- Sales increase by 31.9 percent to EUR 98.0 million
- Earnings before interest and taxes return to pre-crisis level
- Takeover of British coating specialist Teer Coatings Ltd. in April
- Opening of the new sinter production site and a new production line for highperformance engine bearings in the USA in June
Miba, strategic partner to the international engine and automotive industry, had a strong start to the new business year. Results and new orders significantly surpassed expectations in the first quarter. Group sales increased during the first quarter of 2010-2011 (February 1 to April 30) to EUR 98.0 million, a 31.9 percent rise from the same period the previous year. Sales have thus nearly returned to the level of the strong first quarter of 2008. Earnings before interest and taxes (EBIT) totaled EUR 13.5 million, considerably above the previous year’s level of EUR 1.2 million for the same period. The EBIT margin reached 13.7 percent, a very good level in industry comparison.
“Miba has emerged from the crisis even stronger than before thanks to our persistent focus on high technology and our strict cost management. We have a sound financial structure and we’re equipped for the challenges and opportunities the future will bring,” says Peter Mitterbauer, Chairman of the Miba Management Board. In April Miba took over Teer Coatings Ltd., Droitwich, UK. The know-how of this British coatings specialist will enable Miba to now offer its customers an even broader range of coating solutions. During the first quarter of 2010-2011, the Miba Group continued to focus its activities on strategic management of working capital and on strengthening liquidity. Miba’s earnings before taxes (EBT) totaled EUR 13.4 million, compared to EUR 0.6 million for the same period the previous year.
Investments in property, plant and equipment amounted to EUR 3.8 million in the first quarter of 2010-2011 and were once again financed entirely from operational cash flow (EUR 19.8 million). Free cash flow (cash flow from operations minus cash flow from investment activities) totaled EUR 11.2 million.
Sound financial structure ensures Miba’s independenc
Net cash increased again to total EUR 18.9 million as of April 30, 2010 (EUR 7.1 million as of January 31, 2010). Group equity amounted to EUR 221.1 million as of April 30, 2010 (EUR 206.8 million as of January 31, 2010), an equity ratio of 59.5 percent. A sound financial structure and a solid equity base ensure the financial independence and autonomy of the Miba Group.
Sales (in EUR million)
First Quarter 2010-11 98.0
First Quarter 2009-10 74.3
First Quarter 2008-09 102.2
EBIT (in EUR million)
First Quarter 2010-11 13.5
First Quarter 2009-10 1.2
First Quarter 2008-09 13.3
Investments (in EUR million)
First Quarter 2010-11 3.8
First Quarter 2009-10 5.1
First Quarter 2008-09 11.3
Number of employees (as of April 30, 2010)
First Quarter 2010-11 2,720
First Quarter 2009-10 2,633
First Quarter 2008-09 2,813
As of April 30, 2010, Miba had 2,720 employees worldwide. In comparison to the previous reporting date (January 31, 2010), this represents an increase of 3.8 percent or 100 employees. Adjusted for the employees of Teer Coatings Ltd., Droitwich, UK, who were included in the employee figure for the first time on April 30, 2010, the increase totaled 1.6 percent or 42 employees. The expansion of the Miba workforce took place primarily at the sites in Slovakia and China.
Solid progress in incoming orders
The Miba Group’s level of new orders also reflected the recovery in the company’s target markets. As of April 30, 2010, orders totaled EUR 160.3 million, 13.2 percent higher than the level at the end of the previous business year (EUR 141.6 million as of January 31, 2010). “The second half of this year will show whether this progress proves sustainable. We are confronted with strong fluctuations in customer call-offs of orders. This demands a high degree of flexibility on our part while making it more difficult for us to plan and to make reliable forecasts,” says Peter Mitterbauer, Chairman of the Miba Management Board.
Miba relies on a proven strategy
Under these challenging market conditions, Miba continues to count on technology leadership and competitive cost structures while making a solid liquidity base and a highly skilled team top priorities. With the opening in the USA of a new sinter site at the end of June 2010 and a new line for high-performance engine bearings, Miba is meeting the demand for energy-efficient high-performance transmission components and is therefore where the customer needs it.