05.05.2010
Annual Results for 2009-2010: Miba’s Strategy Stands the Test in the Crisis- Miba focuses on technologically sophisticated key components for future generations of drives
- Positive EBIT of EUR 16.4 million despite sharp decline in demand
- Equity ratio rises to 60.1 percent
- Miba gains market share and invests in new business segments
Miba, a strategic partner to the international engine and automotive industry, generated consolidated sales of EUR 311.8 million in the 2009-2010 business year. With earnings before interest and taxes (EBIT) of EUR 16.4 million, Miba’s performance was excellent in comparison to other companies in its sector. The new business year is off to a strong start:
- Miba takes over the British coatings specialist Teer Coatings Ltd. in April
- Miba Sinter Group opens a new site in McConnelsville, Ohio, USA in June
- Miba Bearing Group starts production of high-performance engine bearings for trucks in the USA
“The business year 2009-2010 was one of the most challenging in the history of Miba,” says Miba CEO Peter Mitterbauer. “We have proven that we can hold our own in hard times – Miba posted positive results in every quarter. At the beginning of the year we concentrated on the right things: quickly adjusting our cost structure to our customers’ call-off volumes and securing our liquidity for the long term. Our clear strategic orientation to technologically sophisticated products and technologies for the future is proving its worth.”
The first three quarters of 2009-2010 were marked by the global recession. The fourth quarter, on the other hand, showed signs of an improving economic situation. In the 2009- 2010 business year Miba generated group sales totaling EUR 311.8 million, a 16.8 percent decline from the previous year. Miba performed well in comparison to others in its industry. Thanks to quick and resolute action at the beginning of the business year, in 2009-2010, Miba was able to generate positive earnings before interest and taxes (EBIT) of EUR 16.4 million. The EBIT margin stands at 5.3 percent. Earnings before interest, taxes, depreciation and amortization (EBITDA) totaled EUR 45.6 million.
Liquidity Secures Independence
In 2009-2010, Miba particularly focused on strengthening liquidity for the long term. At EUR 50.8 million, cash and cash equivalents were significantly up from the previous year’s figure of EUR 24.6 million. Successful liquidity management is also reflected in Miba’s net cash of EUR 7.1 million as of the reporting date January 31, 2010. In comparison, the Miba Group posted net debt of EUR 19.3 million as of January 31, 2009. The equity ratio rose further, reaching 60.1 percent. This ratio underscores Miba’s robust capital structure and secures the company’s financial independence.
Growth Through Technology
Expenditures to secure and expand our technology leadership remained high. In the 2009- 2010 business year, Miba invested EUR 18.7 million in R&D despite a decrease in revenue. This represents a research budget of approximately six percent of the total sales volume. Miba focuses on the development of components for high-performance, efficient and alternative drives:
Strategically Targeted Investments
A total of EUR 19.5 million was invested within the Miba Group in production capacity and product quality (compared with EUR 43.1 million the previous year). About 72 percent of investments in the past year went to the sites in the USA and China. These investments serve the further expansion of Miba’s position in these strategically significant markets. Cash flow from operations fell to EUR 48.1 million, down from EUR 51.6 million a year earlier. This is essentially due to the decrease in operating income. Once again, Miba fully financed its capital investments out of the company’s own capital resources.
Miba Holds Onto its Core Staff
In 2009-2010, Miba had an average of 2,613 employees worldwide, compared with 2,855 the previous year. As of the reporting date of January 31, 2010, the headcount totaled 2,620 (compared with 2,825 on January 31, 2009). Staff cuts resulted from capacity adjustment measures. Personnel expenses in 2009-2010 totaled EUR 108.8 million, an 11 percent decrease from the previous year (EUR 121.7 million).
In the past five years, Miba has created approximately 750 new jobs. As a responsible employer, Miba set itself the declared goal of holding onto its qualified core staff despite the difficult months. The company reacted to the reduction in orders with a broad range of personnel policies such as reduced overtime and vacation time, educational leaves, reduced working hours and the introduction of new models for working hours. Reduced working hours were ended at the end of January 2010. Apprentice training remains highly significant: In 2009, 28 young men and women began their training as production technicians at Miba.
Miba Bearing Group Expands Sites in China and the USA
Miba Bearing Group generated revenues of EUR 132.6 million in the past year. It thus accounted for 42.4 percent of total Miba Group sales, making it the leading business unit. Targeted capital investments in research and development, the retention of qualified core staff, and the unwavering commitment to continuing strategic projects were key reasons why expenditures did not decrease to the same extent as revenue. In 2009-2010, earnings before interest, taxes, depreciation and amortization (EBITDA) totaled EUR 24.1 million (compared to EUR 33.4 million the previous year). As a leading development partner for engine bearings, the Miba Bearing Group is there where the customer needs it. Series production of large bearings for boats and high-speed ferries started successfully in China in summer 2009. Production of high-performance engine bearings for diesel truck motors starts this June in McConnelsville, Ohio, USA.
