Mikron surpasses goals for 2011 and is cautiously optimistic going forward

Thanks to growth in its net sales, improvements in the product mix, a marked gain in productivity and further progress in risk management, Mikron improved its EBIT margin to 4.5% of net sales and its profit to CHF 7.1 million (prior year: CHF 1.6 million). Based on these strong results, the Board of Directors of the Mikron Group will be proposing a distribution of CHF 0.12 per share to the Annual General Meeting.

The automotive industry was the key driving force behind the demand for capital goods worldwide in 2011. In the medical devices and pharmaceuticals industries, by contrast, the discussions on national over-indebtedness and healthcare savings resulted in a hesitant approach to investment decisions and significant price pressure.

Order intake and net sales
The Mikron Group posted an order intake of CHF 225.0 million in 2011 (prior year: CHF 219.8 million; +2%) and met its target for growth with a 16% increase in net sales to CHF 210.9 million (prior year: CHF 182.5 million). Order backlog at the end of the year stood at a healthy CHF 95.9 million (prior year: CHF 84.2 million; +14%).

While the Machining segment posted stronger than expected growth in its order intake, which rose by 22% to a pleasing CHF 148.3 million (prior year: CHF 121.2 million), the Automation segment clearly missed the previous year’s excellent performance (CHF 99.6 million), with order intake for 2011 totaling CHF 77.1 million (-23%). The Automation segment was particularly hard hit by the currency developments experienced over the course of the year. However, it increased net sales by 10% to CHF 88.1 million (prior year: CHF 79.9 million).

Earnings performance
Despite the competitive disadvantages imposed by currency developments, Mikron succeeded overall in meeting its earnings targets for 2011. The Group raised its earnings before interest and taxes (EBIT) to CHF 9.4 million (prior year: CHF 3.1 million), and its operating result to CHF 7.4 million (prior year: CHF 0.5 million). The main contributor to this positive development was the Machining segment.

Profit and shareholders’ equity
The Mikron Group’s profit rose from CHF 1.6 million to CHF 7.1 million in 2011. This corresponds to profit per share of CHF 0.43. The Group’s financial stability is reflected in its equity ratio of 67.6%.

Cash flow
The Mikron Group succeeded in maintaining a high level of cash and cash equivalents, including current financial assets in excess of 20% of total assets in 2011. Mikron is free of net debt: cash and cash equivalents of CHF 50.0 million significantly exceed interest-bearing liabilities of just CHF 15.4 million. In the year under review free cash flow totaled CHF 0.5 million (without the purchase of the production site for Mikron Tool SA Agno), compared with CHF 13.0 million in the previous year (excluding changes in financial assets). Higher net working capital as a result of increased business volume more than compensated for the sharp improvement in profit.

Outlook
Mikron expects to generate net sales of some CHF 220 million in the 2012 financial year on the back of a good order backlog and positive signals from the customers. This figure excludes net sales from the recently acquired IMA Automation Berlin. The higher sales volume and improved productivity should generate an EBIT margin slightly superior to 2011. However, EBIT is especially susceptible to any weakening of the euro.


Contact:
Mikron Holding AG Mühlebrücke 2 2502 Biel Chairman of the Board of Directors Heinrich Spoerry Tel. 032 321 72 00 Fax 032 321 72 01 mho@mikron.com

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