SWEDEN, Switzerland, April 5, 2005 (PRIMEZONE) -- The Komax Group generated sales of CHF 211.5 million in fiscal 2004. The operating cash flow margin (EBITDA margin) stood at 17%, while Group profit came in at CHF 20.4 million on a slightly improved margin. Thanks to a strong order intake in the assembly automation business, Komax is optimistic for 2005.The Komax Group achieved another good result in fiscal 2004. Despite a decline in sales revenue to CHF 211.5 million (2003: CHF 222.2 million), group profit after tax (EAT) was maintained at CHF 20.4 million, close to its prior-year level (2003: CHF 20.8 million). Furthermore, the Group even increased its net profit margin (after-tax profit as a percentage of net sales) to 9.6% (2003: 9.4%). The strategic EBITDA margin was once again on target in 2004 at 17%. In addition, the gross profit margin increased to 61.6% in the year under review (2003: 61.1%).
The Group generated a free cash flow of CHF 29.6 million in fiscal 2004 (2003: CHF 15.2 million), even with investments standing at CHF 10.6 million. Due to the high free cash flow, Komax was able to repay further financial loans to the tune of approximately CHF 10.1 million and to turn the net debt of CHF 10.4 million as at December 31, 2003 into net cash of CHF 15.3 million (as at December 31, 2004).
Sales by region
Komax can look back on a particularly gratifying advance in sales in the US. Komax USA exploited the strong demand for fully automatic crimping machines to achieve a record result, and Komax also turned in an excellent performance in Latin America.
The Komax Group likewise recorded good growth and a satisfactory result in China. Komax Shanghai, a subsidiary operating since January 2003, made a major contribution to these figures. Gaining further market share in Asia, however, calls for additional investment. The company's plans thus include expanding its presence in China.
The slight drop in overall sales -- even with the developments in the U.S. and Asia -- is attributable to turnover in Europe, which remains Komax's most important market. The fall in demand was particularly pronounced in the traditional Western European sales territories of Germany, Italy and France. More and more customers from these countries are switching production to Eastern Europe where Komax, however, has further improved its market position.
Research and development
In 2004 Komax again invested around 9% of sales revenues, or CHF 19.1 million, in research and development (2003: CHF 19.3 million). Alongside the new Komax Alpha 455 fully automatic crimping machine, the emphasis was on the Komax Zeta 633 SP and Zeta 654 splicing and assembly machines, as well as on further developing standard components and platforms. In the medium-term 80% of Komax machines and systems in assembly automation and wire-harness production are to be based on the same standard components.
Par value repayment increased
At the Annual General Meeting the Board of Directors will propose that, in lieu of a dividend distribution, the par value per registered share be reduced by CHF 2.00 from CHF 7.50 to CHF 5.50, thus reducing the company's share capital by CHF 6,362,812 in total. Shareholders will receive a repayment of CHF 2.00 per share (2003: CHF 1.50). Once the resolution has been approved by the Annual General Meeting, the statutory procedure for par value repayment will be set in motion. If the transaction goes according to plan, shares will be traded at the new par value from the beginning of August 2005.
Market overview
With a market share of more than 50%, Komax is a global leader in standard wire-processing machines. Komax also produces large-scale systems for use in assembly automation and special wire-processing tasks. Globally, such machines generate several billion Swiss francs in sales. Komax's potential in this growing but highly fragmented market is equally strong.
The Komax Group was able to kick off fiscal 2004 with a large order backlog from the previous year, bringing a related increase in first-half sales. Demand in the machine business returned to normal levels in the spring. Order intake was weak for large-scale systems in the first half of the year, but staged a marked recovery in the second half.
Turning to products, Komax can report the successful launch of the Alpha 455, a fully automatic crimping machine which both meets the highest quality standards and enables ultra-fast changeover times. The high order intake for systems for processing IDC connectors is equally pleasing, especially in the household appliances sector. The company seems to have achieved a market breakthrough in this area. The Alpha 433 and Gamma 433 fully automatic crimping machines were also in high demand, as were twisters and robots for the fully automated production of wire harnesses.
Outlook for 2005
With the launch of its new products, Komax is now extremely well equipped to further strengthen its leading position on the global market for wire processing machines in 2005. In the assembly automation sector, Komax is aiming for robust growth, both organically and by means of suitable acquisitions. Geographically, Komax sees particular potential in Asia. The Group will make additional investments in China in the current year. The large order volume in the assembly automation business in the second half of 2004 and the first few months of the year now underway make Komax optimistic about fiscal 2005. However, Komax does not expect the 2005 first-half result to be quite as strong as that achieved in the outstanding first half of 2004.
This media release and the annual report can be downloaded in German or English at www.komax.ch. Further key figures can be found in the Appendix or on the website.
An interactive version of the Annual Report 2004 is available on the following link: http://hugin.mobular.net/hugin/73/7/213/
Appendix
Key figures of the Komax Group
Consolidated income statement 2004 2003 Change
CHF 1,000 CHF 1,000 %
Net sales 211,527 222,182 -4.80
Operating cash flow (EBITDA) 35,907 37,891 -5.24
as % of net sales
17.0 17.1 --
Operating profit (EBIT) 27,345 29,311 -6.71
as % of net sales
12.9 13.2 --
Free cash flow 29,628 15,151 95.55
Group profit after taxes 20,390 20,801 -1.98
(EAT)
as % of net sales 9.6 9.4 --
Research & development 19,100 19,285 -0.96
as % of net sales
9.0 8.7 --
Consolidated balance sheet 31.12.2004 31.12.2003 Change
CHF 1,000 CHF 1,000 %
Total assets 227,499 219,992 3.41
Net indebtedness (-) / Net 15,192 -10,446 -245.43
cash (+) as at Dec. 31
Shareholders' equity 158,811 143,673 10.54
as % of total
assets 69.8 65.3 --
Headcount (as at Dec. 31)
Number 705 707 -0.28
Sales per employee 298 319 -6.58
Value added per employee 138 144 -4.17
Key share figures
Share capital as at Dec. 31 23,861 28,633
(CHF 1,000)
Number of shares as at Dec. 3,181,406 3,181,406
31 (No.)
Par value per share (CHF) 7.50 9.00
Stock market capitalization 357,590 276,941
as at Dec. 31 (CHF 1,000)
Basic earnings per share 6,46 6,60
(CHF)
P/E (price/earnings ratio) as 17,5 13,3
at Dec. 31
Dividend yield as % 1,87 1,72
Appendix
Brief profile
Komax - world leader in wire processing and assembly automation
The Komax Group, founded in 1975 and headquartered in Dierikon/Lucerne, Switzerland, is one of the top global providers of wire processing systems and assembly automation equipment.
From cutting and stripping wires to the complex, fully automated manufacture of complete wire harnesses, Komax offers its clients a comprehensive range of products. Thanks to various acquisitions in the assembly automation sector, Komax can now provide assembly and testing processes that go far beyond simple wire processing. As well as the development of customer-specific solutions, the company's service offering also includes commissioning, training, maintenance and after-sales support. The Komax Group operates production facilities in Switzerland, Portugal, France, the United States and China. It also maintains a distribution and service network spanning the entire globe. Its primary markets are the automotive industry as well as the household appliance, office equipment, telecommunications, medical technology, solar energy and IT sectors.
The Group generated sales of CHF 211.5 million in 2004. Operating profit (EBIT) stood at CHF 27.3 million and Group profit after tax at CHF 20.4 million. As at December 31, 2004, Komax employed a workforce of 705 worldwide.