Miba Sinter Group Raises Profitability
At the end of the 2008-2009 business year, Miba Sinter Group became the first business unit hit by the effects of the financial and economic crisis. The economic stabilization measures introduced in many countries around the world (such as “cash for clunkers” programs), along with a series of new projects, made it possible for Miba Sinter Group, with revenues of EUR 125.7 million (compared to EUR 135.4 million the previous year), to post a decrease of only seven percent, relatively low in industry comparison. The consistent implementation of measures introduced ahead of schedule, such as the temporary shutdown of systems, led to an increase in profitability despite declining revenue. EBITDA improved from EUR 18.6 to 19.7 million. Miba Sinter Group is opening a new site in McConnelsville, Ohio, in June. The USA is a future market for Miba technology in the area of energy-efficient and low-emissions motors and transmissions.
Miba Friction Group Increases Research Budget
The revenue of the Miba Friction Group totaled EUR 51.1 million in 2009-2010, a 33 percent decrease from the previous year. This business unit thus generated 16.2 percent of total Miba sales. The decline in revenue was in part responsible for a negative EBITDA of EUR 0.5 million (compared to positive EBITDA of EUR 9.2 million the previous year). Despite the turbulent economic conditions, the Friction Group consistently invested in R&D. Investment accounted for seven percent of revenue in the past year.
Outlook: New Opportunities for Miba
Miba had a strong start in the 2010-2011 business year. In some segments the volume of new orders nearly reached pre-recession levels. Customers’ call-off volumes, however, are subject to major fluctuations, and the planning horizon remains very limited. “We have a good overview of the first half of the year, but at the moment it is difficult to foresee how the second half will develop,” says CEO Peter Mitterbauer. Customer cancellations on short notice increase the complexity of planning and require a high level of flexibility from the company.
“Miba is well equipped for the challenges and opportunities it confronts. A high level of technological skills, a solid liquidity base and qualified employees are the crucial factors that will enable the company to emerge from this recession in stronger shape,” Mitterbauer says. The situation on the markets abroad is positive, also in the USA. Markets such as China, India and Brazil also show major growth potential. Strategic investments in building and expanding the sites in China and the USA further strengthen Miba’s market position as a technology leader. In the area of coatings, the April takeover of the coatings specialist Teer Coatings in Droitwich, UK, has expanded Miba’s expertise and product portfolio.
In the current business year we are focusing on the topics of quality, flexibility and health. Activities in the area of Business Excellence reflect our constant efforts for high business quality. “One of Miba’s strengths is our good reputation with our customers. Customer satisfaction is a high priority and stands at the center of our relentless striving for the highest quality and reliability,” Mitterbauer concludes.
- Positive EBIT of EUR 16.4 million despite sharp decline in demand
- Equity ratio rises to 60.1 percent
- Miba gains market share and invests in new business segments
Miba, a strategic partner to the international engine and automotive industry, generated consolidated sales of EUR 311.8 million in the 2009-2010 business year. With earnings before interest and taxes (EBIT) of EUR 16.4 million, Miba’s performance was excellent in comparison to other companies in its sector. The new business year is off to a strong start:
- Miba takes over the British coatings specialist Teer Coatings Ltd. in April
- Miba Sinter Group opens a new site in McConnelsville, Ohio, USA in June
- Miba Bearing Group starts production of high-performance engine bearings for trucks in the USA
“The business year 2009-2010 was one of the most challenging in the history of Miba,” says Miba CEO Peter Mitterbauer. “We have proven that we can hold our own in hard times – Miba posted positive results in every quarter. At the beginning of the year we concentrated on the right things: quickly adjusting our cost structure to our customers’ call-off volumes and securing our liquidity for the long term. Our clear strategic orientation to technologically sophisticated products and technologies for the future is proving its worth.”
The first three quarters of 2009-2010 were marked by the global recession. The fourth quarter, on the other hand, showed signs of an improving economic situation. In the 2009- 2010 business year Miba generated group sales totaling EUR 311.8 million, a 16.8 percent decline from the previous year. Miba performed well in comparison to others in its industry. Thanks to quick and resolute action at the beginning of the business year, in 2009-2010, Miba was able to generate positive earnings before interest and taxes (EBIT) of EUR 16.4 million. The EBIT margin stands at 5.3 percent. Earnings before interest, taxes, depreciation and amortization (EBITDA) totaled EUR 45.6 million.
Liquidity Secures Independence
In 2009-2010, Miba particularly focused on strengthening liquidity for the long term. At EUR 50.8 million, cash and cash equivalents were significantly up from the previous year’s figure of EUR 24.6 million. Successful liquidity management is also reflected in Miba’s net cash of EUR 7.1 million as of the reporting date January 31, 2010. In comparison, the Miba Group posted net debt of EUR 19.3 million as of January 31, 2009. The equity ratio rose further, reaching 60.1 percent. This ratio underscores Miba’s robust capital structure and secures the company’s financial independence.
