- 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.
Sales (in million €)
1st Quarter 2009-2010 74.3
1st Quarter 2008-2009 102.2
EBIT (in million €)
1st Quarter 2009-2010 1.2
1st Quarter 2008-2009 13.3
Capital expenditures (in million €)
1st Quarter 2009-2010 5.1
1st Quarter 2008-2009 11.3
Number of employees (as of April 30, 2009)
1st Quarter 2009-2010 2,633
1st Quarter 2008-2009 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.
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.
Sales and R&D activities will be strengthened
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.