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.
10.06.2009
First Quarter 2009-2010: Miba experiences sharp drop in demand - Significant declines in sales and earnings
- Focus on strengthening liquidity
Miba, strategic partner to the international engine and automotive industry, has not been able to avoid the decline in demand in its target markets. Group sales revenue fell to 74.3 million euros in the first quarter of 2009-2010 (February 1 to April 30), a 27 percent decrease compared with the prior-year period. Because of steps taken early on at all locations, earnings before interest and taxes (EBIT) still totaled 1.2 million euros, a positive result.
“In times like these it is extremely important to strengthen liquidity,” points out Peter Mitterbauer, Miba’s CEO. Because of strategic management of working capital, cash flow in the reporting period rose to 10.9 million euros (up from 0.6 million euros a year earlier). Net debt was reduced to 13.3 million euros, down from 19.3 million euros. The equity ratio climbed to 58.2 percent from 57.9 percent as of the last reporting date. This development guarantees the financial autonomy and independence of the Miba Group.
Capital expenditures totaled 5.1 million euros (compared with 11.3 million euros a year earlier) and focused strategically on strengthening Miba’s competitive position in high-tech and economically attractive market segments.
As of the reporting date (April 30, 2009), the Miba Group had 2,633 employees worldwide. This represents a decrease of 180 employees or 6.4 percent compared with the same date the previous year. The reduction in employees affected the Slovakian locations primarily. At the Austrian plants, comprehensive human resources adjustments were made. They range from the systematic reduction of vacation time and working time accounts to a reduction in the workforce, especially in the number of temporary workers. Because of the continuing market weakness, short-time working hours were introduced at all the Austrian locations. As of the quarterly reporting date, there were 1,650 employees at the Austrian sites.
Sales and R&D activities will be strengthened
Given the current economic conditions, the beginning of fiscal year 2009-2010 has proved to be a great challenge for Miba. From the current perspective, it is not yet possible to assume that the target markets will settle down or stabilize.
In this difficult market environment, Miba will continue to rely on competitive cost structures and place great value on a solid liquidity base and a highly qualified workforce so that it will emerge from this deep recession in stronger shape. The focus in 2009-2010 will be on strengthening sales and R&D activities in order to safeguard Miba’s product and technology leadership in its core sectors over the long term.
- Focus on strengthening liquidity
Miba, strategic partner to the international engine and automotive industry, has not been able to avoid the decline in demand in its target markets. Group sales revenue fell to 74.3 million euros in the first quarter of 2009-2010 (February 1 to April 30), a 27 percent decrease compared with the prior-year period. Because of steps taken early on at all locations, earnings before interest and taxes (EBIT) still totaled 1.2 million euros, a positive result.
“In times like these it is extremely important to strengthen liquidity,” points out Peter Mitterbauer, Miba’s CEO. Because of strategic management of working capital, cash flow in the reporting period rose to 10.9 million euros (up from 0.6 million euros a year earlier). Net debt was reduced to 13.3 million euros, down from 19.3 million euros. The equity ratio climbed to 58.2 percent from 57.9 percent as of the last reporting date. This development guarantees the financial autonomy and independence of the Miba Group.
Capital expenditures totaled 5.1 million euros (compared with 11.3 million euros a year earlier) and focused strategically on strengthening Miba’s competitive position in high-tech and economically attractive market segments.
| 1st Quarter 2009-2010 | 1st Quarter 2008-2009 | |
| Sales (in million €) | 74.3 | 102.2 |
| EBIT (in million €) | 1.2 | 13.3 |
| Capital expenditures (in million €) | 5.1 | 11.3 |
| Number of employees (as of April 30, 2009) | 2,633 | 2,813 |
As of the reporting date (April 30, 2009), the Miba Group had 2,633 employees worldwide. This represents a decrease of 180 employees or 6.4 percent compared with the same date the previous year. The reduction in employees affected the Slovakian locations primarily. At the Austrian plants, comprehensive human resources adjustments were made. They range from the systematic reduction of vacation time and working time accounts to a reduction in the workforce, especially in the number of temporary workers. Because of the continuing market weakness, short-time working hours were introduced at all the Austrian locations. As of the quarterly reporting date, there were 1,650 employees at the Austrian sites.