Growth Through Technology
Expenditures to secure and expand our technology leadership remained high. In the 2009- 2010 business year, Miba invested EUR 18.7 million in R&D despite a decrease in revenue. This represents a research budget of approximately six percent of the total sales volume. Miba focuses on the development of components for high-performance, efficient and alternative drives:
- Miba Bearing Group’s heavy-duty and fully lead-free engine bearing solutions are used in modern and fuel-efficient diesel motors for trucks. The features of new materials make it possible for future generations of bearings to meet stricter environmental regulations. Beyond combustion engines, the area of wind power stations offers major potential for the application of Miba engine bearings technology; the first patents are pending.
- Miba is a strong technological partner in the development of smaller, economical and energy-efficient motors and transmissions. Miba Sinter Group components for doubleclutch transmissions and servo synchronizers make a crucial difference in increasing shifting comfort and fuel economy.
- Miba Friction Group scores with its developmental know-how in the area of wind turbines. A new friction material with a higher energy load rating contributes to the improved performance of wind power stations.
- The consistent further development of functional component coatings for minimized friction also brings Miba a step closer to fulfilling our vision: No power train without Miba technology.
Strategically Targeted Investments
A total of EUR 19.5 million was invested within the Miba Group in production capacity and product quality (compared with EUR 43.1 million the previous year). About 72 percent of investments in the past year went to the sites in the USA and China. These investments serve the further expansion of Miba’s position in these strategically significant markets. Cash flow from operations fell to EUR 48.1 million, down from EUR 51.6 million a year earlier. This is essentially due to the decrease in operating income. Once again, Miba fully financed its capital investments out of the company’s own capital resources.
| 2009-10 | 2008-09 | |
| Sales (in million €) | 311.8 | 374.6 |
| EBIT (in million €) | 16.4 | 34.5 |
| EBT (in million €) | 15.5 | 30.9 |
| Investments in fixed assets (in million €) | 19.5 | 43.1 |
| Number of employees (yearly average) | 2,613 | 2,855 |
Miba Holds Onto its Core Staff
In 2009-2010, Miba had an average of 2,613 employees worldwide, compared with 2,855 the previous year. As of the reporting date of January 31, 2010, the headcount totaled 2,620 (compared with 2,825 on January 31, 2009). Staff cuts resulted from capacity adjustment measures. Personnel expenses in 2009-2010 totaled EUR 108.8 million, an 11 percent decrease from the previous year (EUR 121.7 million).
In the past five years, Miba has created approximately 750 new jobs. As a responsible employer, Miba set itself the declared goal of holding onto its qualified core staff despite the difficult months. The company reacted to the reduction in orders with a broad range of personnel policies such as reduced overtime and vacation time, educational leaves, reduced working hours and the introduction of new models for working hours. Reduced working hours were ended at the end of January 2010. Apprentice training remains highly significant: In 2009, 28 young men and women began their training as production technicians at Miba.
Miba Bearing Group Expands Sites in China and the USA
Miba Bearing Group generated revenues of EUR 132.6 million in the past year. It thus accounted for 42.4 percent of total Miba Group sales, making it the leading business unit. Targeted capital investments in research and development, the retention of qualified core staff, and the unwavering commitment to continuing strategic projects were key reasons why expenditures did not decrease to the same extent as revenue. In 2009-2010, earnings before interest, taxes, depreciation and amortization (EBITDA) totaled EUR 24.1 million (compared to EUR 33.4 million the previous year). As a leading development partner for engine bearings, the Miba Bearing Group is there where the customer needs it. Series production of large bearings for boats and high-speed ferries started successfully in China in summer 2009. Production of high-performance engine bearings for diesel truck motors starts this June in McConnelsville, Ohio, USA.
Miba Sinter Group Raises Profitability
At the end of the 2008-2009 business year, Miba Sinter Group became the first business unit hit by the effects of the financial and economic crisis. The economic stabilization measures introduced in many countries around the world (such as “cash for clunkers” programs), along with a series of new projects, made it possible for Miba Sinter Group, with revenues of EUR 125.7 million (compared to EUR 135.4 million the previous year), to post a decrease of only seven percent, relatively low in industry comparison. The consistent implementation of measures introduced ahead of schedule, such as the temporary shutdown of systems, led to an increase in profitability despite declining revenue. EBITDA improved from EUR 18.6 to 19.7 million. Miba Sinter Group is opening a new site in McConnelsville, Ohio, in June. The USA is a future market for Miba technology in the area of energy-efficient and low-emissions motors and transmissions.
Miba Friction Group Increases Research Budget
The revenue of the Miba Friction Group totaled EUR 51.1 million in 2009-2010, a 33 percent decrease from the previous year. This business unit thus generated 16.2 percent of total Miba sales. The decline in revenue was in part responsible for a negative EBITDA of EUR 0.5 million (compared to positive EBITDA of EUR 9.2 million the previous year). Despite the turbulent economic conditions, the Friction Group consistently invested in R&D. Investment accounted for seven percent of revenue in the past year.
Outlook: New Opportunities for Miba
Miba had a strong start in the 2010-2011 business year. In some segments the volume of new orders nearly reached pre-recession levels. Customers’ call-off volumes, however, are subject to major fluctuations, and the planning horizon remains very limited. “We have a good overview of the first half of the year, but at the moment it is difficult to foresee how the second half will develop,” says CEO Peter Mitterbauer. Customer cancellations on short notice increase the complexity of planning and require a high level of flexibility from the company.
