MAX Automation SE expands its profitability in the first nine months of 2019 - further milestones reached in the Group's realignment
MAX Automation SE, DE000A2DA588- Sales in core business grow by 17.3 % to EUR 234.9 million (9M 2018: EUR 200.2 million). All three core business areas contributed to growth
- EBITDA in core business increased significantly by 38.6 % to EUR 25.4 million (9M 2018: EUR 18.3 million)
- Operational problems in non-core business largely resolved
- Confirmation of sales and earnings forecasts for the core business for 2019: sales between EUR 320 million and EUR 330 million; EBITDA between EUR 26 million and EUR 28 million
Duesseldorf, 14 November 2019 - MAX Automation SE, listed in the Prime Standard of the Frankfurt Stock Exchange (ISIN DE000A2DA58), has today published its results for the first nine months of the 2019 financial year. The group for industrial automation solutions succeeded in increasing its profitability, achieving important milestones on its path to realignment and confirming its increased sales and earnings forecast for its core business for the 2019 financial year, which was announced on 22 October 2019.
High demand for the technologies and systems offered by the core business areas underlines the efficiency and competitiveness of MAX Automation SE in contrast to the general deterioration of the economy. The progress of the Group's realignment can be particularly seen in the positive dynamics of the earnings results. At EUR 234.9 million, sales in the three core business areas in the first nine months of 2019 were 17.3 % ahead of management expectations and above the prior-year period (EUR 9M 2018: 200.2 million). Consolidated earnings before interest, tax, depreciation and amortization (EBITDA) rose with a similar momentum and were up by 38.6 % to reach EUR 25.4 million compared with EUR 18.3 million in the prior-year period, including the effect of the first-time application of IFRS 16 (Leases) in 2019.
The measures the Group has consistently implemented in order to resolve operational problems in its non-core business are approaching their conclusion with completion rates above 80 %. After careful consideration, a decision was taken to close those subsidiaries that could not be divested in an economically viable manner. The disposal process for ELWEMA Automotive GmbH will be continued but is developing much slower than planned due to a detoriated market environment.Continued high demand for its offered solutions underlines MAX Automation SE's good position in its respective markets
In its core business, MAX Automation SE is benefiting especially from its distincitve expertise in future oriented technologies such as e-mobility, process automation and sustainability. Order intake amounted to EUR 232.2 million in the reporting period, down 7.0 % on the corresponding prior-year level of EUR 249.6 million. This reduction, which was in line with expectations, reflects two major factors. Firstly, one-off projects in the first nine months of 2018 established a higher basis for comparison in the prior-year period. Secondly, a major order was postponed to the fourth quarter of the 2019 financial year. The order backlog at the end of September 2019 decreased by 4.4 % year-on-year from EUR 177.2 million to EUR 169.4 million, but remains at a high level.
The order intake postponed to the fourth quarter comprises a very pleasing order from German premium car manufacturer Audi. Over the coming three years, Process Technologies company bdtronic will supply extensive systems for the production of electric motors. bdtronic reports unbroken growth.Positive outlook thanks to stringent alignment
"We are satisfied with the results we have achieved. Our realignment strategy is beginning to bear fruits. We are confident for the remaining months in the 2019 financial year and the tasks that lie ahead of us in this phase of transition," comments Andreas Krause, Management Board Chairman and CFO of MAX Automation SE.
As already communicated on 22 October 2019, MAX Automation SE increased and specified its forecast for the full 2019 year thanks to the positive course of business over the first nine months of 2019 and continued high demand in the core business. The management confirms the forecast and expects sales for the core business in the range of EUR 320 million to EUR 330 million. Sales for the Group as a whole are expected to reach between EUR 400 and 420 million. The forecast of the core business for operating earnings before interest, tax, depreciation and amortization (EBITDA) is assumed between EUR 26 million and EUR 28 million, while the overall Group is expected to generate an EBITDA of EUR minus 6 million and EUR minus 10 million. The results do not yet include the effects of the first-time application of IFRS 16, which are assumed to have a positive effect of between EUR 3 million and EUR 4 million.
The management of MAX Automation SE will continue to systematically analyze its business areas for potential improvements and consistently implement the adjustments that are required in order to align the Group for the future and generate sustainable profitable growth.Detailed financial information The complete interim report on the first nine months of 2019 of MAX Automation SE is available for download at maxautomation.com.Contact: Katja Redweik Head of Corporate Development/IR MAX Automation SE Tel.: +49 - 211 - 9099 email@example.com
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About MAX Automation SE MAX Automation SE (ISIN DE000A2DA58), based in Düsseldorf, Germany, is an internationally active industrial group for high-tech automation solutions. The Group's operating business is divided into three segments: in its Process Technologies segment, the Group's comprehensive technological know-how makes it an innovation leader in the development and manufacture of proprietary solutions (e.g. dosing, impregnation), particularly for the automotive and electronics industries. MAX Automation's Environmental Technologies segment develops and installs technologically complex plants for the recycling, energy and raw materials industries. The Evolving Technologies division bundles companies with growth potential in the areas of optical solutions, solutions for medical technology, industrial robotics and automation, and packaging solutions.
14.11.2019 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.The issuer is solely responsible for the content of this announcement.The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.deLanguage: English Company: MAX Automation SE Breite Straße 29-31 40213 Düsseldorf
Germany Phone: +49 (0)211 90991-0 Fax: +49 (0)211 90991-11 E-mail: firstname.lastname@example.org Internet: www.maxautomation.com ISIN: DE000A2DA588 WKN: A2DA58 Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate Exchange EQS News ID: 912221 End of News DGAP News Service