In response to the ongoing challenging market situation in the photovoltaic sector, Meyer Burger Technology Ltd (SIX Swiss Exchange: MBTN) is accelerating and expanding its current consolidation and optimisation programme. Since the beginning of 2012, the company has consolidated sales and service operations, simplified its organisational structure and restructured production. The overall number of permanent employees has been reduced by 19%, which is more than the 15% announced in March 2012, to 2,272 employees (FTE). The synergies and improvements which have already been achieved throughout the entire organisational structure must be further intensified and expedited. The market situation has made a further adaptation in capacities necessary. With around 2,000 employees (FTE) in future, the Meyer Burger Group will possess the necessary structure which will enable it to respond quickly and flexibly to changes in the market in a cost-efficient and customer-oriented fashion.
Following primary measures planned:
Roth and Rau AG in Hohenstein-Ernstthal (Germany) will carry out further restructuring measures which are expected to result in the reduction of 50 employees. The ongoing development of future-oriented technologies, specifically in the area of heterojunction technology, is not impacted by these measures. At other locations worldwide, measures for optimisation and adjustments in capacities are being undertaken which could lead to a reduction in personnel of around 200 employees. At this point in time, it is not possible to break down which individual Group companies or countries will be impacted.
The goal of these further restructuring measures is to increase efficiency and reduce operating costs by around CHF 30 million.
Focus on technology leadership
Despite the challenging market, Meyer Burger’s momentum remains undiminished in its research and development activities for photovoltaic technology as it continues to increase its technological edge and the process integration between wafer, cell and module technologies. A recent example is the successful market introduction of heterojunction technology which offers a significant surface advantage with its module performance of 180W/m2 (in comparison to the standard 140W/m2). With a cell performance efficiency of 21%, this technology generates record setting 303 watt modules.
As a system integrator from wafer to PV module, the Meyer Burger Group has a unique product and solution portfolio from which the optimal configuration for customers can be selected and implemented. With its focus on the photovoltaic value chain, Meyer Burger enables its customers to combine the advantages of the individual production steps, to reduce the overall cost of ownership and at the same time to increase the overall performance and efficiency of cells and modules.
Outlook
Various project discussions with customers, among them also in new PV markets in Asia, South America, in the Arab region and in Africa, confirm Meyer Burger’s conviction that the long term prospects for photovoltaics continue to be positive. However, it remains very difficult to forecast when these project discussions will result in new contracts and when the current overcapacity of solar cell and module manufacturers will be reduced. For this reason, visibility in the overall market remains limited.
Based on the expected project acceptances until the end of 2012, Meyer Burger expects at this point in time to achieve sales of slightly over CHF 600 million in fiscal year 2012. The lower expected sales and the ongoing restructuring costs will lead to an expected loss at EBITDA level of approximately CHF 20 to 40 million. With the measures being taken as part of the accelerated consolidation and optimisation programme, Meyer Burger aims to reduce the EBITDA break-even threshold in order to achieve a break-even result at EBITDA level already with similar sales volumes as in 2012.
For further information please contact:
Werner Buchholz
Head of Corporate Communications
Tel +41 (0) 33 221 25 06
werner.buchholz@meyerburger.com
Michel Hirschi
Chief Financial Officer
Tel +41 (0) 33 221 28 00
ir@meyerburger.com
About Meyer Burger Technology Ltd
www.meyerburger.com
Meyer Burger is a leading global technology Group. Our innovative systems and production equipment create sustainable value for our customers in photovoltaics (solar industry), in the semiconductor and optoelectronic industries as well as other selected industries which focus on semiconductor materials. The Group currently employs approximately 2,270 people across three continents. In our core business – photovoltaics – integrated systems and solutions which increase manufacturing performance and efficiency are the cornerstones of our corporate strategy. The Meyer Burger Group’s industry expertise and leading photovoltaic technologies along the entire value chain encompass all important production processes, systems and equipment for solar production from wafers to building integrated solar systems.
The Group’s core competencies cover a broad range of production processes, machines and systems that are used for the production of ultra-thin, high quality wafers, for coating and optimizing as well as inspection and measurement of high performance solar cells, for laminating, soldering and testing of solar modules and for building-integrated solar systems.
A worldwide service network including spare parts, consumables, re-grooving services, process know-how, customer support, after-sales services, training and other services completes the Group’s comprehensive product portfolio. Meyer Burger Group is represented in Europe, Asia and North America in the respective key markets and has subsidiaries and own service centres in China, Germany, India, Japan, Korea, the Netherlands, Norway, Switzerland, Singapore, Spain, Taiwan and the USA. The company relies on selected independent agents in other important markets. The registered shares of Meyer Burger Technology Ltd are listed on SIX Swiss Exchange (Ticker: MBTN).
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This press release may contain “forward-looking statements”, such as guidance, expectations, plans, intentions, or strategies regarding the future. These forward-looking statements are subject to risks and uncertainties. The reader is cautioned that actual future results may differ from those expressed in or implied by the statements, which constitute projections of possible developments. All forward-looking statements included in this press release are based on data available to Meyer Burger Technology Ltd as of the date that this press release is published. The Company does not undertake any obligation to update any forward-looking statements contained in this press release as a result of new information, future events or otherwise.
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