“Miba is well equipped for the challenges and opportunities it confronts. A high level of technological skills, a solid liquidity base and qualified employees are the crucial factors that will enable the company to emerge from this recession in stronger shape,” Mitterbauer says. The situation on the markets abroad is positive, also in the USA. Markets such as China, India and Brazil also show major growth potential. Strategic investments in building and expanding the sites in China and the USA further strengthen Miba’s market position as a technology leader. In the area of coatings, the April takeover of the coatings specialist Teer Coatings in Droitwich, UK, has expanded Miba’s expertise and product portfolio.
In the current business year we are focusing on the topics of quality, flexibility and health. Activities in the area of Business Excellence reflect our constant efforts for high business quality. “One of Miba’s strengths is our good reputation with our customers. Customer satisfaction is a high priority and stands at the center of our relentless striving for the highest quality and reliability,” Mitterbauer concludes.
20.04.2010
Miba takes over British coating specialist Teer Coatings Ltd.- Miba expands its expertise and product portfolio in the highly specialized surface coating segment
- Teer Coatings Ltd. is one of the world's technology leaders in the area of PVD coatings
- Coating expertise is pooled within the Miba Coating Group
Miba, a strategic development partner of the international engine and automotive industry based in Laakirchen, Upper Austria, is taking over the British coating specialist Teer Coatings Ltd., Droitwich, UK, as of April.
“With the takeover of technology leader Teer Coatings we are expanding our expertise and product portfolio in the highly specialized coating segment. This is a key way to foster the innovation and competitiveness of our customers,” says Peter Mitterbauer, Chairman and CEO of the Miba Group.
In July 2009 Miba acquired a 24.9 percent interest in Teer Coatings Ltd.; now the 100 percent takeover follows.
With about 50 employees, the site in Droitwich, UK, specializes in the development and production of friction-minimizing, wear-resistant coatings. Along with small batch and special production, the site focuses on systems engineering as well as research and development. The most recent annual sales figure is approximately 4 million British pounds.
With sites in Vorchdorf, Niklasdorf and now Droitwich, UK, Miba Coating Group specializes in polymer coatings, electroplated overlays and PVD coatings. “We are an active development partner to the international automotive industry. Through the know-how of Teer Coatings we are able to provide our customers with even more comprehensive solutions in the area of friction and scuffing reduction, service life extension, and reduction of parts costs,” says Therese Mitterbauer, managing partner of High Tech Coatings in Vorchdorf.
Teer Coatings will be integrated into the Miba Group and is oriented towards profitable growth through technology leadership.
- Teer Coatings Ltd. is one of the world's technology leaders in the area of PVD coatings
- Coating expertise is pooled within the Miba Coating Group
Miba, a strategic development partner of the international engine and automotive industry based in Laakirchen, Upper Austria, is taking over the British coating specialist Teer Coatings Ltd., Droitwich, UK, as of April.
“With the takeover of technology leader Teer Coatings we are expanding our expertise and product portfolio in the highly specialized coating segment. This is a key way to foster the innovation and competitiveness of our customers,” says Peter Mitterbauer, Chairman and CEO of the Miba Group.
In July 2009 Miba acquired a 24.9 percent interest in Teer Coatings Ltd.; now the 100 percent takeover follows.
With about 50 employees, the site in Droitwich, UK, specializes in the development and production of friction-minimizing, wear-resistant coatings. Along with small batch and special production, the site focuses on systems engineering as well as research and development. The most recent annual sales figure is approximately 4 million British pounds.
With sites in Vorchdorf, Niklasdorf and now Droitwich, UK, Miba Coating Group specializes in polymer coatings, electroplated overlays and PVD coatings. “We are an active development partner to the international automotive industry. Through the know-how of Teer Coatings we are able to provide our customers with even more comprehensive solutions in the area of friction and scuffing reduction, service life extension, and reduction of parts costs,” says Therese Mitterbauer, managing partner of High Tech Coatings in Vorchdorf.
Teer Coatings will be integrated into the Miba Group and is oriented towards profitable growth through technology leadership.
11.12.2009
Miba achieves positive earnings in the first three quarters- Sales down 23.4 percent; EBIT nonetheless positive
- Tentative leveling-out of markets discernible in the third quarter
- Peak level of 140 apprentices in training at Miba
Miba, a strategic partner to the international engine and automotive industry, faced a worldwide decline in demand in its core markets in the first three quarters of 2009-2010 (February 1 to October 31, 2009): Sales totaled EUR 228.3 million, down 23.4 percent from the same period the previous year. As measures to increase efficiency and productivity proceeded full speed ahead, Miba achieved group-wide positive earnings before interest and taxes (EBIT) of EUR 5.4 million.
“We are noticing a slight leveling-out, albeit at a very low level. Miba has held its ground well up to now but we have to continue working intensely to master the crisis,” says Peter Mitterbauer, Chairman of the Board of Miba. Miba continues to place a strong emphasis on sustainable strengthening of liquidity.
