Slight sales growth for first nine months

(PresseBox) (Zurich, ) .
- Sales increase by 4 percent year-on-year in the first nine months of 2014
- Q3 sales down as expected in core Automotive segment; Industrial segment sees sales rise again
- Start-up costs of new products continue to impact earnings; EBIT margin for nine-month period at 4 percent
- For 2014 as a whole, Micronas still expects sales of CHF 158 million, with a percentage EBIT margin in the lower single-digit range More information

In the first nine months of 2014 Micronas Group's consolidated net sales went up by 4.5 percent year-on-year to CHF 119.6 million. In the core segment Automotive, sales increased by 3.0 percent compared with the first 9 months of 2013 to CHF 111.3 million. The Industrial segment generated sales of CHF 8.4 million, an increase of 29.8 percent on the equivalent period of 2013. Consolidated sales for the third quarter of 2014 were down on the previous quarter figure at CHF 38.5 million. The Industrial segment enjoyed good sales growth again in Q3, but as expected the Automotive segment experienced lower sales as the positive effect seen in the first half of 2014 of strong car sales in Japan and restocking of inventories by our customers came to an end in the third quarter.

In the third quarter of 2014, start-up costs for new products continued to hurt margins. The proportion of Japanese customer invoices denominated in euros increased again, and by the end of September 2014 reached around 30 percent. For the first nine months of 2014 the Micronas Group achieved a gross margin of 31.0 percent, compared with 31.9 percent in the equivalent period of the previous year. Operating profit (EBIT) came to CHF 5.0 million, or 4.2 percent of sales.

Micronas achieved a profit after financial result and taxes of CHF 3.1 million for the first nine months of 2014, giving earnings per share of CHF 0.10. Pension provisions were adjusted again to the lower level of interest rates in the third quarter. Shareholders' equity was down by CHF 9.3 million to CHF 108.4 million as at September 26, 2014 resulting in an equity ratio of 36.0 percent. Cash, cash equivalents and short-term financial cash deposits fell slightly to CHF 154.1 million in the third quarter owing to further investments in manufacturing areas.

Third quarter capacity utilization at the Freiburg manufacturing plant, which includes both frontend and backend activities, stayed the same as in the previous quarters. For the first nine months of the year as whole, utilization stood at 85 percent.

As announced, Günter Hoppe handed over his position as CFO to the new Micronas CFO Daniel Wäger on September 15, 2014. Mr. Hoppe will retire altogether at the end of October 2014.

The Board of Directors and Management confirm the full-year forecast made in July, and expect sales of around CHF 158 million for 2014, together with an EBIT margin in the lower single-digit percentage range.

This press release contains forward-looking statements, such as projections, forecasts and estimates. Such forward-looking statements are dependent on certain risks and uncertainties which may cause actual results, performance or events to differ materially from those anticipated in this press release. The forward-looking statements contained in this press release are based on Micronas' views and assumptions as of this date and Micronas does not assume any obligation to update or revise this press release. This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities in any jurisdiction.

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Micronas
Hans-Bunte-Strasse 19
D-79108 Freiburg
Susy Krucker
Head of Investor Relations
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