Meyer Burger increased its net sales and maintained the operating result at an attractive level during the first half of 2009, in an extremely challenging economic environment. Net sales rose by 11% to CHF 213.4 million (1st half of 2008: CHF 192.7 million). Gross profit, at CHF 76.4 million, was practically unchanged compared to the previous year period. EBITDA amounted to CHF 24.2 million in the first six months of 2009, corresponding to an EBITDA margin of 11.4%. Meyer Burger concluded the first half of 2009 with a profit at EBIT level of CHF 13.2 million and increased group earnings by 4% to CHF 12.1 million. In light of the continuing uncertainties with regards to the development of the global economy, it is difficult to provide clear sales and earnings forecasts for the current year. Meyer Burger expects solid results for fiscal year 2009.
Profitable growth
Meyer Burger Technology Ltd (SIX Swiss Exchange: MBTN) achieved solid results in the first half of 2009.
The worldwide recession had led to very limited credit availability for the financing of large infrastructure projects within the solar industry. Meyer Burger was affected by this situation, as already agreed shipments of machines were postponed, and in general fewer orders were received. Meyer Burger recorded a total volume of CHF 99.0 million of new orders in the first half of 2009. As of 30 June 2009, the order backlog amounted to CHF 661.4 million, which provides a very comfortable basis for the company’s future performance. Net sales grew by 11% to CH 213.4 million in the first half of 2009 compared to CHF 192.7 million for the same period last year. 41% of sales were generated with customers in Europe and just over 58% with customers in Asia.
Gross profit, at CHF 76.4 million, was practically unchanged compared with CHF 76.1 million in the previous year period. The gross margin in the first half of 2009 was 35.8% compared to 39.5% during the first half of 2008. The lower margin can be attributed to a change in the product mix and to lower levels of other income during the reporting period.
Personnel expenses increased by approximately 6% to CHF 31.3 million. The number of employees reached 635 (FTE) as of 30 June 2009, an increase of 35% compared to the workforce employed by the Group as of 30 June 2008. Operating expenses rose to CHF 20.9 million in the first half of 2009 compared with CHF 16.5 million in the same period last year. The increase is mainly due to larger investments in research and development in conjunction with product optimisation, further applications in the area of wire saws, and the development of a process management system for wafer factories in the solar industry. In addition, Meyer Burger incurred higher costs as a result of the expansion of the Group, the change of the financial reporting to IFRS, and the M&A expenses in conjunction with the acquisition of Diamond Wire Technology.
EBITDA for the first half of 2009 amounted to CHF 24.2 million with a margin of 11.4% compared to EBITDA of CHF 30.1 million and a margin of 15.6% in the first half of 2008. In terms of EBIT, Meyer Burger generated a profit of CHF 13.2 million compared to CHF 19.7 million in the first half of 2008. Thanks to a higher net financial result, Group earnings improved by 4% to CHF 12.1 million.
Solid balance sheet
Meyer Burger Group has a very solid financial position. At the balance sheet date on 30 June 2009, total assets amounted to CHF 373.6 million. Equity was at CHF 138.9 million, which corresponds to an equity ratio of 37.2%.
Strategic acquisition
At the beginning of August 2009, Meyer Burger announced the 100% acquisition of Diamond Wire Technology (DWT), which it considers a strategically important takeover. DWT is a world leader in the development of diamond wire technology. With this acquisition, Meyer Burger is expanding its product portfolio and consolidating its position as the technological leader in slicing technologies for the solar industry.
Outlook
The worldwide economic crisis isn’t over yet. In view of the ongoing uncertainties regarding the future economic development, it remains difficult to provide clear sales and earnings forecasts. Meyer Burger expects to achieve solid results for the entire fiscal year 2009. From discussions with customers and the fact that there are various plans for further expansion phases in the production capacity of solar cell manufacturers, Meyer Burger believes that the industry is preparing itself for the next phase of growth.
Looking ahead, the solar industry will play a major role in ensuring that the world’s future energy requirements can be met efficiently and in an environmentally sound manner. Meyer Burger therefore believes in strong, sustainable growth both for the solar industry as well as for its own Group.
Key figures Meyer Burger Group
Consolidated income statement
in TCHF
1. HY 2009
IFRS1
1. HY 2008
IFRS1
1.HY 2008
Swiss GAAP FER
Net sales
213 427
192 694
201 084
Gross profit
76 383
76 090
74 571
in % of net sales
35.8%
39.5%
37.1%
EBITDA
24 233
30 088
29 041
in % of net sales
11.4%
15.6%
14.4%
EBIT
13 188
19 696
17 346
in % of net sales
6.2%
10.2%
8.6%
Group earnings
12 123
11 633
12 494
Consolidated balance sheet
in TCHF
30.06.2009
IFRS1
31.12.2008
IFRS1
31.12.2008
Swiss GAAP FER
Total assets
373 552
398 776
390 262
Equity
138 890
125 717
147 145
Equity ratio
37.2%
31.5%
37.7%
1 Meyer Burger Group prepared its consolidated financial statements in accordance with the International Financial Reporting Standards (IFRS) for the first time in the current reporting year 2009. The comparable information regarding the previous year period has been adjusted accordingly.
The entire Half-Year Report 2009 is available on Meyer Burger’s website under – Investor Relations – Financial Reports.
URL: http://www.meyerburger.ch/en/public-relations/news/latest/
For further information please contact:
Investor Relations:
Michel Hirschi, CFO
+41 33 439 05 05, ir@meyerburger.ch
Media Relations:
Werner Buchholz, Head of Group Communications
+41 33 439 05 06, w.buchholz@meyerburger.ch
About Meyer Burger Technology Ltd
www.meyerburger.ch
Meyer Burger Technology Ltd is a leading and globally active technology group for innovative systems and processes for cutting and handling crystalline and other high-grade materials.
The machines, competences and technologies of the different companies in the group are used in the solar industry (photovoltaics), semi-conductor and optical industry. The thinnest wafers made from silicon, sapphire or other crystals are required in these three markets to manufacture solar modules, switching circuits or high-performance LEDs. The group’s core competences are made up of a whole range of production processes, machines and systems that are used within the value chain in the manufacture of high quality wafers. The comprehensive range of products is complemented by a worldwide service network with wear and tear parts, consumables, re-grooving service, process know-how, servicing, after-sales service, training and other services. As a globally active company, the group is represented in Europe, Asia and North America in the respective key markets.
Meyer Burger has its headquarters and the production facility of Meyer Burger Ltd in Switzerland. The group companies, Meyer Burger Automation GmbH, Hennecke Systems GmbH and AMB Apparate + Maschinenbau GmbH, have their headquarters and production facilities in Germany. The group also has subsidiaries and own service centres in Germany, Norway, China and Japan, which all are represented by its own staff on-site. In Taiwan and the USA, Meyer Burger works with independent sales and service partners that are part of Meyer Burger’s global service network. In other important countries the company relies on selected independent agents. Meyer Burger achieved net sales of CHF 213.4 million in the first half of 2009 and employed 635 staff worldwide as of 30 June 2009.
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