DIERIKON, Switzerland, Aug. 29, 2006 (PRIMEZONE) -- The Komax Group substantially improved sales and profit in the first six months of 2006. First-half net sales came in at CHF 150.3 million, a 25.5% increase on the corresponding period of the previous year. Group profit after tax (EAT) jumped 87.0% to CHF 14.1 million. Komax expects market activity to remain at a solid level in the second half.
In the first six months of 2006, the Komax Group posted consolidated net sales of CHF 150.3 million (H1 2005: CHF 119.7 million), a 25.5% advance on the prior-year figure. After stripping out acquisitions, the increase amounts to 17.3%. Komax lifted sales by 18% in Europe, by 41% in North America and by as much as 67% in Asia. On the basis of its development and production activities in Shanghai, Komax also expects to gain additional momentum in the Chinese market.
The company's earnings power was given an unexpectedly strong boost by the increase in sales. Operating profit (EBIT) soared 76.7% to CHF 17.7 million (H1 2005: CHF 10.0 million), representing an EBIT margin of 11.8% (H1 2005: 8.4%). Consolidated profit (EAT) improved by 87.0% to stand at CHF 14.1 million (H1 2005: 7.5 million), resulting in an EAT margin of 9.4% (H1 2005: 6.3%).
Markets and environment
At present, the market environment for wire-processing machines is extremely favourable, especially in the automotive sector. The increased use of electronics and electrics in motor vehicles is having a positive impact on business for Komax. Two other factors come into play: Many original equipment manufacturers (OEMs) are moving their production facilities to new areas in Eastern Europe, Latin America and China, thereby triggering new rounds of investment. They are also expanding their product portfolios, with the broader range of models subsequently leading to greater investment activity in the wire-processing segment.
The shift toward IDC (insulation displacement connection) technology in household equipment is advancing at a steady pace, again encouraging investment activity.
The medtech market is also performing in line with the high expectations. Thanks to the reorientation of its American production facility, Komax Systems Rockford, creating a focus on medtech business, the Group gained additional customers in the United States. Strong growth was also reported among inhaler production systems.
Equally gratifying trends can be noted on the photovoltaic market. The Xcell 2500 machine system generated particularly high sales for Komax. In addition, the Group delivered further types of machine used in the production of solar modules. For the year as a whole, Komax expects growth in this area to exceed 100%.
Outlook
In the first half of 2006, Komax has created a sound base, putting it on track to achieve the bright growth forecast for the year as a whole. The Group expects market activity to remain high in the second half of the year. In mid-August, Komax entered into a joint venture with a Malaysian systems manufacturer. This collaboration boosts Komax's production capacity in the Asia region, thus strengthening its market position. In spite of the potential slowdown in the US economy, the Group expects a substantial improvement in its full-year result compared with 2005.
Key figures of the Komax Group
Consolidated balance sheet 30.6.2006 31.12.2005 Change
CHF 1,000 CHF 1,000 %
Current assets 163,607 147,107 11.2
Fixed assets 116,359 120,292 -3.3
Total assets 279,966 267,399 4.7
Short-term liabilities 65,440 68,240 -4.1
Long-term liabilities 27,321 27,418 -0.4
Shareholders' equity 187,205 171,741 9.0
Total liabilities and shareholders'
equity 279,966 267,399 4.7
Consolidated income statement 1st half 1st half Change
2006 2005
CHF 1,000 CHF 1,000 %
Net sales 150,273 119,711 25.5
Gross profit 87,483 68,912 26.9
Operating profit (EBDIT) 21,510 13,910 54.6
Operating profit (EBIT) 17,683 10,009 76.7
Financial result -147 -888 -83.4
Group profit after tax (EAT) 14,082 7,531 87.0
Consolidated cash flow statement 1st half 1st half Change
2006 2005
CHF 1,000 CHF 1,000 %
Net cash from operating activities 2,151 4,912 -56.2
Net cash from investing activities -1,871 -26,575 -93.0
Free cash flow 280 -21,663 101.3
Net cash from financing activities 699 3,298 -78.8
Par value repayment(a) 0 0
Increase (+) / Decrease (-) in funds 1,282 -19,533 106.6
Funds = cash and cash equivalents (including time deposits with a
term of up to three months)
(a) Par value repayments of CHF 2.00 in August 2005 and CHF 2.00 in
July 2006.
Key figures 2006 2005
Net indebtedness (-) / Net
assets (+) 30.6.2006 / 31.12.2005 CHF 1,000 -396 -3,452
Gross profit 1st half in % of net
sales % 58.2 57.6
Cash flow (EBDIT) 1st half in % of
net sales % 14.3 11.6
Operating profit (EBIT) 1st half in
% of net sales % 11.8 8.4
Group profit (EAT) 1st half in % of
net sales % 9.4 6.3
Headcount as of 30.6.2006 / 31.12.2005 Number 939 886
The complete financial statements for the first half 2006 can be downloaded from the Internet at www.komaxgroup.com or ordered by phone.
The Media Release including tables can be downloaded from the following link: First half of 2006 (PDF) http://hugin.info/100418/R/1071979/183218.pdf