Slight rise in sales and margins in third quarter
- Sales of CHF 39 million
- Gross margin reaches 35 percent
- Manufacturing capacity utilization slightly above 80 percent
- Sales forecast for the financial year 2013 confirmed at CHF 150 million; EBIT margin expected to be in the mid-single-digit percentage range
Micronas Group's consolidated net sales increased to CHF 39.0 million in the third quarter of 2013. For the first nine months of 2013 the Company achieved sales of CHF 114.5 million, compared with CHF 130.3 million for the equivalent period of 2012. The main reason for this decline is the continuing weakness of the Japanese yen. Also, consumer products contributed to the figures last year but were discontinued at the end of 2012. The gross margin rose in the third quarter of 2013 to 35.2 percent, up from 31.8 percent in the second quarter. The gross margin for the first nine months of 2013 was 31.9 percent (equivalent period in 2012: 40.9 percent). Operating profit (EBIT) improved from CHF 2.1 million in the second quarter to CHF 3.2 million in the third. The EBIT margin for the third quarter of 2013 came to 8.2 percent. For the first three quarters of 2013 Micronas posted operating profit of CHF 5.8 million, giving an EBIT margin of 5.1 percent.
As a result, a profit after financial result and tax of CHF 2.6 million was realized in the third quarter of 2013. Profit for the first nine months of 2013 was CHF 7.1 million. Earnings per share for the first nine months came to CHF 0.24. At the end of September 2013, Micronas held cash, cash equivalents and short-term financial cash deposits of CHF 170.5 million, compared with CHF 167.4 million at end-June 2013. Shareholders' equity came to CHF 132.1 million, giving an equity ratio of 43.6 percent.
The Company's core business, the Automotive segment, increased sales to CHF 36.7 million in the third quarter of 2013, up 2.3 percent on the previous three months. Sales in the first nine months of 2013 came to CHF 108.1 million. This includes the final sales figures for several discontinued dashboard controller platforms. Operating profit (EBIT) improved by 64.7 percent compared with the previous three months to reach CHF 3.5 million for the third quarter, giving an EBIT margin of 9.5 percent. With operating profit for the first nine months of 2013 at CHF 6.3 million, the EBIT margin for this period was 5.9 percent.
The Industrial segment, reporting for the first time in the 2013 financial year, posted sales of CHF 2.3 million in the third quarter. In the first nine months of 2013, Industrial generated sales of CHF 6.5 million, an increase of 33.9 percent on the equivalent period of 2012. The Industrial segment thus contributed 5.6 percent of consolidated sales. The segment posted a small operating loss of CHF 0.3 million in the third quarter of 2013, and an operating loss of CHF 0.6 million for the first nine months of the year, compared with an operating loss of CHF 2.2 million in the equivalent period of 2012.
Micronas Group's book-to-bill ratio for the third quarter of 2013 came to 0.97, and to 1.03 for the first nine months of 2013. Average capacity utilization at the Freiburg manufacturing plant was just over 80 percent in the third quarter. In Japan, where Micronas generates around 50 percent of its Automotive sales, the exchange rate between the yen and the euro deteriorated further. Despite an increase in euro-denominated billing for Japanese customers, the weak yen continued to have a negative impact on the performance of Micronas.
Assuming a YEN-EUR rate of 132 in the fourth quarter, the Board of Directors and Management still expect to see sales of around CHF 150 million for the 2013 financial year. The EBIT margin is still expected to be in the mid-single-digit percentage range.
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.
Micronas (SIX Swiss Exchange: MASN) is known and recognized in the automotive and industrial business as a reliable global partner for intelligent, sensor-based system solutions. Micronas offers a variety of Hall sensors and embedded controllers for smart actuators for automotive and industrial applications, such as drive trains, chassis frames, engine management and convenience functions.