.
- Number of Hall sensors sold matches level posted in strong first half of 2012
- Sales and profits impacted by unfavorable yen exchange rate
- Cost reduction measures implemented in first half of 2013
- Manufacturing capacity utilization rises steadily to around 80 percent
- Sales forecast for 2013 as a whole: CHF 150 million; percentage EBIT margin in mid-single figures
The market environment remained difficult for Micronas in the first half of 2013, mainly because of the unfavorable performance of the Japanese yen against the euro. In addition, instability continues to afflict the worldwide car market, which weakened in the fourth quarter of 2012. Despite these challenging conditions, the Micronas Group slightly exceeded the first-half sales forecast it announced in April. Micronas is market leader in Hall sensors for automotive applications, and in the first half of 2013 it announced some very promising new products for linear and multidimensional magnetic field measurements.
Consolidated net sales by the Micronas Group in the first half of 2013 came to CHF 75.5 million, which is 13.1 percent lower than in the first half of 2012. This decline is mainly due to the continuing weakness of the Japanese yen and the phasing out of our consumer products. The Company's gross margin shrank accordingly from 39.6 percent in the first half of 2012 to 30.2 percent in the first half of 2013. Cost reduction measures that had been announced when the last annual results were published were implemented during the first six months of this year, which allowed us to maintain spending on research and development, marketing, sales and administration at the prior-year level. As expected, operating profit (EBIT) was down on the same period last year at CHF 2.6 million, or 3.4 percent of sales.
After taking account of financial income and expenses, and taxes, Micronas posted a profit of CHF 4.5 million for the first six months, giving earnings per share of CHF 0.15. At the end of June 2013, Micronas held cash, cash equivalents and short-term financial cash deposits of CHF 167.4 million, compared with CHF 169.9 million at end-2012. The revised IAS 19 standard is being applied for the first time in the 2013 financial year. As a result, pension liabilities recognized in the balance sheet as at December 31, 2012, had to be shown retrospectively as CHF 29.5 million higher, and deferred tax assets had to be assessed on the difference. Consequently, shareholders' equity at December 31, 2012, was down from CHF 152.0 million to CHF 125.6 million. This figure improved slightly to CHF 130.5 million in the first half of 2013. The equity ratio rose from 42.2 percent on December 31, 2012, to 43.4 percent.
The Automotive segment, which accounts for 95 percent of the Company's turnover, generated sales of CHF 71.3 million in the first six months of the year. This fall of CHF 9.7 million compared with the first half of 2012 is, as already mentioned, due mainly to the weakness of the Japanese yen. In terms of units sold, after a weak second half of 2012 we were able to return to the strong levels seen in the first six months of last year in our core business of Hall sensors. Operating profit (EBIT) at the segment came to CHF 2.9 million, or 4 percent of sales.
The market for semiconductors for cars continues to grow more strongly than car production itself. Micronas provides customers with high quality sensor solutions in three different application fields: powertrain, which is where the greatest growth is expected in the medium term, chassis and body, and safety-related applications. By combining Hall sensors and embedded controllers, Micronas is also able to offer complete system solutions for controlling smart actuators. These cost-effective, spaceoptimized solutions for the BLDC (brushless direct current motor) market are unrivaled in terms of energy consumption and form factor.
Products in the Industrial division are being shown separately for the first time. Industrial achieved sales of CHF 4.1 million in the first six months, improving by a very healthy 32 percent on the same period last year thanks to higher sales of Hall sensors. Ongoing investment in the development and marketing of mySENS technology is having an impact on operating results. In the first half of 2013, there was an operating loss (EBIT) of CHF 0.3 million, compared with a loss of CHF 1.4 million in the first half of 2012.
After starting the year at 73 percent, capacity utilization at the Freiburg manufacturing areas rose steadily over the first half year, reaching around 80 percent by the end of June. Short-time work, which had been introduced in some areas of the Freiburg plant, was stopped in April. The global car industry traditionally demands very high standards of quality and safety. Consequently, Micronas has a quality policy built around long-term objectives and systematic planning, and directed at zero-defect quality (zero ppm) from the start. This is achieved by tailoring the quality criteria applied to development and production entirely to the specific product and customer.
"Thanks to consistent implementation of product quality standards, close collaboration with our customers and continuous innovation, Micronas is in a leading global position," says Matthias Bopp, CEO of Micronas. "However, from the current perspective, it seems unlikely that there will be a significant increase in worldwide demand for cars, or a strengthening of the Japanese yen in the second half of the year."
Based on a YEN-EUR rate of 130, the Board of Directors and Management expect to see sales of around CHF 150 million for 2013 as a whole. The EBIT margin is expected to be in the mid-single-digit percentage range.
Disclaimer
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.
