Micronas posts positive third quarter result
- With sales of CHF 48.5 million and EBIT of CHF 10.5 million, results exceeded Management expectations
- For the first time in two years, Micronas posts a quarterly profit For the year as a whole, the Board of Directors and Management expect sales of around CHF 190 million, an EBIT margin of 12 percent, and a positive overall result
Micronas has posted consolidated net sales of CHF 48.5 million for the third quarter of 2010, which is around the same as the previous quarter (CHF 49.3 million). Operating profit (EBIT) was 72 percent higher than in the second quarter at CHF 10.5 million.
In the second quarter, the Company posted a loss of CHF 0.4 million after taking financial income and expenses into account, but in the third quarter Micronas went back into the black with a profit of CHF 19.8 million, achieving a positive quarterly result for the first time in two years. This profit includes a one-time exceptional item of CHF 12.9 million resulting from the formal liquidation and deconsolidation of Group companies and current IFRS rules that require equity items to be derecognized through the income statement. This derecognition has no effect on the cash position, equity capital, operating profit (EBIT) or income tax. It is possible that similar one-off effects may occur in future as a result of formally liquidating or deconsolidating other Group companies. Excluding this exceptional item, there was still a profit of CHF 6.9 million for the third quarter. The earnings per share figure stands at CHF 0.67. On September 24, 2010, Micronas held cash and cash equivalents of CHF 164.8 million, which is CHF 3.1 million lower than on June 25, 2010, and shareholders' equity of CHF 124.0 million. The equity ratio is 41.6 percent.
Within the Automotive division, currency-adjusted sales were at the previous quarter's level. Converted into Swiss francs, sales were at CHF 40.3 million compared with CHF 42.4 million in the previous quarter. Operating profit was CHF 9.4 million, representing an increase of 119 percent on the second quarter.
The performance of different automotive markets around the world is uneven. In some parts of Europe the number of new cars sold is falling as stimulation programs come to an end, but the three largest markets in the world, China, the USA and Japan, have boomed this year. The premium car segment in China is growing strongly, which is benefiting German car manufacturers in particular. Micronas expects demand to remain constant overall. The Industrial division is benefitting from the fact that sentiment in industrial markets has been strengthened by healthy economic data.
The Consumer division's sales for third quarter of 2010 came to CHF 8.2 million. Operating profit was CHF 1.1 million.
In order to keep pace with rising demand for newly developed products, Micronas decided to build up an additional R&D team of around 15 people in Munich. At the same time, it is expanding its worldwide marketing and sales team.
Utilization of production capacity at the Freiburg site was increased to over 75 percent in the third quarter of 2010 thanks to rising demand for Hall sensors, as well as residual volumes of Consumer production. Short-time working was lifted in Freiburg for the holiday months of July, August and September.
The CEO of Micronas, Matthias Bopp, expects "that the Automotive business will continue to develop at the same level in the fourth quarter, and that for the year as a whole Micronas will post sales of around CHF 190 million, an EBIT margin of 12 percent, and a positive overall result".
Detailed financial information as well as the quarterly report 3/2010 are available at: www.micronas.com
Note for financial analysts and media representatives
The respective conference call which will be held in English takes place on Tuesday, October 19, 2010, starting at 11 a.m., CET. Dial-in number: +41 58 262 07 31, Access Code 996683
Calling Instructions for your OPERATOR ASSISTED Conference:
1. Dial in (+41 58 262 07 31)
2. Upon request, dial your Access Code (996683)
3. You will be greeted by an operator
During the conference, all participants will be in listen only mode. Participants who would like to ask a question press *14 on the phone. Participants press *15 to pull back a question from the question queue. The Swisscom operator will accompany each questioner into the conference. When the question is answered, the questioner will be placed back into listen only mode.
A recorded version of the conference call will be available at: www.micronas.com
This press release contains forward-looking statements, such as projections, forecasts and estimates. Such forward-looking statements are dependent on certain risks and uncertainties which may cause actual results, performance or events to differ materially from those anticipated in this press release. The forward-looking statements contained in this press release are based on Micronas' views and assumptions as of this date and Micronas does not assume any obligation to update or revise this press release. This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities in any jurisdiction.
Micronas (SIX Swiss Exchange: MASN), a semiconductor designer and manufacturer with worldwide operations, is a leading supplier of cutting-edge sensor and IC system solutions for automotive electronics. Micronas offers a wide range of Hall-effect sensors and embedded microcontrollers for automotive and industrial applications, for instance in drive trains, chassis frames, engine management and in convenience functions.