DIERIKON-LU, Switzerland, Jan. 24, 2005 (PRIMEZONE) -- According to the provisional figures, the Komax Group generated sales of around CHF 212 million in fiscal 2004. Although sales declined, the net profit margin is expected to be up from the prior-year level, despite the currency impact. With practically all products experiencing a strong order intake, Komax is cautiously optimistic for 2005.
The Komax Group, the world's leading supplier of wire-processing systems, experienced a strong first-half in 2004, driven by sales and profit. The Group saw performance weaken in the spring, due to lower order intake. For the year as a whole, sales fell by about 4% to stand at CHF 212 million (previous year: CHF 222 million). The negative currency effect on sales will be around 2%.
On the strength of the provisional figures, Komax anticipates a slight increase in gross margin, despite the unfavorable currency impact. Adjusted for currency translation, the net profit margin should have improved on its prior-year level. The equity ratio will continue to rise. Thanks to strong business performance and a high free cash flow, there was a turnaround from net debt of just over CHF 10 million at the end of 2003 to net cash, even though investments totaling over CHF 10 million were made in the year just ended. With an operating cash flow (EBITDA) of around 17%, the Komax Group looks set to achieve its strategic targets once again in 2004, largely as a result of the push for quality growth.
The wire-processing business developed strongly in the U.S., with Komax reporting an all-time high for the region. In Asia, the Group created a satisfactory earnings situation through continuous strong growth. Specifically, Komax's presence in Shanghai has been warmly received by customers (both internationally and locally). In Europe, though, growth began to tail off from the heady pace of the previous year, as the traditional West European markets experienced a decline in sales volume. The order intake was unsatisfactory in the first half-year, especially for large-scale systems, leading to a dip in second-half sales.
The following trends can be discerned in relation to the Komax Group's fifteen product lines: The photovoltaic market picked up strongly after its prolonged slump. Special machines such as twisters and robots for the fully automated production of complete wire harnesses performed well. The innovative alpha 455, launched in November, met with lively interest, and Komax is confident this will be translated into success on the market in the year now underway. The second half-year saw a most encouraging trend in solutions for the assembly of mechanical and electronic components, producing a corresponding recovery in order intake. In December, Komax landed a major order in these product lines totaling around CHF 9 million.
Komax is cautiously optimistic about the 2005 financial year. The Group ended the year on a strong note, with a year-end book-to-bill ratio of roughly 1.1. With the successful launch of a whole range of new products at the end of 2004, the Group was able to further strengthen its strategic position, and is determined to defend its market leadership.
A detailed explanation of the financial statements will be given at the Media Conference and Analysts' Presentation on Tuesday April 5, 2005, 10.00 a.m. at the SWX Swiss Exchange -- ConventionPoint, Zurich.
The press release can be downloaded from the following link: http://hugin.info/100418/R/976977/143984.pdf