Miba : Positive revenue and earnings performance in the first half of the year

Current market trends dampen growth expectations

Miba AG, which is a listed company, recorded a positive revenue and earnings performance in the first half of 2015-2016 due to favorable currency translation effects and strong demand from the automotive sector. However, the momentum from the first quarter did not continue to the same extent in the second quarter. A further downturn in growth is expected for the second half of the year.

Revenue in the first half of 2015-2016 (February to July) rose by 14.0 percent to EUR 375.2 million. Most of this revenue growth was based on foreign currency effects and company acquisitions; the share of organic growth however declined from the first to the second quarter. Earnings before interest and tax (EBIT) improved to EUR 49.7 million (after EUR 41.9 million), which equated to an EBIT margin of 13.3 percent (previous year: 12.7 percent). The positive earnings performance was strongly supported by currency translation effects.

Miba Chairman of the Management Board, F. Peter Mitterbauer, commenting on business performance in the first half of the year, stated: 'The business has performed in line with expectations thanks to the momentum from the currency situation. Demand from the automotive sector, which was still strong, contrasted with a marked slow-down in the capital goods sector at a global level.' In Europe, Miba benefited from the positive performance of the passenger vehicle industry. Business in America had been satisfactory, but revenue growth was almost exclusively based on currency translation effects. In Asia, Miba felt the sharp downturn in trucks, construction machinery and agricultural equipment while it was still possible to compensate for the markedly declining passenger vehicle market; the currency situation which was more favorable for Miba also had a supporting effect.

Investments in property, plant and equipment and intangible assets amounted to EUR 32.9 million in the first half of 2015-2016 (previous year: EUR 24.8 million).

Group equity as of the end of July was EUR 449.2 million (January 31, 2015: EUR 422.0 million). At 56.9 percent, the equity ratio as of July 31, 2015, remained unchanged from the January 31, 2015, level (56.9 percent).

As of the July 31, 2015, reporting date, the Miba Group employed 5,385 members of staff (including agency staff) globally, which corresponds to a year-on-year increase of over 300 employees. At the mid-year point, Miba was training 172 apprentices. On September 1, 2015, another 36 young people commenced their training at the Upper Austrian sites.

Outlook
The persistent downturn in the capital goods industry will lead to a further slowdown in Miba's growth in the second half of 2015-2016. Growth will primarily be sustained by the automotive industry; Miba expects demand in most other sectors to stagnate. Geopolitical uncertainties, the volatile situation in the financial markets and the current weakness of China make it difficult to accurately predict medium-term performance. Overall, Miba regards its target of up to 5 percent organic growth as achievable for the full year despite the economic downturn. Miba is expecting a slight improvement in earnings quality for the full year due to more favorable currency trends.

Overview of key figures

distributed by