Meyer Burger launches comprehensive structural programme to sustainably increase its profitability

 

 

Meyer Burger launches comprehensive structural programme to sustainably increase its profitability

 Meyer Burger Technology Ltd (SIX Swiss Exchange: MBTN) announced today that it has initiated a company-wide structural programme. The objective of the programme is to extensively strengthen the company’s strategic technology units focussed on high-end photovoltaic user markets and to increase its flexibility in the often challenging high-end key markets. In addition, the global service business will be strengthened and individually expanded within local customer and application markets. As a result of the structural programme, the total operating cost base will further decline by about CHF 50 million.   

Meyer Burger has already executed numerous measures during the past five years, reduced its operating expenses, simplified its corporate structure and re-adjusted capacities due to the extremely challenging situation in the solar industry. The level of personnel and other operating expenses declined by over 36% from CHF 330 million in fiscal year 2011 to CHF 210 million in fiscal year 2015.

 

In the first half of 2016, Meyer Burger achieved a profit at the EBITDA level for the first time since 2012. The positive EBITDA of CHF 6.2 million and the positive cash flow from operating activities of CHF 15.4 million for the first half-year 2016 confirm the direction the company has taken and its resulting turnaround. However, further comprehensive cost reductions will be necessary in order to also enable long-term and sustainable profitability on the net earnings level.

 

The company’s mid- and long-term objective is to strengthen its strategic technology units focussed on high-end photovoltaic user markets and to increase its flexibility against short-term shifts in the market through industry-leading and manufacturing-proven technologies and products, as well as through an increased local services business.  

 

As a result of the cost-cutting measures which are linked to the structural programme, the annual operating cost base of the company will further decline by about CHF 50 million.

 

Cost-cutting measures completed until year-end 2016

The organisational and production structures in the Technology and Production Centers will be further optimised and focussed on core technologies. Capacity adjustments will take place in Asia. Research and Development, the worldwide sales and service organisation and certain parts of the product portfolio will be streamlined. All these measures will lead to a very lean company structure focussed on high-end photovoltaic user markets.    

 

As a result of the structural programme, the number of employees will be reduced by about 250 positions or 16% by year-end 2016 compared to mid-year 2016 (1,547 FTE). About one third of the reductions will occur in Switzerland, mainly at the site in Thun. Today in Switzerland the relevant consultation procedures will begin together with the employee representatives. Wherever possible, reductions will be achieved through natural fluctuations or early retirement schemes. However, it will most likely not be possible to avoid terminating employment contracts with many people. Meyer Burger regrets the effects this will have on the people concerned and will do its utmost to make the measures as socially compatible as possible.      

 

The extraordinary expenses in conjunction with the structural programme are expected to be about CHF 3 to 4 million and will be charged as one-off costs to the 2016 financial statements.

 

 

“The improvements we achieved during the first half of 2016 in terms of our sales markets but also with respect to our operating results have been very encouraging. However, we must lift our company into sustainable profitability on the net earnings level as well. We want to align Meyer Burger for the future and become leaner, increasingly flexible and even more focussed than before on the high-end user markets in the photovoltaic industry. This unfortunately leads to far-reaching measures within our organisational structure. These decisions are not easy to take. The structural programme creates the conditions for Meyer Burger to increase its operating profitability and to continue benefitting from its strong market position”, says Peter Pauli, CEO of Meyer Burger.  

 

 

Contacts:

Werner Buchholz

Head of Corporate Communications

Phone +41 (0)33 221 25 06

werner.buchholz@meyerburger.com

 

Ingrid Carstensen

Corporate Communications

Phone +41 (0)33 221 28 34

ingrid.carstensen@meyerburger.com

 

  

About Meyer Burger Technology Ltd

www.meyerburger.com

Meyer Burger is a leading global technology company specialising on innovative systems and processes based on semiconductor technologies. The company’s focus is on photovoltaics (solar industry) while its competencies and technologies also cover important areas of the semiconductor and the optoelectronic industries as well as other selected high-end markets based on semiconductor materials. The company currently employs over 1,500 people across three continents. Over the past ten years, Meyer Burger has risen to the forefront of the photovoltaic market and established itself as an international premium brand by offering superior precision products and innovative technologies.

 

Meyer Burger’s offering in systems, production equipment and services along the photovoltaic value chain includes the manufacturing processes for wafers, solar cells, solar modules and solar systems. Meyer Burger provides substantial added value to its customers and clearly differentiates itself from its competitors by focusing on the entire value chain.

 

The company’s comprehensive product portfolio is complemented by a worldwide service network with spare parts, consumables, process know-how, customer support, after-sales services, training and other services. Meyer Burger 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, Malaysia, the Netherlands, Switzerland, Singapore, Taiwan and the USA. The company is also working intensively to develop new markets such as South America, Africa and the Arab region. The registered shares of Meyer Burger Technology Ltd are listed on the SIX Swiss Exchange (Ticker: MBTN).

 

THIS PRESS RELEASE IS NOT BEING ISSUED IN THE UNITED STATES OF AMERICA AND SHOULD NOT BE DISTRIBUTED TO U.S. PERSONS OR PUBLICATIONS WITH A GENERAL CIRCULATION IN THE UNITED STATES. THIS PRESS RELEASE DOES NOT CONSTITUTE AN OFFER OR INVITATION TO SUBSCRIBE FOR, EXCHANGE OR PURCHASE ANY SECURITIES. IN ADDITION, THE SECURITIES OF MEYER BURGER TECHNOLOGY LTD HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE SECURITIES LAWS AND MAY NOT BE OFFERED, SOLD OR DELIVERED WITHIN THE UNITED STATES OR TO U.S. PERSONS ABSENT REGISTRATION UNDER OR AN APPLICABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE UNITED STATES SECURITIES LAWS.

 

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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