Sales and R&D activities will be strengthened
Given the current economic conditions, the beginning of fiscal year 2009-2010 has proved to be a great challenge for Miba. From the current perspective, it is not yet possible to assume that the target markets will settle down or stabilize.
In this difficult market environment, Miba will continue to rely on competitive cost structures and place great value on a solid liquidity base and a highly qualified workforce so that it will emerge from this deep recession in stronger shape. The focus in 2009-2010 will be on strengthening sales and R&D activities in order to safeguard Miba’s product and technology leadership in its core sectors over the long term.
07.05.2009
Annual Results for 2008-2009: Miba Holds Its Own in a Year of Extremes- Organic sales growth despite sharp decline in demand in the fourth quarter
- EBIT margin increases to 9.2% from 7.1%
- Focus is on strengthening sales and R&D activities in 2009-2010
Miba, a strategic partner to the international engine and automotive industry, generated consolidated sales of 374.6 million euros in 2008-2009. This represents a 2.1 percent increase over the previous year in comparable terms – after adjustment for the sales loss resulting from the disposal of the Spanish site – despite a sharp drop in demand in the fourth quarter. Earnings before interest and taxes (EBIT) rose by 25% to 34.5 million euros, substantially outstripping the sales increase.
“The 2008-2009 business year will be remembered as a year of extraordinary change,” notes Peter Mitterbauer, Miba’s Chairman and CEO. “New orders reached record levels up through late summer. But when the financial crisis spread to the real economy in the fourth quarter, Miba’s target markets declined with unprecedented intensity and speed.”
Miba responded to this trend early on by positioning itself clearly and strategically as a supplier of technologically sophisticated products and by insisting on cost efficiency in all areas. As a result of these quick actions, the company was able to improve its performance in 2008-2009 in spite of economic developments. The EBIT margin increased to 9.2%, up from 7.1% a year earlier. Approximately 19 million euros was spent on research and development in order to maintain and expand Miba’s technology leadership.
Investments at a Record Level
A total of 43.1 million euros was invested within the Miba Group in production capacity and product quality (compared with 36 million euros in 2007-2008). Of this amount, 30 million euros was invested in Miba’s Austrian facilities.
Cash flow from operations rose to 61.4 million euros, up from 53.6 million euros a year earlier. This is essentially the result of an increase in operating income. This meant that investments could again be fully financed out of the company’s own capital resources. The 57.9% equity ratio underscores Miba’s solid capital structure and guarantees financial independence.
Miba had an average of 2,855 employees worldwide in 2008-2009, compared with 2,706 the previous year. As of January 31, 2009, the reporting date, the headcount totaled 2,825 (up from 2,730 on January 31, 2008). The increase in personnel was chiefly the result of capacity expansion measures in the first quarter and affected Miba’s Austrian sites primarily. The pronounced deterioration in the economic climate that began in the fall of 2008 made it necessary to adjust capacities to the market environment very quickly. Comprehensive human resources adjustments ranged from the systematic reduction of vacation and overtime credits to workforce reduction focusing specifically on temporary workers. Short- time working hours were subsequently introduced at the plants in Vorchdorf and Roitham, although this occurred after the reporting date.
Miba Bearing Group: The Leading Business Unit for the First Time
Miba Bearing Group finished the business year with another record sales figure totaling 160.4 million euros. It generated 42.6% of total Miba Group sales and was therefore the leading business unit for the first time ever. In target sectors such as heavy-duty commercial vehicles and ships, the order levels reached all-time highs due to the huge demand for transport capacities. Capacity bottlenecks at all of Miba Bearing Group’s sites were a defining feature in 2008-2009. To counter this trend, capital investment increased to 20.8 million euros from 11.9 million the previous year.
