Stein am Rhein/Kloten, 23 April 2014. The Phoenix Mecano Group’s consolidated gross sales in 2013 totalled EUR 500.6 million, virtually the same as the previous year (EUR 500.5 million). Negative currency effects depressed gross sales by -1.1%. Corrected for changes in the scope of consolidation, sales were down slightly by 0.8%. Net sales, at EUR 495.4 million, were also on a par with the previous year (EUR 495.6 million). On the one hand, the strategic partial withdrawal from the photovoltaic components business led to a decline in sales of EUR 23 million. On the other hand, an equivalent volume of new sales were generated through organic growth initiatives and acquisitions, primarily in the Mechanical Components division.
The operating result increased by 25.5% in 2013, from EUR 27.9 million to EUR 35.0 million. The previous year’s result included devaluations of tangible and intangible assets and losses on inventories and production materials in the photovoltaic components business totalling around EUR 8 million. The operating margin improved from 5.6% to 7.0%.
The Enclosures division saw its gross sales fall by a minimal 0.1% in 2013 to EUR 159.8 million. Corrected for differences in foreign-exchange rates, gross sales were up by 0.7%. Owing to organic growth, sales in the Mechanical Components division rose by 7.2% in the reporting year to EUR 236.4 million (8.9% when corrected for differences in foreign-exchange rates). In the ELCOM/EMS division, the strategic withdrawal from the photovoltaic market segment and the slump in demand in this market resulted in a 13% drop in sales (15.2% when corrected for differences in foreign-exchange rates). Excluding this reduction in sales, the division increased its sales by 7.6%.
Result of the period
The result of the period was up by 23.9% from EUR 18.1 million to EUR 22.4 million. The net margin climbed to 4.5% (previous year 3.6%).
Equity ratio and net indebtedness
The equity ratio was unchanged at 64.3%. Thanks to the free cash flow generated, the Group was able to convert the prior-year net indebtedness of EUR 0.7 million into a net cash position of EUR 1.5 million in 2013. This gives the Phoenix Mecano Group plenty of financial leeway for organic and acquisition-related growth.
The Phoenix Mecano Group's gross sales in the first quarter of 2014 rose by 4.8% year-on-year to EUR 133 million. Excluding the base effect in the photovoltaic business, the increase was 5.8% (6.2% when corrected for differences in foreign-exchange rates). Net sales rose by 4.7% to EUR 131.8 million.
Incoming orders were down by 1.7% compared with the same period last year.
The current book-to-bill ratio stands at 99.7%.
The quarterly result of EUR 11.8 million represents a year-on-year increase of 11.8%, bringing the operating margin to 8.9% (previous year 8.3%).
In the Mechanical Components division, gross sales rose by 7.9% to EUR 63.1 million. The operating result increased by 40.9% to EUR 6.3 million. The operating margin climbed to 10% (previous year 7.7%). Gross sales in the Enclosures division totalled EUR 44 million in Q1 2014, up 4.5% year-on-year. The operating result reached EUR 7.4 million, while the operating margin improved from 15.2% to 16.7%. In the ELCOM/EMS division, gross sales fell by 1.9% year-on-year to EUR 25.9 million and incoming orders by 15.2% to EUR 25.6 million. Stripping out the photovoltaic effect, sales were up by 3.1%. The accelerated expenditure required to realign the division resulted in a negative operating result of EUR 1.0 million.
Despite unresolved debt problems in the eurozone and weaker-than-expected performance by China, the world's long-time growth engine, we are witnessing a gradual improvement in the economic environment. Overall, the positive factors now outweigh the negative, so we have based our business and investment plans for 2014 on the assumption of moderate growth. Our strong balance sheet and solid free cash flow give us plenty of scope to exploit growth opportunities. At the same time, we consider ourselves well-equipped to handle any economic setbacks. We expect the operating result in 2014 to exceed that of the previous year, assuming economic conditions remain stable.
The Board of Directors intends in future to pay out a higher proportion of sustainable profit in the form of dividends. The payout ratio is to be set at 40–50% of net result, adjusted for special factors (previously 20–30%). A dividend proposal of CHF 15.00 per bearer share will therefore be made to the Shareholders' General Meeting (previous year CHF 13.00).
Link to the annual report 2013:
For further questions, please contact:
Phoenix Mecano Management AG
Mr Benedikt Goldkamp, CEO
Lindenstrasse 23, 8302 Kloten
Tel. +41 (0)43 255 4 255
Fax +41 (0)43 255 4 256