LUCERNE, Switzerland, April 4, 2006 (PRIMEZONE) -- Sales appreciably higher - Market Clearly Recovering
The Komax Group generated sales of CHF 257.0 million in fiscal 2005 (2004: CHF 211.5 million). Overall, the market staged a clear recovery in the second half-year, continuing into early 2006.Key figures in overview
The Komax Group generated operating profit (EBIT) of CHF 24.8 million (2004: CHF 26.9 million) in the 2005 financial year. Sales came to CHF 257.0 million (2004: CHF 211.5 million), representing an increase of 21.5%. Ismeca Automation, acquired in April, contributed CHF 34.3 million to sales growth, and Sigma AG, acquired in early 2005, CHF 6.4 million. After adjustment for acquisitions, the growth in sales comes to around 2%.
The financial result amounted to CHF -3.4 million, which is CHF 1.2 million down on the year-back figure. This is primarily attributable to long-term forward transactions in the systems business prior to the date of acquisition.
In fiscal 2005, earnings before taxes (EBT) reached CHF 21.4 million, as against CHF 24.8 million the previous year. Current and deferred taxes amounted to CHF 5.0 million. The tax rate for the year under review therefore came to 23.2% (2004: 19.5%). Improved results at our subsidiaries abroad were the main factor behind this increase. Earnings after tax (EAT) topped CHF 16.5 million (2004: CHF 20.0 million).
Sales by region
The mood of great caution within the automotive industry dominated the market environment in which we operate the 2005 financial year. Some uncertainty on the market resulted in declining sales figures for Komax in Europe. The German market -- an important one for Komax -- only started to show signs of recovery in the last few months of the year.
In Asia, sales in the machine business indicated a very slight upward trend. We remain well-positioned in the high-end segment, but were unable to gain any market share at the low-cost end of the market. As a result, Komax will this year bring to market a machine developed and produced in China.
Sales in the U.S. stayed at an agreeably high level, not least on account of the stronger demand from Japanese carmakers with U.S. production facilities: Komax enjoys a good position among Japanese wire harness manufacturers. New car sales in the US in 2005 rose year-on-year.
Market overview
Komax remains the clear global leader in standard wire processing machines as well as IDC and airbag wiring systems. With its machine systems for assembly automation, Komax is focusing on the medical technology and photovoltaic growth markets, among others.
Accounting for 53% of turnover, the automotive market continues to be a key driver of sales for Komax (2004: 59%). Uncertainty in the market led customers to put a number of investment projects on hold during the year under review. We anticipate a clear upturn in 2006; in the important German market the first signs of improvement can already be felt. The continuing demand for in-car safety and comfort is also having a positive effect on our business. It calls for additional electronics and thus for more comprehensive and complex wire harnesses. Electronic applications, such as those for heating and cooling equipment (AC) or for additional airbags, are now being used more and more frequently in medium and lower-priced automobiles.
The shift from crimping to IDC technology, which has already been fully implemented on the white market in Europe, is now getting underway in the U.S. New machines are thus needed for the manufacture of wire harnesses for domestic appliances. In the year under review, Komax delivered various Zeta machines and completed several large-scale IDC systems.
With the acquisition of Ismeca Automation during the year under review, Komax now has a center of excellence in the field of medical technology. Ismeca also brings its extensive expertise in plastic welding technology, the filling of inkjet cartridges and the assembly of inhalers and syringes to the Komax Group.
In the photovoltaic sector, the broad process capabilities of Komax Systems York (USA) have enabled it to build on its very strong market position in the manufacture of solar modules from single solar cells and in the electrical connection of solar cells. Moreover, in the Xcell 2500, Komax has succeeded in combining two previously separate processes -- the attaching of electrical contact strips to one side of the solar cells (tabbing) and the soldering or connecting of multiple cells in series into a string (stringing) -- in a single machine. The strong intake of orders in 2005 bodes well for marked growth in the year now underway.
