MANZ AG PUBLISHES HALF-YEAR REPORT 2019

CEST : Reutlingen sales of EUR 133 million due to order delays below the previous year | EBIT improved by EUR 1.1 million year-on-year, but still negative | Adjusted sales expected slightly below the previous year | Positive earnings forecast for 2019 confirmed

Manz AG, a global high-tech engineering company, today publishes its half-year report for 2019. Accordingly, the company was unable to continue the momentum of the first quarter in the following months as the Energy Storage segment continues to delay the assignment of significant orders already expected in the second quarter. As a result, the contribution to sales in the second quarter of EUR 56.0 million was lower than in the first quarter of 2019 (EUR 76.8 million) and 26.2% below the revenues of the second quarter of the previous year (EUR 75.9 million). Total revenues in the first half of 2019 amounted to EUR 132.8 million (previous year: EUR 144.4 million).

Earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to EUR 5.7 million (previous year: EUR -0.5 million). The application of new accounting standards increased depreciation compared with the previous year. Earnings before interest and taxes (EBIT) amounted to EUR -3.4 million in the first half of 2019, thus improving on the previous year’s level (EUR -4.5 million).

Martin Drasch, CEO of Manz AG, comments: “We had a very good start to the year 2019 in the first quarter and saw that our implemented measures to further develop our business model and product portfolio are taking effect. Therefore, it is of course disappointing that we were unable to continue this positive trend in the second quarter due to order delays. Regardless of this, we continue to see ourselves on the right path to becoming sustainably profitable again. However, given the shifts in order intake, we have decided to lower our sales forecast to a level slightly below the previous year’s level. On the other hand, we are maintaining our earnings forecast for a positive EBIT margin in the low single-digit percentage range. “

In line with the CIGS project, the Solar segment reported declining sales compared to the previous year. On the customer side, a further delay in the completion of the buildings led to further delays in the start of installation. In this context, the possible awarding of follow-up contracts will be further delayed. Sales in the Electronics segment were significantly above the previous year’s level. As expected, the segment result also improved significantly, albeit still negative. Business development in the Energy Storage segment was significantly affected by the aforementioned delay in the awarding of major orders. In the Contract Manufacturing segment, sales were at the previous year’s level, while earnings improved significantly compared to the previous year.

Sales, EBITDA and EBIT H1 2019 year on year