- Number of Hall sensors sold matches level posted in strong first half of 2012
- Sales and profits impacted by unfavorable yen exchange rate
- Cost reduction measures implemented in first half of 2013
- Manufacturing capacity utilization rises steadily to around 80 percent
- Sales forecast for 2013 as a whole: CHF 150 million; percentage EBIT margin in mid-single figures
The market environment remained difficult for Micronas in the first half of 2013, mainly because of the unfavorable performance of the Japanese yen against the euro. In addition, instability continues to afflict the worldwide car market, which weakened in the fourth quarter of 2012. Despite these challenging conditions, the Micronas Group slightly exceeded the first-half sales forecast it announced in April. Micronas is market leader in Hall sensors for automotive applications, and in the first half of 2013 it announced some very promising new products for linear and multidimensional magnetic field measurements.
Consolidated net sales by the Micronas Group in the first half of 2013 came to CHF 75.5 million, which is 13.1 percent lower than in the first half of 2012. This decline is mainly due to the continuing weakness of the Japanese yen and the phasing out of our consumer products. The Company's gross margin shrank accordingly from 39.6 percent in the first half of 2012 to 30.2 percent in the first half of 2013. Cost reduction measures that had been announced when the last annual results were published were implemented during the first six months of this year, which allowed us to maintain spending on research and development, marketing, sales and administration at the prior-year level. As expected, operating profit (EBIT) was down on the same period last year at CHF 2.6 million, or 3.4 percent of sales.
After taking account of financial income and expenses, and taxes, Micronas posted a profit of CHF 4.5 million for the first six months, giving earnings per share of CHF 0.15. At the end of June 2013, Micronas held cash, cash equivalents and short-term financial cash deposits of CHF 167.4 million, compared with CHF 169.9 million at end-2012. The revised IAS 19 standard is being applied for the first time in the 2013 financial year. As a result, pension liabilities recognized in the balance sheet as at December 31, 2012, had to be shown retrospectively as CHF 29.5 million higher, and deferred tax assets had to be assessed on the difference. Consequently, shareholders' equity at December 31, 2012, was down from CHF 152.0 million to CHF 125.6 million. This figure improved slightly to CHF 130.5 million in the first half of 2013. The equity ratio rose from 42.2 percent on December 31, 2012, to 43.4 percent.
The Automotive segment, which accounts for 95 percent of the Company's turnover, generated sales of CHF 71.3 million in the first six months of the year. This fall of CHF 9.7 million compared with the first half of 2012 is, as already mentioned, due mainly to the weakness of the Japanese yen. In terms of units sold, after a weak second half of 2012 we were able to return to the strong levels seen in the first six months of last year in our core business of Hall sensors. Operating profit (EBIT) at the segment came to CHF 2.9 million, or 4 percent of sales.
The market for semiconductors for cars continues to grow more strongly than car production itself. Micronas provides customers with high quality sensor solutions in three different application fields: powertrain, which is where the greatest growth is expected in the medium term, chassis and body, and safety-related applications. By combining Hall sensors and embedded controllers, Micronas is also able to offer complete system solutions for controlling smart actuators. These cost-effective, spaceoptimized solutions for the BLDC (brushless direct current motor) market are unrivaled in terms of energy consumption and form factor.
Products in the Industrial division are being shown separately for the first time. Industrial achieved sales of CHF 4.1 million in the first six months, improving by a very healthy 32 percent on the same period last year thanks to higher sales of Hall sensors. Ongoing investment in the development and marketing of mySENS technology is having an impact on operating results. In the first half of 2013, there was an operating loss (EBIT) of CHF 0.3 million, compared with a loss of CHF 1.4 million in the first half of 2012.
After starting the year at 73 percent, capacity utilization at the Freiburg manufacturing areas rose steadily over the first half year, reaching around 80 percent by the end of June. Short-time work, which had been introduced in some areas of the Freiburg plant, was stopped in April. The global car industry traditionally demands very high standards of quality and safety. Consequently, Micronas has a quality policy built around long-term objectives and systematic planning, and directed at zero-defect quality (zero ppm) from the start. This is achieved by tailoring the quality criteria applied to development and production entirely to the specific product and customer.
"Thanks to consistent implementation of product quality standards, close collaboration with our customers and continuous innovation, Micronas is in a leading global position," says Matthias Bopp, CEO of Micronas. "However, from the current perspective, it seems unlikely that there will be a significant increase in worldwide demand for cars, or a strengthening of the Japanese yen in the second half of the year."
Based on a YEN-EUR rate of 130, the Board of Directors and Management expect to see sales of around CHF 150 million for 2013 as a whole. The EBIT margin is expected to be in the mid-single-digit percentage range.
Disclaimer
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.
