- Consolidated sales grow by 18.2% to around €87.7 million (previous year: €74.2 million)
- Consolidated EBIT increases by 75.2% to €6.1 million (previous year: €3.5 million)
euromicron (ISIN: DE0005660005) was able to keep up its good performance in the first half of 2009 following the most successful year in the company’s history. Despite voices of gloom in the public sphere and among the business community, euromicron has stuck to its course unscathed and is presenting itself as a clearly structured technology group. This success is the result of a focused strategy. As a fiber-optic expert in Germany and a network infrastructure partner with a comprehensive presence, euromicron offers a diversified clientele a full line of services for networks.
“Our aim in the current fiscal year is to increase our Group’s profitability by means of further systematic integration. At the same time, we will basically remain true to our maxim and rigorously drive expansion of technology, access to markets and market volume.
In particular, in the ongoing phase of our strategy – namely Build and Integration – we are continuously working to review and improve the existing structures and to selectively expand our portfolio of products and services,” says Dr. Willibald Späth, Chairman of the Executive Board.
Consolidated sales
Consolidated sales increased in the first half of the year to €87.7 million (previous year: €74.2 million), a rise of around 18.2% over the comparable figure for the previous year.
Consolidated income
In the first six months, the euromicron Group posted earnings before interest and taxes of €6.1 million, a rise of some 75.2% over the comparable figure for the previous year of €3.5 million. Operating income of the associated companies was €9.8 million, compared with €5.9 million at the same time a year ago. Earnings per share (undiluted) rose from €0.40 in the previous year to €0.74 at June 30, 2009.
Order situation at the Group
The euromicron Group recorded new orders of €88.5 million in the first six months, versus €67.4 million for the same period in the previous year. Order books at June 30, 2009, were €71.3 million, 14% up year-on-year.
Balance sheet structure
The balance sheet at June 30, 2009, shows total assets of €168.1 million, a reduction of 2.3% from December 31, 2008. On the assets side, noncurrent assets remained virtually unchanged at 58.6%. Noncurrent assets comprise around 58% of total assets and are fully covered by stockholders’ equity and long-term outside capital.
Personnel
The euromicron Group employed an average of 971 people in the first half of 2009, an increase of 10% year-on-year. In addition, the companies in the euromicron Group currently employ 58 trainees in a wide range of different business administration and technical vocations.
Stockholders’ equity
Stockholders’ equity at June 30, 2009, was €72.4 million, around €1.4 million down on the level reported in the 2008 financial statements. This is mainly attributable to the dividend for fiscal 2008, which was paid out in June 2009 and totaled around €4.5 million. The equity ratio is 43.1%.
The share
After starting at a price of €10.26 on January 1, 2009, the euromicron share is now moving between €12.50 and just over €14.00. As soon as the markets enter calmer waters again, investors will once more pay attention to the quality and perspectives of a company and will then definitely reward the euromicron by investing in its share. This is confirmed to us by banks, analysts and research houses as part of their “buy” recommendations.
Outlook
The company’s successful performance in the first half of 2009 strengthens the Executive Board in its resolve to continue the adopted path in the second half of the year. Nevertheless, the euromicron Group still faces an uncertain economic development and fluctuating general conditions that are difficult to predict in the second half of fiscal 2009.
The euromicron Group expects a sharp year-on-year increase in sales and income for the whole of 2009. The target for sales remains €200 million with an EBIT margin of 8% to 11%. The good order situation, high order books and –– as experience shows – a stronger second half confirm our expectations and forecasts for 2009 at the present time. However, continuing restraint to invest on the part of industrial companies and long overdue structural investment by the public sector could impact our success.
The Build and Integration phase will be continued in the second half of the year, with the objective of further optimizing the Group’s structures. The planned measures are in principle geared to market needs – and so to our customers.
We additionally plan to develop our growing presence in Eastern and Southeastern Europe by selective acquisitions, above all in Austria.
A market segment with volumes that have developed well since 2007 is healthcare.
“We aim to enhance our market opportunities and leverage the potentials in the highly promising markets of e-health and security. We have therefore obtained suitable licenses in the fields of health, nursing and care of the aged,” states Chairman of the Executive Board Späth.
The change on the Executive Board of euromicron addresses the Group’s forthcoming strategic development and ensures personnel continuity. A high degree of identification with euromicron and great willingness to achieve were key criteria in appointing a successor on the Executive Board. Thomas Hoffmann has been a member of euromicron’s Executive Board since July 15, 2009, and is responsible for business development, strategic sales and marketing, further development of structures and processes, and areas of communication with the capital markets. He succeeds Dr. Edgar Bernardi, who resigned for health reasons effective June 30, 2009, and has left the company.
A further focus in the Build and Integration phase is corporate financing. Apart from our partner banks and financers to the industry, an interested circle of new banks has redefined and expanded its commitment to a partnership together with the Executive Board. “Securing the greater financing needed for current business as a result of the company’s new size and ensuring support for the next strategic steps was a major task in the first half of the year, gives us freedom of action in ongoing negotiations, and is also regarded as a further interesting challenge and opportunity by our partner banks,” stresses Dr. Späth. “Our company has kept on course, irrespective of and unswayed by all the stormy weather and adversities. We feel certain that we are acting in accord with the interests of shareholders and the company with the approach we have taken,” says the Chairman of the Executive Board.
euromicron AG (www.euromicron.de) is one of the leading solution providers of communications systems and security networks and boasts production expertise in the field of fiber optics technology.