Mikron achieves further earnings growth

In a difficult environment for the Swiss export industry with the Swiss franc remaining strong and demand for capital goods weakening in the second half of the year, the Mikron Group achieved further earnings growth. Due to improved profitability, and as the balance sheet remains very sound, the Board of Directors will be proposing a distribution of CHF 0.15 per share to the Annual General Meeting (prior year: CHF 0.12).

Order intake and net sales


Demand for Mikron Group products remained healthy in 2012. Compared to the previous year, the Mikron Group increased its order intake by 5% to CHF 236.3 million (prior year: CHF 225.0 million). In terms of sales, Mikron posted a 12% rise to CHF 235.3 million (previous year: CHF 210.9 million). Adjusted for acquisitions - factoring out sales by Mikron Berlin - Mikron increased its net sales by 5%. The automotive as well as the pharmaceutical and medical devices industries are Mikron's key markets, accounting for a total of two-thirds of sales. Some 80% of orders in 2012 came from European customers, although Mikron also achieved good results in other regions during the reporting year. For example, the Automation segment acquired a number of new customers in the USA with the potential for future orders, and booked a total of 47% more orders compared with 2011. The Machining segment, which began 2012 with a strong order backlog, received significantly fewer orders in the second half of the year, resulting in falling net sales in the fourth quarter, especially in the tools business.

Profitability
Thanks to a good second half of 2012, the Mikron Group improved the EBIT by 19% to CHF 11.2 million (prior year: CHF 9.4 million) or 4.8% of sales. While the Machining business segment once again increased its profitability with an EBIT margin of 7.4%, operating profit in the Automation business segment remains unsatisfactory with a loss of CHF -1.6 million. Currency-related competitive disadvantages, delays and extra costs in some projects, and the insufficient level of capacity utilization in the first half of 2012 had a distinctly negative impact on the profitability of the Automation business.

Net earnings and shareholders' equity


Factoring in the financial results and income taxes, Mikron's net earnings for 2012 were CHF 8.5 million (prior year: CHF 7.1 million,+ 20%). The equity ratio remains very sound at 66%.

Cash flow
The Mikron Group again increased its operational cash flow in 2012, which stood at CHF 9.8 million. These funds were used during the year under review to finance infrastructure projects, the modernization of machinery, innovations, the acquisition of IMA Automation Berlin and the distribution to shareholders. Even though the company's cash and cash equivalents decreased by CHF 0.6 million during the reporting year, the Mikron Group is still essentially debt-free.

Outlook
The general economic trend remains uncertain for 2013. Mikron is anticipating stagnation in Europe together with slight growth in Asia and the USA. Furthermore, the Group assumes steady demand in the pharmaceutical and medical devices industries, with a short- to medium-term downturn in the European automotive segment. Based on the stronger order backlog in the Automation segment, Mikron expects sales in 2013 to be on a par with 2012, with a slight improvement in EBIT margin.

Media Contact:
Mikron Management AG Martin Blom Chief Financial Officer Phone +41 62 916 69 60 ir.mma@anti-cluttermikron.com

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