- Consolidated sales: Up around 33% to €128.3 million
- Consolidated EBIT: Rise of 21.3% to €8.6 million
- New orders: Increase by 43.4% to €156.1 million
euromicron AG has turned in an exceptionally strong performance in the first half of 2011. The Executive Board subsequently reviewed its business performance forecast for 2011 and is raising it from the planned sales figure of €220 million to €280 to €300 million and anticipates an increase in EBIT to €25 million.
The good performance is attributable in particular to high operational growth at just about all euromicron companies in the first half of 2011. The basis for this was created, among other things, by the Group’s integration and professionalization measures, above all in relation to individual locations and competences, which will continue to form a stable and successful foundation for euromicron as an integrated system house with production expertise throughout Germany.
In addition, euromicron also actively leveraged the opportunities a growing market offered in the second quarter of 2011 and so continued its sustained development. One of these opportunities was completion of the large acquisition that was originally planned for the coming years, but was accomplished earlier with the purchase of telent GmbH effective June 7, 2011.
However, the new company’s contribution to sales in the first six months of 2011 was slight due to the fact that it has only been part of the Group for a short time. Nevertheless, the Executive Board expects it to contribute sales of around €90 million and an EBIT of 6 million to the consolidated results of euromicron as of 2012 and so is looking positively to the future. “By acquiring telent GmbH, we have initiated the next stage of our corporate strategy as planned, which will enable us to offer our customers an even broader portfolio of highly specialized network solutions for all needs of modern living, working and care. That will form the basis of the further earnings-oriented expansion of our company,” says Dr. Willibald Späth, Chairman of the Executive Board.
Consolidated sales
In the first six months of 2011, euromicron generated consolidated sales of €128.3 million, a year-on-year increase of around 33%.
Consolidated income
Consolidated EBIT rose in the period under review to €8.6 million (previous year: €7.1 million). Operating income of the associated companies was as we expected at €11.9 million (previous year: €10.1 million). Net profit for the period was €4.9 million (previous year: €4.1 million), giving undiluted earnings per share of €0.95 (previous year: €0.82), a sharp rise given the fact that new shares were issued in 2010.
Order situation at the Group
In the first half of fiscal 2011, euromicron generated new orders of €156.1 million, a rise of 43.4% year-on-year and the largest figure in euromicron’s history as a network specialist. Order books increased to €146.9 million at June 30, 2011, well above the figure of €100.8 million for the same period of the previous year.
Balance sheet structure
Total assets rose as a result of first-time consolidation of telent GmbH as of June 30, 2011, to €265.9 million, an increase of around €70 million over December 31, 2010 (€196.0 million).
Personnel
1,582 persons were employed by the euromicron Group as of June 30 of fiscal 2011. This increase is due to the acquisition of telent GmbH, 394 of whose employees joined the euromicron Group.
Equity
Equity is at virtually the same level as the previous year in absolute terms. It is €88.5 million as of June 30, 2011, some €0.8 million lower than in the 2010 annual financial statements. That is likewise largely due to the changes in the balance sheet structure in connection with first-time consolidation of telent GmbH in June 2011 and should be regarded as temporary for the time being.
The share
In an internationally extremely volatile market, euromicron’s share was not able to buck the general trend at times in the first quarter of 2011 and briefly fell after a good start to the year. The price stabilized in the second quarter and remained constantly above the €20.00 mark. At the end of the first half, euromicron’s share price rose to €21.20 at the reporting date, even after the dividend payment of €1.10 per share and in a still volatile market.
Outlook
euromicron AG will continue to work on ensuring the sustainability of its strategy in future. Following integration and development, the Executive Board is setting store by profitable expansion. The objective of its activities in the second half of 2011 will consequently be to strengthen the Group’s profitable and sustainable growth and bring telent GmbH closer into line with euromicron’s quality of earnings in initial steps.
To enable that, euromicron will continue to expand its product and service portfolio, strengthen development in profitable niche markets and grow the fields of technology it offers with systematic investments. In particular, it will focus more strongly on IP and active technology for all fields of transmission.
A key role in this connection is played by telent GmbH, whose customers have a significant need to migrate their existing communications networks to IP technologies. telent is the specialist in Germany for this migration from old to new, cutting-edge network and transport technology. “We will devote greater attention to merging telent GmbH’s business operations with euromicron in the second half of 2011 in order to leverage the greater know-how mutually and optimally for all our customers in all network segments and integrate telent in our value-oriented corporate management,” states Dr. Späth in relation to the newly acquired subsidiary.
euromicron will also undertake various marketing and PR activities in the second half in order to establish the euromicron brand as a byword for quality, solution-oriented expertise and know-how in all areas relating to network-based information, communications and security needs even more firmly in the market and strengthen and further harmonize the company’s image.
Despite the optimistic prospects, the Group will still pursue the continuous improvement process (CIP) it began in 2010 in 2011 in order to safeguard the company’s constant and positive performance.
“We feel sure that, with our business model, our greater technological know-how as a result of the acquisition of telent GmbH, our clear strategic orientation and secure, long-term financing, in conjunction with an equity base that remains goods, we will be equipped to continue driving sustainable expansion of the euromicron Group actively and successfully in the second half of 2011 in the interests of the company and its shareholders,” concludes Dr. Späth.
You can find the 2011 half-yearly report as of August 12, 2011, on our homepage at http://www.euromicron.net/en/finanzberichte.
euromicron AG (www.euromicron.de) is an all-round solution provider for communications, transport, data and security networks. Its network infrastructures integrate voice, video and data transport wirelessly, via copper cable and by means of fiber-optic technologies. euromicron builds its 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.