Strong Liquidity
The success of intensive working capital management can be seen in reduction of inventories. Inventories were lowered by 15.6 percent in comparison to the balance sheet date (January 31, 2009). A solid equity ratio of 55.7 percent ensures Miba’s financial independence. Net indebtedness was also reduced in the first nine months, totaling EUR 3.5 million as of October 31, 2009 (compared to EUR 19.3 million on the balance sheet date, January 31, 2009).
At EUR 29.4 million, operative cash flow lies well below the previous year’s figure (EUR 52.3 million), but is a positive sign in view of the drop in earnings. Capital expenditures (excluding financial investments) in the first three quarters of 2009-2010 totaled EUR 10.8 million and focused in large part on the development of the sinter site in the USA.
As of October 31, 2009, Miba had 2,621 employees worldwide. This figure represents a reduction of 10.6 percent or 311 employees in comparison to the previous year. The number of employees was reduced largely through expiration of temporary employment contracts at sites in Slovakia and non-replacement of departing employees.
At Miba sites in Austria personnel measures such as reduced working hours and educational leave were systematically continued in the third quarter. As of the reporting date there were 1,577 employees at the Austrian production and technology sites, a figure that represents 60 percent of Miba staff worldwide.
As a responsible long-term employer Miba is committed to training young people, even in economically challenging times. We place great importance on apprentice training, which we develop systematically. By investing in the qualified specialists of tomorrow, the company ensures junior staff from within its own ranks. As of October 31, 2009, Miba reported a new peak of 140 apprentices in training (compared to 131 apprentices the previous year).
Miba Bearing Group
As a development partner and supplier to the international heavy-duty engine market, Miba Bearing Group continues to face declining demand in its markets. Miba Bearing Group sales for the reporting period totaled EUR 100 million, down 17.4 percent or EUR 21.0 million from the same period the previous year. Demand is expected to drop further as the economic recession belatedly arrives in specific subdivisions of this segment. Capital expenditures totaled EUR 1.9 million, well below the previous year's level, and are being used primarily for the expansion of the sites in China and the USA.
Miba Sinter Group
As a supplier to the automotive industry the Miba Sinter Group is strongly affected by the worldwide economic crisis. Sales in the first nine months totaled EUR 89.9 million, down 20.4 percent from the same period in 2008-2009. This segment has shown slight tendencies towards recovery in recent months, with third quarter sales returning to the previous year’s level. It remains to be seen, however, whether this development will prove sustainable. As government programs such as “cash for clunkers“ incentives come to an end, demand will presumably decline again. The establishment of the US sinter site headquartered in McConnelsville, Ohio is forging ahead quickly. The capital expenditures of the Miba Sinter Group, totaling EUR 7.5 million (EUR 14.6 million the previous year), focused primarily on this site.
Miba Friction Group
Miba Friction Group is the segment confronted with the most severe decline in demand. There is not yet any evidence of stabilization in its target markets. Sales totaled EUR 35.7 million, down 41.0 percent from the same period the previous year. Negative earnings before interest and taxes (EBIT) of EUR -7.5 million resulted primarily from a massive decline in sales. Additionally, earnings were adversely affected by goodwill amortization of EUR 1.4 million in accordance with IAS 36 in the Slovak and American subsidiaries. This was necessary due to the continuing poor general economic conditions. Capital expenditures totaling EUR 1.1 million (EUR 2.9 million in the previous year) primarily financed measures to improve productivity.
Tentative leveling-out discernible
Although some sectors and countries show a slight leveling-out, a sustainable recovery cannot yet be assumed. Call-offs at short notice by major customers reflect the ongoing, prevailing uncertainty in Miba's target markets and make it difficult to reliably forecast the further economic development of Miba Group.
The Miba Management Board continues to assume that group sales for the current business year will lie about 20 to 25 percent below sales for business year 2008-2009. Nonetheless, a rapid and goal-oriented structural adaptation to quickly changing business conditions enabled Miba to perform comparatively well.
- Tentative leveling-out of markets discernible in the third quarter
- Peak level of 140 apprentices in training at Miba
Miba, a strategic partner to the international engine and automotive industry, faced a worldwide decline in demand in its core markets in the first three quarters of 2009-2010 (February 1 to October 31, 2009): Sales totaled EUR 228.3 million, down 23.4 percent from the same period the previous year. As measures to increase efficiency and productivity proceeded full speed ahead, Miba achieved group-wide positive earnings before interest and taxes (EBIT) of EUR 5.4 million.
“We are noticing a slight leveling-out, albeit at a very low level. Miba has held its ground well up to now but we have to continue working intensely to master the crisis,” says Peter Mitterbauer, Chairman of the Board of Miba. Miba continues to place a strong emphasis on sustainable strengthening of liquidity.
Strong Liquidity
The success of intensive working capital management can be seen in reduction of inventories. Inventories were lowered by 15.6 percent in comparison to the balance sheet date (January 31, 2009). A solid equity ratio of 55.7 percent ensures Miba’s financial independence. Net indebtedness was also reduced in the first nine months, totaling EUR 3.5 million as of October 31, 2009 (compared to EUR 19.3 million on the balance sheet date, January 31, 2009).
