- At EUR 313.7 million, revenue is up 37 percent from the previous year
- Earnings before interest and taxes (EBIT) rise to EUR 41.1 million
- Number of employees of the Miba Group up by 20 percent
In the first three quarters of the current business year 2010-2011 (February 1 to October 31), Miba, strategic partner to the international engine and automotive industry, generated Group sales in the amount of EUR 313.7 million. This means an increase of 37.4 percent compared to the same period in the previous year. Earnings before interest and taxes (EBIT) also reflected the economic upturn, totaling EUR 41.1 million (compared to EUR 5.4 million in the previous year). At 13.1 percent, the EBIT margin stands well above the industry average.
Miba has emerged from the crisis stronger than before and continues to consistently implement its growth strategy. After the takeover of the British coatings specialist Teer Coatings (TCL) in the first quarter, in the third quarter, Miba entered the technology field of power electronics by acquiring the Styrian companies EBG and DAU. The takeover of Hoerbiger’s friction lining business for off-highway applications as of January 1, 2011, will mean growth for Miba in the strategic core segment of friction. “Our corporate goal is profitable growth, and we have utilized the opportunities on the markets to achieve it. Miba is growing both in its core segments and in new technology fields. Our engines are on full speed ahead,” says Peter Mitterbauer, Chairman and CEO of Miba.
Last year’s total sales volume has already been surpassed
Sales and earnings during the first nine months of the year reflected the positive economic development in Miba’s target markets. At EUR 313.7 million, sales were 37.4 percent or EUR 85.4 million higher than the same period in the previous year. Thus, sales during the first three quarters of the current business year have already topped last year’s total annual sales. Compared to 2008, the year prior to the economic crisis, Group sales revenue rose by EUR 15.7 million or 5.3 percent.
At EUR 41.1 million, earnings before interest and taxes (EBIT) reached the best value in the company’s history. All Miba business segments contributed to this increase. The EBIT margin of 13.1 percent was well above the industry average.
As of the reporting date October 31, 2010, the order level of EUR 192.3 million also represented a new record, which is 35.8 percent higher than the figure as of the end of the previous business year.
Sales (in EUR million)
Q1–Q3 2010-11 313.7
Q1–Q3 2009-10 228.3
EBIT (in EUR million)
Q1–Q3 2010-11 41.1
Q1–Q3 2009-10 5.4
Investments in fixed assets (in EUR million)
Q1–Q3 2010-11 22.1
Q1–Q3 2009-10 10.8
Number of employees (as of October 31)
Q1–Q3 2010-11 3,148
Q1–Q3 2009-10 2,621
Number of employees jumps by 20 percent
As of the reporting date of October 31, 2010, employee headcount for the Miba Group worldwide was 3,148. This figure represents an increase of 20.2 percent or 527 employees in comparison to the previous year. Adjusted for the acquisitions, the increase in staff took place largely at Miba’s foreign sites, above all in Slovakia.
For many years, Miba has been a reliable provider of apprenticeship training in the region. The training center at company headquarters in Laakirchen is not the only place where Miba is training young people. Miba has had a training program in Slovakia for a number of years. By investing in the qualified specialists of tomorrow, the company will be able to draw junior staff from within its own ranks. As of October 31, 2010, 149 apprentices were being trained in the Miba Group (140 in the previous year). Currently, 114 apprentices are being trained at Austrian sites, while at Slovakian sites, 35 young people are undergoing training.
In the first three quarters, capital expenditures in property, plant and equipment came to EUR 22.1 million (previous year: EUR 10.8 million) and were funded entirely through cash flow from operations (EUR 66.9 million).
Investments financed from Miba’s own capital resources
Free cash flow (cash flow from operations minus cash flow from investment activities) totaled EUR 17.3 million or 5.5 percent of sales and contributed to the increase of net cash. Net cash went up since the last reporting date on January 31, 2010, by EUR 14.3 million to EUR 21.4 million. Group equity rose since the last reporting date on January 31, 2010, by EUR 32.2 million to EUR 239.0 million. Thus, the equity ratio was at 55.2 percent. Together with a robust financing structure, it ensures the financial autonomy and independence of the Miba Group.
We anticipate a stable and high production level in all segments for the rest of the year. However, customers’ order call-offs can be at very short notice, and cost pressure is mounting. “As quickly as the markets went into a tailspin, so rapid is the recovery now. We now need to manage this uptrend successfully, retaining as much flexibility as possible in order to be able to react in the short term to customers’ requirements,” explains Chairman and CEO Peter Mitterbauer.
Managing the economic recovery and shaping our future
In the coming months, continuing integration of the newly acquired companies EBG and DAU into the Miba Group will be particularly important. Miba Friction Group is working hard on the preparations for the takeover of the friction lining business from Hoerbiger. Machinery and equipment will be relocated from Hoerbiger in Germany to Miba sites in Roitham and Vráble, which will mean significant growth for both sites.
Miba is future-oriented. Expansion into new business fields is complementing growth in our core segments and is helping Miba to achieve the ambitious targets set forth in the corporate vision statement “Miba 2015”.