- Strong first six months, but declining growth rates
- Miba increases sales by 13.7 percent despite tough market environment
- Strategic focus on China and USA
Miba, strategic partner to the international engine and automotive industry, reports a strong first half-year 2012-2013 (February 1 to July 31) despite challenging market environment. Consolidated sales rose in comparison to same period last year by 13.7 percent to EUR 319.9 million. Earnings before interest and taxes equaled EUR 36.6 million.
“Despite initial weakening in a few of our industries and an overall tough market environment, Miba asserted itself quite well in the first half of the year,” says Peter Mitterbauer, Chairman of the Management Board of the Miba Group. He explained that the increase in sales was primarily attributed to the broad positioning of the company in various industries and regions, and thus attributed to the consistent implementation of the corporate strategy. As a whole, the rates of growth did reflect a decline in the first six months.
At 35 percent, Miba Sinter Group accounted for the largest share of consolidated sales, followed by Miba Bearing Group at 33 percent. Miba Friction Group contributed approximately 23 percent to consolidated sales. Just under eight percent comes from New Technologies Group.
Earnings before interest and taxes (EBIT) totaled EUR 36.6 million (previous year: EUR 28.5 million). The markedly improved quality of earnings is attributed to the successful integration of the acquisitions of the past two business years and to the measures to alleviate capacity bottlenecks.
In the first six months of the business year, Miba invested almost EUR 29.5 million (previous year: EUR 22.4 million). The majority of the investment funds were placed in expansions to production capacity at the Austrian plants. Miba invested more than EUR 10million at its sites in Slovakia, the USA and China.
Once again, the Group financed these investments entirely out of cash flow from operations amounting to EUR 46.8 million (previous year: EUR 22.7 million), and thus through its own financial power.
As of the July 31, 2012 reporting date, Miba employed just under 4,500 employees worldwide (including leased employees), and thus almost 500 more employees than one year before. More than half of the employees are employed at Miba’s sites in Austria.
4,500 employees worldwide
To meet the growing need for highly qualified employees, Miba secured the majority of the new staff from its own ranks. Contributing to this goal are the Group’s continuing education plans for all employees as well as its comprehensive apprentice training program. In September 2012, 36 young adults started their training at Miba’s sites in Upper Austria. Altogether, Miba currently has 122 apprentices in training in Austria. Currently, there are 18 youths in training in Slovakia, and another 15 will begin their training programs in the fall.
Miba’s outlook for the second half of the year is conservative. “The developments in our sales markets, and hence the projections for the second half of the year as well, are very difficult. We have to work even more on being able to respond flexibly and consistently to changing exogenous conditions – like the short-term nature of our industries, or the fluctuations in ordering patterns of our customers,” affirms Mitterbauer. For the year as a whole, Miba is anticipating maintaining performance at least at the same level as the prior year.
Outlook: Developments difficult to project
Miba consistently pursues its strategy of targeted investment in international growth markets and strategic business areas, so that it can largely secure its independence from geographic and industry-related developments in the future as well. “Through the Miba bond, we have created the essential preconditions for this,” Mitterbauer recently confirmed regarding the background for the issuance of the EUR 75 million corporate bond in February 2012.
The strategic focus is on the consistent further development of the fourth division, New Technologies Group, and on the expansion of local production in the USA and China. “In the next few years, we will be investing a total of EUR 20 million in trebling the spatial dimensions of our Chinese plant,” explains Mitterbauer. Sintered components and engine bearings are already being produced at the site in Suzhou. This build-out will allow for a marked expansion of the product portfolio. In the USA, Miba will double the area of its friction linings plant, to accommodate a large order from the North American construction equipment industry.
Overview of key figures
Sales (in EUR million)
1st Half-Year 2012-13 319.9
1st Half-Year 2011-12 281.3
1st Half-Year 2010-11 203.1
EBIT (in EUR million)
1st Half-Year 2012-13 36.6
1st Half-Year 2011-12 28.5
1st Half-Year 2010-11 27.9
Investments (in EUR million)
1st Half-Year 2012-13 29.5
1st Half-Year 2011-12 22.4
1st Half-Year 2010-11 18.3
Employees as of July 31, 2012 (including leased employees)
1st Half-Year 2012-13 4,132 (4,505)
1st Half-Year 2011-12 3,715 (4,024)
1st Half-Year 2010-11 2,874 (3,024)