At EUR 29.4 million, operative cash flow lies well below the previous year’s figure (EUR 52.3 million), but is a positive sign in view of the drop in earnings. Capital expenditures (excluding financial investments) in the first three quarters of 2009-2010 totaled EUR 10.8 million and focused in large part on the development of the sinter site in the USA.
| Q1-Q3 2009-2010 | Q1-Q3 2008-2009 | |
| Sales (in million €) | 228.3 | 298.0 |
| EBIT (in million €) | 5.4 | 32.4 |
| Capital expenditures (excluding financial investments) (in million €) | 10.8 | 32.8 |
| Number of employees (as of October 31) | 2,621 | 2,932 |
As of October 31, 2009, Miba had 2,621 employees worldwide. This figure represents a reduction of 10.6 percent or 311 employees in comparison to the previous year. The number of employees was reduced largely through expiration of temporary employment contracts at sites in Slovakia and non-replacement of departing employees.
At Miba sites in Austria personnel measures such as reduced working hours and educational leave were systematically continued in the third quarter. As of the reporting date there were 1,577 employees at the Austrian production and technology sites, a figure that represents 60 percent of Miba staff worldwide.
As a responsible long-term employer Miba is committed to training young people, even in economically challenging times. We place great importance on apprentice training, which we develop systematically. By investing in the qualified specialists of tomorrow, the company ensures junior staff from within its own ranks. As of October 31, 2009, Miba reported a new peak of 140 apprentices in training (compared to 131 apprentices the previous year).
Miba Bearing Group
As a development partner and supplier to the international heavy-duty engine market, Miba Bearing Group continues to face declining demand in its markets. Miba Bearing Group sales for the reporting period totaled EUR 100 million, down 17.4 percent or EUR 21.0 million from the same period the previous year. Demand is expected to drop further as the economic recession belatedly arrives in specific subdivisions of this segment. Capital expenditures totaled EUR 1.9 million, well below the previous year's level, and are being used primarily for the expansion of the sites in China and the USA.
Miba Sinter Group
As a supplier to the automotive industry the Miba Sinter Group is strongly affected by the worldwide economic crisis. Sales in the first nine months totaled EUR 89.9 million, down 20.4 percent from the same period in 2008-2009. This segment has shown slight tendencies towards recovery in recent months, with third quarter sales returning to the previous year’s level. It remains to be seen, however, whether this development will prove sustainable. As government programs such as “cash for clunkers“ incentives come to an end, demand will presumably decline again. The establishment of the US sinter site headquartered in McConnelsville, Ohio is forging ahead quickly. The capital expenditures of the Miba Sinter Group, totaling EUR 7.5 million (EUR 14.6 million the previous year), focused primarily on this site.
Miba Friction Group
Miba Friction Group is the segment confronted with the most severe decline in demand. There is not yet any evidence of stabilization in its target markets. Sales totaled EUR 35.7 million, down 41.0 percent from the same period the previous year. Negative earnings before interest and taxes (EBIT) of EUR -7.5 million resulted primarily from a massive decline in sales. Additionally, earnings were adversely affected by goodwill amortization of EUR 1.4 million in accordance with IAS 36 in the Slovak and American subsidiaries. This was necessary due to the continuing poor general economic conditions. Capital expenditures totaling EUR 1.1 million (EUR 2.9 million in the previous year) primarily financed measures to improve productivity.
Tentative leveling-out discernible
Although some sectors and countries show a slight leveling-out, a sustainable recovery cannot yet be assumed. Call-offs at short notice by major customers reflect the ongoing, prevailing uncertainty in Miba's target markets and make it difficult to reliably forecast the further economic development of Miba Group.
The Miba Management Board continues to assume that group sales for the current business year will lie about 20 to 25 percent below sales for business year 2008-2009. Nonetheless, a rapid and goal-oriented structural adaptation to quickly changing business conditions enabled Miba to perform comparatively well.
11.09.2009
First Half of 2009-2010: Miba stands the test despite difficult market environment- Positive EBIT in spite of sharp declines in demand in the first half of the year
- Order situation stabilizes at low level in the second quarter
- Thirty new apprentices in September
Miba, strategic partner to the international engine and automotive industry, faced sharp drops in demand in its core markets in the first half of fiscal year 2009-2010 (February 1 to July 31). Group sales fell to 148.5 million euros, a 26 percent decline compared with the excellent results in the prior-year period. As the result of measures introduced early on at all locations, Miba was able to achieve a positive result contrary to industry trends, posting earnings before interest and taxes (EBIT) of 2.4 million euros.
"Incoming orders stabilized in the course of the second quarter at a much lower level. But it would be premature to interpret this as a sign that the crisis is over”, points out Peter Mitterbauer, Miba's CEO. Despite the difficult market environment, Miba has held its own because of its clear strategic focus on high-tech, heavy-duty powertrain components.
Boosting liquidity over the long term
The focus in times like these is on sustained liquidity enhancement. Net indebtedness was reduced by more than half in the first six months of this year – to 9.3 million euros. Cash flow from operations totaled 21.6 million euros, about 30% below the previous year's figure (31.6 million euros), but is a positive sign given the sharp drop in earnings. Capital expenditures came to 7.9 million euros in the first half of 2009-2010.
