Manz AG expects significantly higher revenue and profits for 2018
29.03.2018 07:31:00 CEST, Reutlingen Preliminary figures for financial year 2017 confirmed: record revenue and positive EBIT including one-off effect in the Solar segment – Measures for increasing competitiveness and profitability showing first signs of success – 2018: revenue increase of 10-14 % and slightly positive operating EBIT expected
- Preliminary figures for financial year 2017 confirmed: record revenue and positive EBIT including one-off effect in the Solar segment
- Measures for increasing competitiveness and profitability showing first signs of success
- 2018: revenue increase of 10-14 % and slightly positive operating EBIT expected
Manz AG, a globally active high-tech equipment manufacturer, has released its full Annual Report for financial year 2017. The company confirms its positive overall development in 2017, considerably increasing both revenue as well as earnings before interest and taxes (EBIT) compared to the previous year. Revenue rose by 40.7 % to a record level of 325.0 million euros (previous year: 231.0 million euros) while EBIT climbed by 37.5 million euros to 1.6 million euros (previous year: -35.9 million euros), including a one-off effect in the Solar segment from the sale of Manz CIGS Technology GmbH.
“In 2017, we initiated numerous measures aimed at making the company durably profitable once again,” notes Eckhard Hörner-Marass, Chief Executive Officer of Manz AG. “Through targeted organizational and process improvements, we have succeeded in increasing the company’s competitiveness and profitability. Further evidence that these measures are taking effect was also reflected in the final quarter, which saw a revenue volume of around 132 million euros and positive EBIT. With this, we have established the basis for ensuring stable and profit-oriented growth for the company across all our business segments.” Moreover, the product portfolio has gradually been expanded since mid of 2017 with the addition of standardized stand-alone machines and modules. This will contribute to broaden the customer base and to further stabilizing business development.
Manz AG will continue to pursue this course in 2018 as well. The Managing Board sees considerable potential for sustainably improving the company’s earnings by implementing further organizational improvements through the optimization program Manz 2.0. This includes measures such as removing parallel organizational structures, minimizing the number of interfaces, and reducing overheads. The fusion of the previously independent business areas Display and Printed Circuit Boards in Asia as of February 1, 2018, was an important step towards this aim. The implementation of the large-scale CIGS orders in the Solar segment is also progressing according to plan. In the segments Energy Storage and Electronics, the volume of incoming orders has greatly exceeded the figures from the previous year, also in line with expectations.
“At the end of 2017, we achieved an order volume of 222.0 million euros,” adds Eckhard Hörner-Marass. “The intensity of inquiries from the industry is further growing and the amount of incoming orders in 2018 has been developing well. Moreover, as of December 31, 2017, we possess liquid funds amounting to 72 million euros, as well as not fully utilized credit lines of nearly 21 million euros. That means we have plenty of financial resources to implement the measures planned for achieving sustained profitability. With these considerations in mind, we expect to see a significant increase in revenue, as well as slightly positive operating EBIT this year.”
In comparison to 2017, the Managing Board expects an increase in revenue of between 10 and 14 % and a slightly positive EBIT, without any one-off effects. This would amount to an improvement in operating earnings of around 30 million euros. Revenue is expected to increase across all business segments. Due to the continued high research and development expenses for further expanding the product portfolio, as well as investments in market cultivation, the segments Electronics and Energy Storage are not expected to make a positive contribution to the Group’s EBIT until 2019. Detailed prognoses for all the segments have been published in the 2017 Annual Report.
The complete report for 2017 is available for download as of today on the company’s website www.manz.com in the section “Investor Relations” / “Publications.”