Quarters 1–3, 2013–2014: Miba once again reaches prior-year levels

Revenue and profit performance stable

  • Revenue and profit performance stable
  • Staffing increases in all countries
  • Focus on global growth


In terms of group revenue and profit, the upper Austrian technology group once again nearly reached prior-year levels in the first three quarters of 2013–2014 (February 1 to October 31). The outlook for the whole year is cautiously positive.

Consolidated revenue amounted to EUR 460.0 million, which equates to a minimal reduction of only 0.4 percent compared to the first three quarters of 2012–2013. EBIT (earnings before interest and tax) amounted to EUR 54.1 million and was thus also only slightly below the prior-year comparative (EUR 54.2 million). “Given the market conditions, which have been more difficult than in the prior-year comparative period, we can be really proud of this result,” F. Peter Mitterbauer, Miba’s Chairman of the Management Board, stated, taking great satisfaction in the Company’s latest performance.


Customers demand speed, flexibility and the highest quality

On the one hand, the continuing weak demand in some sales markets such as shipbuilding, mining or construction presents challenges for Miba. At the same time, customers are increasingly making arrangements on a short-term basis and demanding even shorter reaction times and greater flexibility from Miba, while increasing requirements for quality. On the other hand, development cycles in the engine manufacturing and automotive industries are decreasing more and more. “As well as these challenges, we are, however, fortunately also seeing early signs of a recovery in certain submarkets,” says Mitterbauer. In the past few weeks for example, the automotive industry, which contributes about 40 percent to Miba’s total revenue, has performed better than expected, especially in the USA. The Company also benefits from the continuing strong global demand for agricultural machinery, for which Miba manufactures engine bearings and friction materials. In addition, after a difficult 2013, the truck market, for example, is showing positive trends for the forthcoming year, especially in China. “All of these developments, some of which are very short-term, are contributing to an increase in complexity, which has now become part of our daily business. Our reaction to this is to have a very clear focus over the next few years: We will press on with Miba’s global growth, focus even more on technology and innovation and, above all, invest globally in the training and continuing education of our employees, not just in additional premises and new machinery,” explains Mitterbauer.



Training and continuing education for more than 4,600 employees

“Our competitive advantage will in future not just be based on excellent products and technologies, but will be maintained above all thanks to our highly qualified employees who are behind the development and manufacture of our products,” says Mitterbauer, acknowledging the Company’s extensive staff development measures. For the purpose of ongoing training and continuing education, Miba has for decades not only relied on highly professional apprenticeship training and a wide range of specialist courses, but also on tailor-made development programs for skilled employees and executives at all Miba sites across the world. The Miba Management Academy and Miba Leadership Academy, from which already 230 employees have graduated in the past ten years, are examples of this. As of the October 31, 2013, reporting date, Miba employed 4,618 members of staff globally (including agency staff), and thus 206 employees more than in the previous year. Increases in staff numbers occurred mainly in Slovakia, the USA and China. Currently, Miba is training 169 apprentices at its sites in Austria and Slovakia – the highest number ever in the history of Miba apprenticeship training.


Miba is sticking to its expansionary capital expenditure policy

In the first nine months of the fiscal year, Miba invested almost EUR 37.3 million globally (previous year: EUR 40 million) in the expansion of capacity and in measures to improve productivity, despite continuing short-term uncertainties concerning the development of demand. Capital expenditure volumes for the whole year should at least be at or around the same level as in the previous year (EUR 51 million).


Cautiously positive outlook for the whole year

While developments in some sales markets over the next few months continue to be difficult to predict, other sectors are showing signs of stabilizing as well as slight increases since the third quarter, which should also continue in the fourth quarter. Miba is therefore assuming that it will be able to end the whole year (February 1 to January 31) at or around the level of the previous year. “In the medium and long term, most of our sales markets will continue to recover; in addition, we see enormous opportunities in the USA and China. This is where we will profit from the general development of markets and also where we will further strengthen our existing market share,” says Mitterbauer, who is confident about the years ahead. 



Overview of key figures

 

 

Quarters 1–3 2013–14

 
 

Quarters 1–3 2012–13

 
 

Quarters 1–3 2011–12

 
 

Revenue (in EUR million)

 
 

460.0

 
 

461.9

 
 

429.7

 
 

EBIT (in EUR million)

 
 

54.1

 
 

54.2

 
 

50.2

 
 

Capital expenditure (in EUR million)

 
 

37.3

 
 

40.0

 
 

34.4

 
 

Number of employees as of October 31 (including agency staff)

 
 

4,618

 
 

4,412

 
 

4,254