Miba Sinter Group Feels Impact of Slowdown in Automotive Industry
In accordance with the general economic trend, Miba Sinter Group experienced very encouraging growth on into the late summer, posting higher figures up to that point than in the same period a year earlier. But with the slowdown in the automotive industry in the fall, customer call-offs began to decline significantly. Because of the sharp drop in demand in the fourth quarter, Miba Sinter Group sales in 2008-2009 totaled 135.4 million euros, falling below the prior-year level (160 million euros) and accounting for 36% of total Miba Group sales revenues. After adjustment for the sintering plant in Spain, which was sold in business year 2007-2008, the sales deficit was approximately 3%. The drop in demand that began in the fall led immediately to the implementation of comprehensive action plans at all sintering locations. This primarily involved adjusting production capacities through temporary plant shutdowns.
Miba Friction Group Boosts Sales by 9%
In spite of a weak fourth quarter, Miba Friction Group sales rose to 76.5 million euros, an increase of about 9%. This business unit thus generated 20.2% percent of total Miba sales. Although there was healthy growth in demand in the agricultural equipment sector throughout the year, sharp declines were posted in the automotive and construction equipment segments as the year drew to a close.
Outlook: Surviving the Crisis with Permanent Staff
Given the current economic conditions, the beginning of 2009-2010 has proved to be a challenge for Miba. Despite the billions in economic stimulus packages in the industrialized countries, Miba’s core markets are not yet reinvigorated. Current call-off volumes are significantly below the prior-year level, depending on the target market and customer, and indicate that the sales level will be 25% lower than in 2008-2009. It is not possible from today’s perspective to give a reliable estimate of growth during the current fiscal year. In addition, the tendency towards short-term call-offs on the part of Miba’s customers increases the complexity of corporate planning. Miba assumes that there will not be a substantial improvement until 2010 at the earliest.
Miba has made early preparations in all business units for a demanding market environment. Competitive cost structures, a solid liquidity base, and highly qualified employees are the crucial factors that will enable the company emerge from this recession in stronger shape. The goal is to be able to retain most of the permanent staff through flexible work schedules and salary models. 4
The focus in 2009-2010 will be on strengthening sales and R&D activities in order to safeguard Miba’s product and technology leadership in its core sectors over the long term. With its research focus on high-performance, safe and environmentally friendly power train technologies, Miba is effectively geared to its customers’ requirements.
- EBIT margin increases to 9.2% from 7.1%
- Focus is on strengthening sales and R&D activities in 2009-2010
Miba, a strategic partner to the international engine and automotive industry, generated consolidated sales of 374.6 million euros in 2008-2009. This represents a 2.1 percent increase over the previous year in comparable terms – after adjustment for the sales loss resulting from the disposal of the Spanish site – despite a sharp drop in demand in the fourth quarter. Earnings before interest and taxes (EBIT) rose by 25% to 34.5 million euros, substantially outstripping the sales increase.
“The 2008-2009 business year will be remembered as a year of extraordinary change,” notes Peter Mitterbauer, Miba’s Chairman and CEO. “New orders reached record levels up through late summer. But when the financial crisis spread to the real economy in the fourth quarter, Miba’s target markets declined with unprecedented intensity and speed.”
Miba responded to this trend early on by positioning itself clearly and strategically as a supplier of technologically sophisticated products and by insisting on cost efficiency in all areas. As a result of these quick actions, the company was able to improve its performance in 2008-2009 in spite of economic developments. The EBIT margin increased to 9.2%, up from 7.1% a year earlier. Approximately 19 million euros was spent on research and development in order to maintain and expand Miba’s technology leadership.