The equity ratio of 57.6 percent is only slightly below the balance sheet date figure on January 31, 2009 (57.9 percent). Adequate liquidity, low net indebtedness and a solid equity ratio ensure the financial autonomy and independence of Miba AG.
Miba AG had a total of 2,541 employees worldwide as of July 31, 2009. This represents a decrease of 313 employees or 11 percent compared with the headcount a year earlier. The reduction in employees affected the Slovakian locations primarily. At the Austrian plants, personnel measures such as reduced working hours or educational leaves are being systematically continued. At the end of July 2009, there were 1,583 employees at the Austrian sites (compared with 1,655 employees a year earlier).
Miba's goal as a long-term and responsible employer is to retain most of its qualified permanent staff through flexible work schedules and salary models.
Even in economically challenging times, Miba is giving young people good prospects for the future by providing first-class training: it took on around 30 new apprentices at its Laakirchen, Vorchdorf and Roitham plants in September.
Miba Bearing Group
Miba Bearing Group sales for the reporting period totaled 67.3 million euros, down 14 percent from the same period the previous year. Miba Bearing Group accounts for 45.3 percent of group sales. The weak demand is typical of all of this segment's target markets – from commercial vehicles to ships to locomotives. Capital expenditures totaled 2.7 million euros, well below the previous year's level, and are being used primarily for expansion of the plant in China. Production of large bearings was started up at this facility towards the end of the second quarter. Standard production will begin in the fall in order to be able to best meet local demand.
Miba Sinter Group
A wide range of government programs such as the "cash for clunkers" programs in Western Europe have stimulated positive demand. Miba Sinter Group has profited from this development. Sales in the second quarter rose by about 12 percent over the first quarter. Nonetheless, sales for the first six months totaled 56.0 million euros, which was still 29 percent below the prior-year level. Miba Sinter Group accounted for 37.7 percent of group sales. Capital investment totaled 4.2 million euros (down from 12.0 million a year earlier) and focused primarily on expansion of the U.S. sintering plant in McConnelsville, Ohio.
For the second year in a row, Miba Sinter Group received the "Supplier of the Year" award from ixetic, a leading manufacturer of vacuum and hydraulic pumps for the auto industry.
Miba Friction Group
Miba Friction Group continues to be the segment most affected by the economic crisis and has faced a dramatic decline in demand. This has had a significant adverse effect on sales and earnings. The business unit posted sales of 23.5 million euros in the first half of the year, 42 percent below the figure for the comparable period in 2008-2009. Active efforts to counteract decreased demand in core markets involve shutting down production capacities temporarily and extending short-time work schedules at the Roitham location until the end of the year. Miba Friction Group accounted for 15.8 percent of group sales.
Stronger post-recession position
The prevailing uncertainty in Miba's target markets makes it difficult to reliably forecast future economic development. However, the business trend in the first half year and our customers' current release volumes indicate that the sales level in fiscal year 2009-2010 will be about 20 to 25 percent lower than in 2008-2009. By expanding and maintaining product and technology leadership in its core segments, Miba will emerge from this deep recession in a stronger position.
- Order situation stabilizes at low level in the second quarter
- Thirty new apprentices in September
Miba, strategic partner to the international engine and automotive industry, faced sharp drops in demand in its core markets in the first half of fiscal year 2009-2010 (February 1 to July 31). Group sales fell to 148.5 million euros, a 26 percent decline compared with the excellent results in the prior-year period. As the result of measures introduced early on at all locations, Miba was able to achieve a positive result contrary to industry trends, posting earnings before interest and taxes (EBIT) of 2.4 million euros.
"Incoming orders stabilized in the course of the second quarter at a much lower level. But it would be premature to interpret this as a sign that the crisis is over”, points out Peter Mitterbauer, Miba's CEO. Despite the difficult market environment, Miba has held its own because of its clear strategic focus on high-tech, heavy-duty powertrain components.
Boosting liquidity over the long term
The focus in times like these is on sustained liquidity enhancement. Net indebtedness was reduced by more than half in the first six months of this year – to 9.3 million euros. Cash flow from operations totaled 21.6 million euros, about 30% below the previous year's figure (31.6 million euros), but is a positive sign given the sharp drop in earnings. Capital expenditures came to 7.9 million euros in the first half of 2009-2010.
The equity ratio of 57.6 percent is only slightly below the balance sheet date figure on January 31, 2009 (57.9 percent). Adequate liquidity, low net indebtedness and a solid equity ratio ensure the financial autonomy and independence of Miba AG.
| First Half of 2009-2010 | First Half of 2008-2009 | |
| Sales (in million €) | 148.5 | 199.7 |
| EBIT (in million €) | 2.4 | 23.6 |
| Capital expenditures (in million €) | 7.9 | 25.9 |
| Number of employees (as of July 31) | 2,541 | 2,854 |
Miba AG had a total of 2,541 employees worldwide as of July 31, 2009. This represents a decrease of 313 employees or 11 percent compared with the headcount a year earlier. The reduction in employees affected the Slovakian locations primarily. At the Austrian plants, personnel measures such as reduced working hours or educational leaves are being systematically continued. At the end of July 2009, there were 1,583 employees at the Austrian sites (compared with 1,655 employees a year earlier).
