Machining and assembly systems sales and profits up for Mikron

Production solutions provider of machining and assembly technologies, Mikron, announces order and sales volume at a good level while profits further improved.

The Mikron Group, Biel, Switzerland, a specialist in the production of machining and assembly systems, achieved an order intake of CHF 137.0 million (-22.2%) and net sales of CHF 144.5 million (+18.2%) in the first half of 2008. Taking account of the unusually high order volume in the previous year, both of these figures fulfilled expectations. The operating profit (EBIT) of CHF 5.2 million (+30.0%) and Group net earnings of CHF 4.3 million (+48.3%) developed positively and were both higher than in the previous year. For the entire financial year 2008, the targeted improvement on the previous year’s results is within reach.

Mikron* still ranks as one of the world’s leading providers of customer-specific machining and assembly systems. An important driver of Mikron’s business is the continuous development of modern fuel injection systems by the automotive supply industry. Furthermore, Mikron’s production solutions are in high demand in numerous sectors with high-volume requirements and strict demands concerning precision and reliability – for instance in the medical technology and pharmaceutical industries and in the writing instrument and consumer goods industries.

In recent months, the economic environment has noticeably changed due to the influence of the ongoing crisis on the financial markets. In Mikron’s environment, potential effects are not yet being strongly felt. From time to time, a more reserved approach to investments is noticeable among clients.

Order intake expectations fulfilled
The order intake of CHF 137.0 million was at a good level and fulfilled expectations. The decrease of -22.2% is of little relevance, as a large proportion of the entire annual order volume arrived cumulatively in the same period last year. Both the Machining Technology and the Assembly Technology divisions recorded a good mixture of orders across the market segments they serve. Orders with future potential – some from new market segments – were received from major international customers in the precision engineering and electrical engineering sectors.

Further increase in net sales
The sales volume was also at a good level and corresponded to expectations. At CHF 144.5 million (+18.2%), the value clearly exceeded that of the previous year and reflected the overall high capacity utilization.

Positive development of results
Operating profit (EBIT) at CHF 5.2 million (+30.0%) and Group net earnings at CHF 4.3 million (+48.3%) were improved. Development was thus positive, although current margins have not yet fulfilled internal expectations. The as yet insufficient order backlog of the two companies acquired last year, Namco (Switzerland) and Integral Systems (Singapore), led to a CHF 1.8 million decrease in operating profit (EBIT). However, it must be stated that, despite these teething problems, both companies match Mikron very well and display future potential at diverse levels.

Outlook
The Mikron Group is starting the second half of the year in a confident frame of mind and with a strong order backlog. Order and sales volumes are expected to match those achieved in the first half of the year. To ensure customer’s satisfaction, prompt processing of the high order backlog is top priority. In addition, further efforts are planned to improve the order backlog of the two companies acquired last year. Assuming no further worsening of the economical conditions, the Mikron Group expects to achieve a clear improvement in operating profit (EBIT) compared with the previous for financial year 2008.

For additional information please visit the Mikron web site.

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