Miba Financial Statements 2014–2015: growth engine is running

Upper Austrian technology group with record revenue of EUR 669.3 million

  • Revenue 10 percent above previous year
  • Number of employees breaks through the 5,000 mark
  • Investments in research & development at an all-time high
  • The US and China remain the most important markets of the future
  • Aiming for further growth

Miba AG’s consolidated revenue rose by almost 10 percent to EUR 669.3 million in the past fiscal year (February 1, 2014, to January 31, 2015). Markets in Asia and the US, where Miba multiplied its production areas in the past fiscal year, were the largest growth drivers. The number of employees and investments in research & development also reached new all-time highs. As of January 31, 2015, Miba employed 5,178 members of staff at 22 sites. R & D expenditure increased to EUR 27.9 million.

Laakirchen, May 6, 2015

Despite some challenging market trends, fiscal year 2014–2015 was very satisfactory for Miba. Demand for construction machinery, mining equipment and ships continued at the low level of recent years. The tractor market recorded heavy declines in some regions, while demand for power electronics components was somewhat subdued overall due to the difficult investment climate. Sales markets for trucks and passenger vehicles performed positively across the world. Miba is an important partner to all well-known manufacturers in the above sectors with its development and production of engine bearings, sintered components, friction materials, coatings, power electronics components and special machinery. “Our wide-ranging product portfolio has once again proved itself, allowing us to react flexibly to market demands,” explained CEO F. Peter Mitterbauer.

Nearly EUR 60 million more revenue

“We have grown profitably – our growth engine is running at a good operating temperature,” said Mitterbauer while taking stock. Consolidated revenue rose year on year by EUR 59.1 million to EUR 669.3 million. “With this result, we are getting a good bit closer to our medium-term target of reaching the one billion revenue mark,” continued Mitterbauer. Earnings before interest and tax (EBIT), supported by one-off effects from exchange rate trends, amounted to EUR 81.9 million (2013–2014: EUR 70.2 million). Miba’s technological advantage, production flexibility and a highly motivated and efficient team had once again been mainly responsible for the excellent result.

EUR 28 million invested in research & development

The large investment projects of recent years – the trebling of floor space at the production site in Suzhou, China, and the doubling of the sinter site in McConnelsville, US – were successfully completed at the start of the past fiscal year. In Europe, a large part of the investments went into increasing capacity at the Slovakian sinter site. In the past fiscal year, Miba invested a total of EUR 53.4 million in expanding and modernizing capacities.

The Company however primarily secures its competitiveness by consistently aiming for technology leadership. For this purpose, the “Innovation & Technology” department was recently upgraded. The newly appointed “Vice President Innovation & Technology” is responsible for coordinating technology development in the divisions across the Group, supporting strategic development projects and identifying new lines of business. As the Chairman of the Management Board explained, funding “for this key to growth was increased to EUR 27.9 million.” Overall, 235 members of staff are employed in research & development, with the majority being based in Austria.

Ongoing training and continuing education – the key to success

“We are aware that our investments would all be to no avail if we didn’t have such highly qualified and committed employees”, says Mitterbauer. Instead of complaining about the lack of skilled personnel, Miba relies on its many years of experience as a training company, on ongoing continuing education and on new ways to appeal to employees. Two new training offerings will be starting in the next few weeks – a project for apprenticeships via the second educational channel and a global training program for university and college graduates.

Including agency staff, Miba employed a total of 5,178 members of staff globally at 22 sites as of January 31, 2015. This equates to a year-on-year increase of 508 employees. The rise in the number of employees mainly occurred in China and in the US; it is partly attributable to the initial consolidation of two sites.

Miba wants to grow organically and through acquisitions

The outlook for the first half of 2015–2016 is cautiously optimistic not least because of the global automotive industry. The geopolitical uncertainties and the volatile performance in the financial markets make predictions about how the whole year will develop significantly more difficult. “Overall, we are still expecting especially the US and China – despite the slowdown in economic growth – to be our main success drivers in the next few years,” said Mitterbauer, once again confirming Miba’s long-term growth plans in these regions. It was already foreseeable now that the Company would probably expand production capacities in the next few years. The funds to implement these growth plans were available. “In addition to expanding our traditional areas, we also want to continue to broaden our product portfolio through acquisitions. With our expertise in technologically advanced components, I am confident that we can also create added value in other areas around the megatrends of mobility and energy efficiency,” said Mitterbauer.

The 2014-2015 Miba Annual Report will be published at http://www.miba.com/en/company/investor-relations/  at the end of may.