Miba's goal as a long-term and responsible employer is to retain most of its qualified permanent staff through flexible work schedules and salary models.
Even in economically challenging times, Miba is giving young people good prospects for the future by providing first-class training: it took on around 30 new apprentices at its Laakirchen, Vorchdorf and Roitham plants in September.
Miba Bearing Group
Miba Bearing Group sales for the reporting period totaled 67.3 million euros, down 14 percent from the same period the previous year. Miba Bearing Group accounts for 45.3 percent of group sales. The weak demand is typical of all of this segment's target markets – from commercial vehicles to ships to locomotives. Capital expenditures totaled 2.7 million euros, well below the previous year's level, and are being used primarily for expansion of the plant in China. Production of large bearings was started up at this facility towards the end of the second quarter. Standard production will begin in the fall in order to be able to best meet local demand.
Miba Sinter Group
A wide range of government programs such as the "cash for clunkers" programs in Western Europe have stimulated positive demand. Miba Sinter Group has profited from this development. Sales in the second quarter rose by about 12 percent over the first quarter. Nonetheless, sales for the first six months totaled 56.0 million euros, which was still 29 percent below the prior-year level. Miba Sinter Group accounted for 37.7 percent of group sales. Capital investment totaled 4.2 million euros (down from 12.0 million a year earlier) and focused primarily on expansion of the U.S. sintering plant in McConnelsville, Ohio.
For the second year in a row, Miba Sinter Group received the "Supplier of the Year" award from ixetic, a leading manufacturer of vacuum and hydraulic pumps for the auto industry.
Miba Friction Group
Miba Friction Group continues to be the segment most affected by the economic crisis and has faced a dramatic decline in demand. This has had a significant adverse effect on sales and earnings. The business unit posted sales of 23.5 million euros in the first half of the year, 42 percent below the figure for the comparable period in 2008-2009. Active efforts to counteract decreased demand in core markets involve shutting down production capacities temporarily and extending short-time work schedules at the Roitham location until the end of the year. Miba Friction Group accounted for 15.8 percent of group sales.
Stronger post-recession position
The prevailing uncertainty in Miba's target markets makes it difficult to reliably forecast future economic development. However, the business trend in the first half year and our customers' current release volumes indicate that the sales level in fiscal year 2009-2010 will be about 20 to 25 percent lower than in 2008-2009. By expanding and maintaining product and technology leadership in its core segments, Miba will emerge from this deep recession in a stronger position.
31.07.2009
Miba AG Completes Share Buyback Program 2 2008-09- Volume bought back: 6,229 shares
- Average price: 91.08 euros
Miba AG has successfully completed its share buyback program 2 2008-09. Between October 27, 2008 and July 31, 2009 6,229 own shares, i.e. 0.4792 % of the capital stock, were bought back at an average price of 91.08 euros. In total Miba AG invested 567 thousand euros in the program.
- Average price: 91.08 euros
Miba AG has successfully completed its share buyback program 2 2008-09. Between October 27, 2008 and July 31, 2009 6,229 own shares, i.e. 0.4792 % of the capital stock, were bought back at an average price of 91.08 euros. In total Miba AG invested 567 thousand euros in the program.
19.06.2009
Miba Reduces Dividend from 3.30 to 3.00 Euros per Share The General Meeting of Miba AG today decided to distribute a dividend of 3.00 euros
per share (previous year 3.30 euros) for the fiscal year 2008-09. Based on the share
price at the balance sheet date (January 31, 2009), this represents a dividend yield of
4.3 percent.
The 23rd Annual General Meeting held on June 19, 2009 decided to distribute a dividend of 3.00 euros per common and preferred share for the fiscal year 2008-09 (as at January 31, 2009). By reducing the dividend from 3.30 to 3.00 euros per share – despite significantly improved results for fiscal year 2008-09 – Miba is taking the general economic situation into account. In addition, it underscores the company's continuity in paying dividends and gives shareholders an appropriate return on the capital they have invested. June 29, 2009 was set as the date of payment for the dividend.
Dr. Wolfgang Berndt, whose term had expired, was elected to the Supervisory Board for another five years at the Annual General Meeting.
The 23rd Annual General Meeting held on June 19, 2009 decided to distribute a dividend of 3.00 euros per common and preferred share for the fiscal year 2008-09 (as at January 31, 2009). By reducing the dividend from 3.30 to 3.00 euros per share – despite significantly improved results for fiscal year 2008-09 – Miba is taking the general economic situation into account. In addition, it underscores the company's continuity in paying dividends and gives shareholders an appropriate return on the capital they have invested. June 29, 2009 was set as the date of payment for the dividend.
Dr. Wolfgang Berndt, whose term had expired, was elected to the Supervisory Board for another five years at the Annual General Meeting.