9 million in the fourth quarter of 2010. Earnings per share for the first quarter of 2011 amounted to CHF 0.18. As at March 25, 2011, Micronas held cash and cash equivalents of CHF 171.9 million compared to CHF 165.4 million as at December 31, 2010. Shareholders' equity improved by CHF 2.8 million to CHF 125.5 million, resulting in an equity ratio of 43 percent.
Automotive sales dropped slightly quarter-on-quarter by 2.7 percent to CHF 39.8 million. The operating profit (EBIT) amounted to CHF 5.0 million (CHF 7.3 million in the fourth quarter of 2010).
The impact of the Japanese earthquake on the business operations of Micronas is difficult to forecast. We are in permanent contact with our colleagues in Japan and our sales channels and continuously assess all developments. The supply of production materials and spare parts to the Micronas factories is secured for at least another three months. At the moment we expect existing orders of CHF 3 million to be postponed from the second quarter into the third quarter. Orders for the second half of the year that were expected towards the end of the first quarter only came in, at a slightly lower volume, at the beginning of the second quarter.
In line with earlier communications, we expect low sales volumes for dashboard controllers in the course of the year. The book-to-bill ratio for the entire Automotive division was 0.71.
In the first quarter of 2011, sales of Consumer products still contributed CHF 1.6 million resulting in an operating profit (EBIT) of CHF 0.7 million.
First quarter manufacturing capacity utilization levels in Freiburg were unchanged at 75 percent. Some parts of the production in Freiburg are still working shortened hours. The expansion of the research, marketing and sales teams is being continued.
In April 2011, Micronas GmbH, Freiburg purchased the previously rented buildings and land and is now the exclusive owner of the premises in Freiburg. This will help to reduce costs and thus make a sustainable contribution to the improvement of the operating results.
Due to the expected postponement of orders the Board of Directors and Management now forecast Group sales of CHF 82 million for the first half of 2011, of which the Automotive division is expected to contribute CHF 79 million. The EBIT margin for the first half of 2011 is expected to remain at around 10 percent as previously guided.
The ordinary Shareholders' Meeting of March 22, 2011 approved all motions of the Board of Directors. Heinrich W. Kreutzer, Lucas Grolimund, Dieter G. Seipler and Stefan Wolf were re-elected as members of the Board of Directors for a term of office of one year ending with the next ordinary Shareholders' Meeting.
This press release contains forward-looking statements, such as projections, forecasts and estimates. Such forward-looking statements are dependent on certain risks and uncertainties which may cause actual results, performance or events to differ materially from those anticipated in this press release. The forward-looking statements contained in this press release are based on Micronas' views and assumptions as of this date and Micronas does not assume any obligation to update or revise this press release. This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities in any jurisdiction.
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