- Consolidated sales increase by 47.3% to €220.6 million
- Consolidated EBIT grows by 44.7% to €14.9 million
- New orders rise by 59.3% to €245.4 million
euromicron recorded an extremely successful third quarter, with exceptionally strong organic growth of around 30% and integration of telent GmbH. Merging of euromicron’s activities with those of telent GmbH is proceeding as planned, above all with a highly motivated team at telent, and offers the Group a host of cross-selling potentials and access to new, highly promising customer segments.
With these steps, euromicron is ahead of its timetable and now in the midst of the next stage of its corporate strategy, which offers the Group the chance to set its sights on the €300 million mark in 2011. “In order to ensure we achieve our EBIT target of 8 – 11 percent in the future, we will carry out pinpointed economic optimization of the euromicron Group integrated with telent over a period of 2 to 3 years. We will continue to focus in future on leveraging additional potential, systematically controlling the Group’s expenditure, offering all technologies at all German locations and so being able to give customers ideal consulting and support,” said Dr. Willibald Späth, Chairman of the Executive Board of euromicron AG.
euromicron has taken a further step in this direction by taking over the employees and customers of ACE Advanced Engineering GmbH, as well as the development team of the former TeraMile GmbH. Both companies help bolster euromicron’s technological competence in the highly promising fields of active and IP technology and strengthen its workforce.
Consolidated sales
In the first three quarters of fiscal year 2011, euromicron generated consolidated sales of €220.6 million on its new operational base, i.e. including telent GmbH since June 7, 2011, an outstanding increase of 47.3% year-on-year. As a result, euromicron has already achieved its sales target (without acquisitions) for the whole of 2011 and is confident of being able to attain the newly adjusted goal of €280-300 million by the end of the year.
Consolidated income
The sustainable overall growth is also reflected in earnings before income and taxes (EBIT) of €14.9 million, an increase of 44.7% over the same period for the previous year (€10.3 million). Operating income of the associated companies was €19.6 million, likewise well up on the previous year’s €14.8 million. EBITDA was at the strong level of just under €19 million. Net profit for the period was €7.8 million (previous year: €5.6 million), giving undiluted earnings per share of €1.53 (previous year: €1.17).
Order situation at the Group
euromicron received new orders totaling €245.4 million in the first three quarters of fiscal 2011, a rise of 59.3% and the highest in all the years euromicron has been operating in the market as a network specialist. Order books also stand at a very high level: €173.8 million or around 73.3% up on the previous year (€100.3 million).
Balance sheet structure
The euromicron Group’s total assets at September 30, 2011, were €281.0 million, compared with €196.0 million at December 31, 2010.
Personnel
The euromicron Group employed 1,543 persons at September 30, 2011. Personnel costs totaled €53.1 million (previous year: €41.1 million) and are 24.1% of sales, well down on the figure for the same period of the previous year of 27.5%. The increase in the workforce is due to the acquisition of telent GmbH, 394 of whose employees joined euromicron.
Equity
Equity at September 30, 2011, was €91.5 million in absolute terms, a slight rise of around €2.3 million above the level stated in the 2010 financial statements. The temporarily lower equity ratio compared with the 2010 financial statements is mainly attributable to the consolidated balance sheet items from the single-entity financial statements of telent GmbH and the resultant extension in the consolidated balance sheet.
The share
euromicron’s share was not fully able to evade the general negative trend on the financial markets in the course of the third quarter, but proved to be extremely robust in relation to the general falls in prices on all indices since the end of July. On the balance sheet date (September 30, 2011), the price finally stood again at €19.20, with a clear upward tendency, in what was still internationally a very volatile market.
Outlook
Given that Germany is still euromicron’s main market, the Group does not anticipate any restrictive impact from the European debt crisis and turbulence on the financial markets on its operating business for the final quarter of 2011 either. In its next phase of development, euromicron will also systematically tackle future-oriented projects in important growth markets, such as smart cities or the energy market, and occupy high-margin niches trends in them. To enable this, the Group will continue to take over and integrate qualified teams, technologies, market access, patents and the like from competitors.
The Group aims to achieve the €300 million sales mark in 2011 and has set itself a particularly ambitious aim, following the integration of telent and the low margins it generates, of a minimum consolidated EBIT target of 7.5-8.5%.
Now that the Executive Board has complied with the request by shareholders at the 2011 General Meeting to carry out the current capital increase with subscription rights, it asks them to make active and extensive use of their subscription rights. The objective of the capital increase is to finance euromicron’s further growth and so also strengthen the company’s equity base.
You can find the Q3 2011 Interim Report as of November 11, 2011, on our homepage at http://www.euromicron.de/en/finanzberichte.
euromicron AG (www.euromicron.de) is an all-round solution provider for communications, transport, data and security networks. euromicron’s network infrastructures integrate voice, video and data transport wirelessly, via copper cable and by means of fiber-optic technologies. euromicron builds leading applications, such as security, control, healthcare or surveillance systems, on the basis of these cutting-edge network infrastructures.
Founded on its expertise as a developer and producer of fiber-optic components, euromicron AG is a strongly growing, highly profitable group that is listed on the stock market, has a medium-sized character and focuses on operational growth, integration and further market penetration, internationalization and expansion.