1st Quarter 2012-2013: Miba Increases Sales and Earnings

  • Excellent start in the new business year
  • Modest growth expectations for 2012-2013

Miba, strategic partner to the international engine and automotive industry, had a good start in the new business year. First quarter sales and level of orders showed encouraging increase. Consolidated sales in the first quarter 2012-2013 (February 1 to April 30) soared by 16 percent in comparison to the same period last year, to EUR 160.9 million. EBIT (earnings before interest and taxes) equaled EUR 20.2 million, which exceeds last year’s figure by EUR 6.6 million.

“The success of the past business year continued to motivate us in the first quarter. Miba grew even more. Our volume of orders remains satisfactory. However, we do note a slight drop-off in demand in certain markets,” states Peter Mitterbauer, Chairman of the Management Board of the Miba Group. The sales growth in the Bearing, Sinter and Friction divisions predominantly stems from organic growth. At 35 percent, Miba Sinter Group accounted for the largest share of consolidated sales, followed by Miba Bearing Group at 32 percent. Miba Friction Group contributed approximately 23 percent to consolidated sales. Just under eight percent comes from the New Technologies Group established last year.

The capacity expansion completed last year, and the increased productivity achieved by this, as well as the successful integration of acquisitions from the previous two business years all contributed substantially to the strong earnings before interest and taxes (EBIT) of EUR 20.2 million (previous year: EUR 13.6 million).

In the first three months of the business year, Miba invested almost EUR 15 million (previous year: EUR 9.9 million). These investments were dedicated to capacity expansion at the Austrian, Slovakian and North American sites. Substantial investments are also scheduled for the rest of the business year for the site in China. As in the past, Miba financed these investments entirely through cash flow from operations, and thus from Miba’s own capital resources. Cash flow from operations equaled EUR 15.8 million (previous year: EUR 12.6 million).

Sustainability through a solid capital and finance structure In order to finance additional growth, Miba issued a seven year bullet bond in the amount of EUR 75 million at the start of the quarter, in February 2012. “With this type of corporate financing, we are securing our autonomy from volatile developments in the financial markets over the long term, and are also able to sustain our mobility and flexibility,” says Mitterbauer. One sign of Miba’s financial independence is its consistently high equity ratio (April 30, 2012: 47.6 percent).

More than 500 new employees

As of the April 30, 2012, reporting date, Miba employed just under 4,400 employees worldwide (including leased employees), almost 2,300 of whom were engaged at the Austrian sites. This build-up of employees took place primarily at the Austrian and Slovakian sites, and was largely necessitated by the capacity expansion in all divisions.

“Each employee is a key factor of our success. Our formula for this is in our ambitious corporate culture. We cultivate and promote our employees, giving them the freedom and the opportunity to participate in shaping Miba,” says Mitterbauer In order to consolidate and expand its technology leadership on an ongoing basis, Miba will invest more than EUR 30 million in research and development as well as training and continuing education over the current business year.

Outlook: Internationalization – the growth driver

“We are seeing a downturn in some markets, and are cautious with projections. Nonetheless, we still expect further growth for the entire business year, although we do not anticipate growth rates to be as high as in the past two years,” explains Mitterbauer. “Our customers’ ordering pattern is getting increasingly volatile. The short-term nature of our industries is on the rise. So to continue on the path of growth, Miba needs a greater degree of adaptability from its management, employees and suppliers. At the Miba sites in Austria, we need better general framework conditions, primarily in terms of flexibility with the labor utilization,” urges Mitterbauer, from non-partisan management and labor as well as Austrian legislators.

Miba is also proceeding with its international growth strategy despite heightened instability and increasingly complex projections on business development. The strategic focus remains on the USA, China and India, where substantial investments are planned.

Overview of key figures

Sales (in EUR million)
Q1 2012-13   160.9
Q1 2011-12   138.7
Q1 2010-11   98.0
EBIT (in EUR million)
Q1 2012-13   20.2
Q1 2011-12   13.6
Q1 2010-11   13.5
Investments (in EUR million)
Q1 2012-13   14.8
Q1 2011-12   9.9
Q1 2010-11   3.8
Employees (including leased employees)
Q1 2012-13   4,393
Q1 2011-12   3,870
Q1 2010-11   2,782