Investments at a Record Level
A total of 43.1 million euros was invested within the Miba Group in production capacity and product quality (compared with 36 million euros in 2007-2008). Of this amount, 30 million euros was invested in Miba’s Austrian facilities.
| 2008-09 | 2007-08 | |
| Sales | 374.6 | 387.7 |
| EBIT (in million €) | 34.5 | 27.6 |
| EBT (in million €) | 30.9 | 24.6 |
| Investments in fixed assets (in million €) | 43.1 | 36.0 |
| Number of employees (yearly average) | 2,855 | 2,706 |
Cash flow from operations rose to 61.4 million euros, up from 53.6 million euros a year earlier. This is essentially the result of an increase in operating income. This meant that investments could again be fully financed out of the company’s own capital resources. The 57.9% equity ratio underscores Miba’s solid capital structure and guarantees financial independence.
Miba had an average of 2,855 employees worldwide in 2008-2009, compared with 2,706 the previous year. As of January 31, 2009, the reporting date, the headcount totaled 2,825 (up from 2,730 on January 31, 2008). The increase in personnel was chiefly the result of capacity expansion measures in the first quarter and affected Miba’s Austrian sites primarily. The pronounced deterioration in the economic climate that began in the fall of 2008 made it necessary to adjust capacities to the market environment very quickly. Comprehensive human resources adjustments ranged from the systematic reduction of vacation and overtime credits to workforce reduction focusing specifically on temporary workers. Short- time working hours were subsequently introduced at the plants in Vorchdorf and Roitham, although this occurred after the reporting date.
Miba Bearing Group: The Leading Business Unit for the First Time
Miba Bearing Group finished the business year with another record sales figure totaling 160.4 million euros. It generated 42.6% of total Miba Group sales and was therefore the leading business unit for the first time ever. In target sectors such as heavy-duty commercial vehicles and ships, the order levels reached all-time highs due to the huge demand for transport capacities. Capacity bottlenecks at all of Miba Bearing Group’s sites were a defining feature in 2008-2009. To counter this trend, capital investment increased to 20.8 million euros from 11.9 million the previous year.
Miba Sinter Group Feels Impact of Slowdown in Automotive Industry
In accordance with the general economic trend, Miba Sinter Group experienced very encouraging growth on into the late summer, posting higher figures up to that point than in the same period a year earlier. But with the slowdown in the automotive industry in the fall, customer call-offs began to decline significantly. Because of the sharp drop in demand in the fourth quarter, Miba Sinter Group sales in 2008-2009 totaled 135.4 million euros, falling below the prior-year level (160 million euros) and accounting for 36% of total Miba Group sales revenues. After adjustment for the sintering plant in Spain, which was sold in business year 2007-2008, the sales deficit was approximately 3%. The drop in demand that began in the fall led immediately to the implementation of comprehensive action plans at all sintering locations. This primarily involved adjusting production capacities through temporary plant shutdowns.
Miba Friction Group Boosts Sales by 9%
In spite of a weak fourth quarter, Miba Friction Group sales rose to 76.5 million euros, an increase of about 9%. This business unit thus generated 20.2% percent of total Miba sales. Although there was healthy growth in demand in the agricultural equipment sector throughout the year, sharp declines were posted in the automotive and construction equipment segments as the year drew to a close.
Outlook: Surviving the Crisis with Permanent Staff
Given the current economic conditions, the beginning of 2009-2010 has proved to be a challenge for Miba. Despite the billions in economic stimulus packages in the industrialized countries, Miba’s core markets are not yet reinvigorated. Current call-off volumes are significantly below the prior-year level, depending on the target market and customer, and indicate that the sales level will be 25% lower than in 2008-2009. It is not possible from today’s perspective to give a reliable estimate of growth during the current fiscal year. In addition, the tendency towards short-term call-offs on the part of Miba’s customers increases the complexity of corporate planning. Miba assumes that there will not be a substantial improvement until 2010 at the earliest.
