- Consolidated sales: €153.1 million, above the strong figure of the previous year
- Consolidated EBITDA at a very good level of around €13.4 million
- Consolidated EBIT for the quarter grown by 28% to €5.1 million
- Net debt reduced sharply
- Equity remains strong at 42.7%
- Orders books are €127.0 million, up on the previous year
euromicron drove ahead with integrating the company in the first half of 2013, achieving important first milestones on an operationally stable basis. The various integration measures – such as the move to modern, forward-looking establishments, expansion of the IT infrastructure and reorganization of management structures at the company – continue to be flanked successfully by investments in product innovation, a rigorously applied, group-wide cost-cutting program and optimization of processes.
Consolidated sales
Whereas the ICT market has not picked up speed as expected due to the fact that strategies in the telecommunications industry remain heterogeneous and investment activity is restrained in individual sectors, the euromicron Group generated stable consolidated sales of €153.1 million in the first half of 2013, slightly surpassing the strong figure of €152.8 million for the same period of the previous year.
Consolidated income
Despite the costs of integration, earnings before interest and taxes (EBIT) were approximately at the level of the previous year and were around €9.2 million (previous year: €9.7 million). A comparison of quarters shows initial positive effects of the integration measures and the flanking cost-cutting program: Consolidated EBIT rose by around 28% to €5.1 million from April to June 2013, following €4.0 million in the same quarter of the previous year. EBITDA was at the good level of €13.4 million (previous year: €13.7 million). The EBITDA margin was within the planned target corridor at around 8.8%. Operating income of the associated companies was €12.1 million, compared with €12.5 million in the previous year. Net income for the period was €5.0 million at June 30, 2013, compared with €5.4 million in the previous year. Undiluted earnings per share were €0.76, almost equaling the good level of the previous year (€0.82).
Order situation at the Group
New orders were €154.8 million, some 5% up on the previous year (€148.0 million). Order books were around €127.0 million, about 3.5% above the previous year’s €122.7 million. We are not currently aware of any risks from significant project delays or postponements.
Balance sheet structure
The euromicron Group’s total assets increased to €285.9 million at June 30, 2013, a rise of €2.0 million over the figure at December 31, 2012 (€283.9 million)
Personnel
1,759 persons were employed by the euromicron Group as of June 30 of fiscal 2013. Personnel costs totaled €46.2 million (previous year: €43.4 million). A group-wide qualification drive is helping make sure that staff are given the qualifications required for the Group’s next phase of growth.
Equity
Equity at June 30, 2013, was €121.9 million, €2.9 million above the level stated at December 31, 2012. The equity ratio was again constant at a strong 42.7%.
euromicron’s share
Against a backdrop of considerable market volatility, the euromicron share began the second quarter of 2013 at a price of €15.66 and stabilized at €14.60 by the end of the first half of the year. Its performance was impacted mainly by the sharp reduction in small caps (of which euromicron’s share is one) held by large investors in the spring. Nevertheless, analysts and research houses continue to trust in the company’s solid economic development and long-term business policy and believe that an upside target of up to €25.50 is realistic.
Outlook
“Our operational business is stable and is running in line with our planning. On this good foundation, we intend to tackle the next stage of integration in the second half of 2013 and expand and deepen the measures planned as part of the Agenda 500. As a result, we will create the conditions for our company’s sustainable, profitable growth to an annualized sales volume of €500 million in 2015,” states Dr. Willibald Späth, Chairman of the Executive Board.
That means the company will continue to work with the utmost focus and attention on integrating, adapting and flexibilizing personnel and formal structures and financial funding in the second half of 2013. This includes further development and expansion of the established Competence Centers and shared service units, optimization of management structures, taking over qualified teams, technologies, employees and patents, deepening the qualification drive and constant adjustment to the needs of corporate governance. The various integration measures and initiatives will be flanked by cost-cutting programs totaling around €10 million by the end of 2014, so that sustainable, profitable growth is generated.
euromicron has set itself a sales target of €350 to €365 million and an EBITDA margin of between 8% and 11% for the year 2013. “We feel certain at present that we and euromicron – with its business model geared toward sustainable growth, our clear strategic orientation, a secure basis for financing and a strong equity ratio – will be able to achieve these targets,” said Chairman of the Executive Board Dr. Späth.
You can find the Q2/2013 Interim Report as of August 9, 2013, on our homepage at http://www.euromicron.de/en/finanzberichte.
euromicron AG (www.euromicron.de) is an all-round solution provider for communications, transport, data and security networks. euromicron’s network infrastructures integrate voice, video and data transport wirelessly, via copper cable and by means of fiber-optic technologies. euromicron builds leading applications, such as security, control, healthcare or surveillance systems, on the basis of these cutting-edge network infrastructures.
Founded on its expertise as a developer and producer of fiber-optic components, euromicron AG is a strongly growing, highly profitable group that is listed on the stock market, has a medium-sized character and focuses on operational growth, integration and further market penetration, internationalization and expansion.