Thursday, 11 August 2016

Manz AG publishes report on the first six months of 2016: Negative 11.7 million EBIT

Following a good start to the year in the first three months of 2016, Manz AG announces heavy losses in H1

Manz AG (Reutlingen, Germany), a globally active high-tech equipment manufacturer with an extensive technology portfolio covering the three strategic business segments of "Electronics", "Solar (Photovoltaics)" and "Energy Storage," on August 11th, 2016 published its financial report for the first six months of 2016.
Earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to EUR -4.5 million in the reporting period (previous year: EUR -6.7 million). Earnings before interest and taxes (EBIT) amounted to EUR -11.7 million (previous year: EUR -12.9 million).
Consolidated net loss came to EUR -17.0 million (previous year: EUR -15.0 million), corresponding to earnings per share of EUR -2.84 (previous year: EUR -2.94).

Order stop by a major customer
Following a good start to the year in the first three months of 2016, in the second quarter the company was confronted with the preliminary order stop by a major customer on short notice.
At the same time, however, with the successfully completed capital increase and the investment by Shanghai Electric in Manz AG, an important strategic milestone was achieved, and a sound foundation was created for the company to develop positively in the future again.
"We have had a good start into the year and initially were also able to continue this development in the second quarter. Our operating business showed a slight upturn which could be felt in revenues of around EUR 124 million,” comments Dieter Manz, CEO and founder of Manz AG.
“With our restructuring measures, we have successfully implemented the first steps for lowering our cost basis. But unfortunately the preliminary order stop of a major customer in the Energy Storage business segment caught us off guard, and therefore we are missing revenue in the middle single-digit millions range. This resulted in a negative EBITDA in the first six months of EUR -4.5 million."

Managing Board expects a significant increase in revenues
The Managing Board continues to be confident on the development in the second half-year. This is based essentially on the strategic cooperation with Shanghai Electric. The detailed planning for the future cooperation is on schedule, the company notes. Manz AG expects, that it will be able to report specifically on the next steps during the course of the third quarter.
Overall, the Managing Board therefore expects a significant increase in revenues with significantly improved earnings before interest and taxes (EBIT) for the full year.
However, above all there are planning uncertainties due to the ongoing customer discussions in connection with the order stop in the Energy Storage business segment.

Solar PV segment significantly increases share in total revenues
At EUR 49.8 million, the Electronics segment realized 40.2% of total revenues in the reporting period (previous year: EUR 42.3 million or 34.7%).
After six months the Solar PV segment had generated around EUR 17.5 million or 14.1% of Manz AG's total revenues (previous year: EUR 10.6 million or 8.6%).
The Energy Storage segment accounted for a EUR 34.9 million share of revenues or 28.1% in the reporting period (previous year: EUR 49.7 million or 41.0%) with equipment for the production of lithium-ion batteries and capacitors.
The Contract Manufacturing reporting segment was responsible for revenue contributions of EUR 15.0 million or 12.1% (previous year: EUR 14.2 million or 11.6%).
Revenues in the reporting segment Others totaled EUR 6.9 million, following EUR 5.2 million in the prior-year period; this corresponds to a revenue share of 5.5%, following 4.1% in the first two quarters of 2015. 
source: http://www.solarserver.com

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