Mikron with drop in demand from the automotive industry and good performance in pharmaceutical and medical technology Donnerstag, 23. Juli 2020 - 07:00

Media release on semiannual results 2020

Biel, July 23, 2020, 7:00 a.m. – For the Mikron Group, the first half of 2020 was characterized by a very low order intake from the automotive industry. The outbreak of the corona pandemic aggravat­ed the situation. The massive drop in demand particularly affected the machine manufacturing of the Mikron Machining Solutions business segment and the Berlin site of Mikron Automation. Mikron has initiated a restructuring program for the machine manufacturing business with a significant reduction in capacity. In the Automation business segment, Mikron divested its two sites in Berlin and Kaunas, which serve the automotive industry exclusively, on July 1, 2020. The continuing good results of the Mikron Automation business segment's sites, which are mainly active in pharmaceutical and medical technology, are encouraging. The Mikron Group's sales declined by 31.4% to CHF 121.3 million in the first half of 2020. EBIT before restructuring costs fell to CHF -5.7 million (first half of 2019: CHF 7.5 million).

At CHF 125.7 million, the Mikron Group's order intake for the first half of 2020 is well below the corresponding figure for the first half of 2019 (CHF 163.9 million). The order backlog stands at CHF 155.0 million (June 30, 2019: CHF 183.3 million, -15.4%), while sales declined from CHF 176.8 million in the first half of 2019 to CHF 121.3 million (-31.4%).

With a 50% share of sales, Europe (including Switzerland) remained the Mikron Group's principal sales market in the first half of 2020. Sales here fell by 39% compared with the first half of 2019. Sales in the USA rose by 9% com­pared with the first half of 2019, while sales in Asia fell by 52%.

Due to the significant drop in sales in the Mikron Machining Solutions busi­ness segment and the lack of volume at the Ber­lin site in the Mikron Automation business seg­ment, the Group's EBIT (before restructuring costs) of CHF -5.7 million in the first half of 2020 was significantly lower than in the first half of 2019 (CHF 7.5 million). The Automation business segment, whose results are strongly negatively impacted by the Berlin site, posted EBIT (before restructuring costs) of CHF 2.9 mil­lion (first half of 2019: CHF 6.4 million). EBIT before restructuring costs for the Mikron Ma­chining Solutions business segment, at CHF -9.0 million, was also well below the corre­sponding prior-year figure (first half of 2019: CHF 1.7 million). After restructuring costs of CHF 15.9 million, which include the sale of the Berlin and Kaunas sites and capacity adjustments in Agno and Rottweil, Group EBIT stands at CHF -21.6 mil­lion. Loss for the first half of 2020 is CHF -24.0 million (profit for first half of 2019: CHF 4.7 mil­lion).

Outlook

A forecast for the second half of the year is very difficult to make due to the unpredictable de­velopment of the corona pandemic, the gener­al uncertainty in the automotive industry and in view of general political risks. Mikron expects business in the pharmaceutical and medtech industries market segment to remain good. However, Mikron does not anticipate a rapid recovery in demand from the automotive in­dustry, with the result that the second half of the year is also expected to show an EBIT loss on a par with the first half (before restructuring costs). The expected restructuring costs have been fully recognized in the half-year financial statements, so that the second half of the year will not be affected.

Key Figures for the Mikron Group in the first half year 2020

1) Except number of employees and equity ratio

2) Alternative performance measures, see Mikron semiannual report 2020, page 19.

Publication of semiannual results for 2020

The semiannual results will be published at the same time as this media release in the form of the 2020 Semiannual Report: www.mikron.com/reports