LUCERNE, Switzerland, Aug. 25, 2005 (PRIMEZONE) -- The first half of 2005 was a difficult period for the Komax Group. Although the Group was able to increase its sales in comparison with the first half of 2004, it saw a decline in operating profit (EBIT). Komax is expecting its result to show a marked improvement in the second half of 2005.
As already predicted in April 2005, the Komax Group's first-half result was down on the corresponding period a year ago. While sales advanced by 5.3% to CHF 119.7 million (previous year: CHF 113.7 million), operating profit (EBIT) declined by 40.4% to CHF 10 million (previous year: CHF 16.8 million). Net profit (EAT) for the first half of 2005 stands at CHF 7.5 million (previous year: CHF 13.1 million), which is equivalent to 6.3% of sales.
Margins were depressed by a combination of changes in the product mix and delays in the approval of large-scale production facilities, while operating costs were held lower than the previous year despite an increase of around CHF 1 million in development costs. Extraordinary expenses were also incurred as a result of the acquisitions of Sigma and Ismeca Automation.
Integration of Sigma and Ismeca well under way
The integration of Sigma and Ismeca is well under way. The acquisitions will enable us to continue to consolidate our market position in the field of assembly automation. It is already proving possible to exploit initial potential for synergies. For example, procurement is being coordinated more closely, and orders are being exchanged within the Group. The assembly automation business in the U.S. has also been reorganized. Komax Systems Rockford was attached to Ismeca Automation, which means that Ismeca now also has its own production capacity in the U.S. -- an important precondition for success in the U.S. market.
Decline in Europe and the U.S., growth in China
The Komax Group's sales followed different trends in the individual regions. In Europe, Komax noted a very cautious approach to investment in the wire-processing business, with many customers, particularly in the automotive industry, postponing new orders. By contrast, the order intake for assembly automation product lines (medical technology, mechanical and electronic assemblies) was very gratifying.
The standard machinery business in the U.S. was also less than satisfactory for Komax in the first half of 2005. By contrast, the systems for the assembly of solar cells manufactured by Komax Systems York enjoyed robust demand.
In Asia, demand is continuing to shift from Japan and Korea to China, and Komax made correspondingly good progress in the Chinese market among both large and small-scale customers.
At the Productronica trade fair in Munich, which is held once every two years and is the world's most important event for electronics manufacturing, Komax will once again be presenting new products in November 2005, enabling it to further strengthen its innovation and market leadership.
Outlook
Overall, the Group is expecting a better result in the second half of the year than in the first half. The standard machinery business in particular has already been showing signs of a significant revival since June. In the assembly automation product lines, new orders are still expected to be on a high level, and the earnings situation can be expected to improve. As things stand now, Komax is expecting both sales and earnings for the second half of 2005 to be higher than in the first half.
Key figures of the Komax Group
Consolidated 30.6.2005 31.12.2004 Change
balance sheet
CHF 1,000 CHF 1,000 %
Current assets 139,225 126,920 9.7
Fixed assets 119,147 100,579 18.5
Total assets 258,372 227,499 13.6
Short-term 60,350 49,857 21.0
liabilities
Long-term 31,713 18,831 68.4
liabilities
Shareholders' 166,309 158,811 4.7
equity
Total liabilities 258,372 227,499 13.6
and shareholders'
equity
Consolidated 1st half 2005 1st half 2004 Change
income statement
CHF 1,000 CHF 1,000 %
Net sales 119,711 113,679 5.3
Gross profit 68,912 69,906 -1.4
Operating profit 13,910 20,997 -33.8
(EBITDA)
Operating profit 10,009 16,791 -40.4
(EBIT)
Financial result -888 -144 516.7
Group profit after 7,531 13,053 -42.3
tax (EAT)
Consolidated cash 1st half 2005 1st half 2004 Change
flow statement
CHF 1,000 CHF 1,000 %
Net cash from 4,912 15,449 -68.2
operating activities
Net cash from -26,575 -5,016 429.8
investing activities
Free cash flow -21,663 10,433 -307.6
Net cash from 3,298 -6,070 154.3
financing activities
Par value 0 0
repayment1)
Increase (+) / -19,533 4,400 -543.9
Decrease (-) in funds
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Funds = cash and cash equivalents (including time deposits with a
term of up to three months) 1) Par value repayments of CHF 1.50 in
July 2004 and CHF 2.00 in August 2005
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Key figures 2005 2004
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Net indebtedness (-) / CHF 1,000 -11,440 15,265
Net assets (+) 30.6.2005
/ 31.12.2004
Gross profit 1st half in % of % 57.6 61.5
net sales
Cash flow (EBITDA) 1st half % 11.6 18.5
in % of net sales
Operating profit (EBIT) 1st % 8.4 14.8
half in % of net sales
Group profit (EAT) 1st half % 6.3 11.5
in % of net sales
Headcount as of 30.6.2005 / Number 862 705
31.12.2004
The complete financial statements for the first half 2005 can be downloaded from the Internet at www.komaxgroup.com or ordered by phone.
Notes to the consolidated first-half statements
In the first half of 2005, the scope of consolidation was expanded to include the companies Sigma AG, Stans, and Ismeca Automation Holding AG, La Chaux-de-Fonds.
The valuation principles set out in the 2004 Annual Report were modified as follows: under IFRS 3, goodwill can no longer be amortized as from January 1, 2005. In addition, under the provisions of IFRS 2, onward employee share ownership plans have to be entered at fair value under personnel expenses as from January 1, 2005. IFRS 2 also requires a restatement of the previous year's figures. Apart from this, no other major changes were made to the valuation principles.
The press release including tables can be downloaded from the following link: http://hugin.info/100418/R/1008331/155810.pdf