Miba has made early preparations in all business units for a demanding market environment. Competitive cost structures, a solid liquidity base, and highly qualified employees are the crucial factors that will enable the company emerge from this recession in stronger shape. The goal is to be able to retain most of the permanent staff through flexible work schedules and salary models. 4
The focus in 2009-2010 will be on strengthening sales and R&D activities in order to safeguard Miba’s product and technology leadership in its core sectors over the long term. With its research focus on high-performance, safe and environmentally friendly power train technologies, Miba is effectively geared to its customers’ requirements.
12.02.2009
Miba Adjusts Capacity to Accommodate Weak Market- Significant drop in demands in the automotive sector
- Personnel measures, reduced working hours in Vorchdorf as of mid February
- Goal: To get through the crises while retaining all permanent workers
Miba, a strategic partner to the international engine and automotive industry, is preparing itself for difficult months ahead. The tense economic situation is especially hard on the automotive industry − which, with around 40 percent of group revenue, is one of Miba's core markets. Significant drops in demand are the result. "Long-term corporate planning is difficult in the current order situation", says CEO Peter Mitterbauer.
Miba is reacting to the weak market by adjusting their capacity in the affected areas and making it more flexible. Measures that have already been put into place include using up residual holidays, reducing overtime and excess hours and also cutting back on the use of temporary workers and educational leave. Employees in Austria will also be moved to other locations as needed. As of mid February, the 320 employees at Miba Sinter Austria in Vorchdorf will go on reduced working hours. This is a fifth of the employees employed at Miba in Austria. For four weeks, the affected employees will work on average 25% less with a pay reduction of approximately 10%.
"Miba currently has 1600 employees in Austria. Our goal is to get through these difficult times while retaining our permanent staff as these are the trained employees that we will need for the upcoming recovery", says Mitterbauer.
- Personnel measures, reduced working hours in Vorchdorf as of mid February
- Goal: To get through the crises while retaining all permanent workers
Miba, a strategic partner to the international engine and automotive industry, is preparing itself for difficult months ahead. The tense economic situation is especially hard on the automotive industry − which, with around 40 percent of group revenue, is one of Miba's core markets. Significant drops in demand are the result. "Long-term corporate planning is difficult in the current order situation", says CEO Peter Mitterbauer.
Miba is reacting to the weak market by adjusting their capacity in the affected areas and making it more flexible. Measures that have already been put into place include using up residual holidays, reducing overtime and excess hours and also cutting back on the use of temporary workers and educational leave. Employees in Austria will also be moved to other locations as needed. As of mid February, the 320 employees at Miba Sinter Austria in Vorchdorf will go on reduced working hours. This is a fifth of the employees employed at Miba in Austria. For four weeks, the affected employees will work on average 25% less with a pay reduction of approximately 10%.
"Miba currently has 1600 employees in Austria. Our goal is to get through these difficult times while retaining our permanent staff as these are the trained employees that we will need for the upcoming recovery", says Mitterbauer.
02.02.2009
Miba AG: Management Board Expanded Harald Neubert, CEO of Miba Sinter Group, has joined the Management Board of Miba AG
effective February 1, 2009. This addition ensures that each of Miba's three business
segments will again have a representative on the Miba AG Management Board in the future.
Neubert, born in 1956, has been with Miba since May 2007.
The Management Board of Miba AG thus has a total of four members as of the beginning of business year 2009-2010. Peter Mitterbauer continues as Chairman of the Board and Chief Financial Officer. Miba Bearing Group and Coatings are represented on the Management Board by Wolfgang Litzlbauer, Miba Friction Group by Norbert Schrüfer, and Miba Sinter Group by Harald Neubert.
The Management Board of Miba AG thus has a total of four members as of the beginning of business year 2009-2010. Peter Mitterbauer continues as Chairman of the Board and Chief Financial Officer. Miba Bearing Group and Coatings are represented on the Management Board by Wolfgang Litzlbauer, Miba Friction Group by Norbert Schrüfer, and Miba Sinter Group by Harald Neubert.