Success with machines for the manufacture of complete wire harnesses
In machine systems for the manufacture of complete wire harnesses, Komax achieved its first significant successes during the year under review. Growth in demand for automation in this market is encouraging. For the first time, the company received follow-on orders for Zeta machine systems from big-name customers in the automotive industry. Komax generally remains very well-positioned with its wire processing product range. In particular, the positive response to the innovations presented at the Productronica trade fair in November 2005 in Munich give the company grounds for optimism.
Research and development
Research and development expenditures came to CHF 20.3 million, compared with CHF 19.1 million the previous year. Quality monitoring in wire processing, developing new machines, pressing ahead with standardization in assembly automation and expansion in the photovoltaics and medtech areas were the focal points of development efforts. To best address the local requirements of its Chinese customers, Komax made the decision to develop special fully automated crimping machines for that particular market and to manufacture these in China itself. The local development team began work in the fourth quarter of last year.
Outlook for 2006
Komax expects the market to be more buoyant in fiscal 2006. The good order intake, especially in the machine business, makes Komax confident of significantly increasing sales and, above all, profit.
The Group also expects increased demand from the growing markets for medical technology and photovoltaics. And, the car manufacturing industry, with many new models in the pipeline, is equally likely to have a positive impact in 2006.
This media release can be downloaded in German or English at www.komaxgroup.com. Further key figures can be found in the Appendix or on the website.
Appendix
Key figures of the Komax Group
Consolidated income statement 2005 2004 Change
CHF 1,000 CHF 1,000 %
Net sales 257,046 211,527 21.5
EBITDA 32,613 35,475 -8.1
as % of net sales 12.7 16.8 --
Operating profit (EBIT) 24,794 26,913 -7.9
as % of net sales 9.6 12.7 --
Free cash flow -10,293 29,628 -134.7
Group profit after tax (EAT) 16,461 19,958 -17.5
as % of net sales 6.4 9.4 --
Research & development 20,300 19,100 6.3
as % of net sales 7.9 9.0 --
Consolidated balance sheet Dec. 31, Dec. 31, Change
2005 2004 %
CHF 1,000 CHF 1,000
Total assets 267,399 227,499 17.5
Net indebtedness (-) / Net
cash (+) -3,452 15,192 -122.7
Shareholders' equity 171,741 158,811 8.1
as % of total assets 64.2 69.8 --
Headcount (as at Dec. 31)
Number of employees 886 705 25.7
Sales per employee (CHF 1,000) 307 298 3.0
Value added per employee
CHF 1,000 131 138 -5.1
Key share figures
Share capital as at Dec. 31
(CHF 1,000) 17,601 23,861
Number of shares as at
Dec. 31 3,200,174 3,181,406
Par value per share (CHF) 5.50 7.50
tock market capitalization
as at Dec. 31 (CHF 1,000) 308,177 357,590
Basic earnings per share (CHF) 5.20 6.33
P/E (Price/earnings ratio
as of Dec. 31) 18.7 17.5
Dividend yield as % 2.1 1.9
Appendix
Brief profile
Komax -- world leader in wire processing and assembly automation
The Komax Group, founded in 1975 and headquartered in Dierikon/Lucerne, Switzerland, is one of the top global providers of wire processing systems and assembly automation equipment.
The Komax portfolio of products and services ranges from wire cutting and stripping to the fully automated manufacture of complete wire harnesses and the production of automated machines for medtech components. Thanks to various acquisitions in the assembly automation sector, Komax now provides assembly and testing processes that go far beyond mere wire processing.
Ismeca Automation, for example, became part of the Komax Group in April 2005. With its expertise in the field of medical technology, the company is an ideal fit with the existing Komax portfolio, rounding out its offering in this growth market.
The Komax Group operates production facilities in Switzerland, Portugal, France, the United States and China. It also maintains a distribution and service network spanning the entire globe. Its primary markets are the automotive industry, medical technology and photovoltaics, as well as the domestic appliance, office equipment, telecom and IT sectors.
The Group generated sales of CHF 257.0 million in 2005. Operating profit (EBIT) stood at CHF 24.8 million and Group profit after tax (EAT) at CHF 16.5 million. As at December 31, 2005, Komax employed a workforce of 886 worldwide.
The media release including tables can be downloaded from the following link: http://hugin.info/100418/R/1043017/170278.pdf