Manz AG publishes report on the first quarter of 2017

11.05.2017 | Reutlingen

• Revenues of 47.6 million euros, with significantly improved EBIT of 20.0 million euros
• Successful start of strategic cooperation of Manz AG with Shanghai Electric Group and the Shenhua Group for the further development and marketing of CIGS thin film solar technology
• CEO Dieter Manz plans move to Supervisory Board

Manz AG, a globally active high-tech equipment manufacturer with an extensive technology portfolio covering the three strategic business units of “Electronics”, “Solar” and “Energy Storage” is publishing its financial report for the first quarter of 2017 today. A milestone in company history was achieved in the first three months of 2017, with the contract closing of the strategic cooperation with the Shanghai Electric Group and the Shenhua Group in the field of CIGS thin film solar technology. The large orders for a CIGS production line with a capacity of 306 MW and a CIGS research line with a capacity of 44 MW meant that Manz AG received the largest order in the company’s history, with a volume of 263 million euros. In total, Manz AG’s order volume amounted to 319.8 million euros by March 31, 2017 (March 31, 2016: 96.3 million euros).

The as-expected weak performance in the first quarter of 2017 led to a reduction in revenues by 26.2 %, to 47.6 million euros (previous year: 64.5 million euros), not least due to the development of the Energy Storage business unit. This segment proved to be a revenue driver in the same period last year due to the one-time processing of a major order. With revenues of 6.1 million euros, the Energy Storage business unit accordingly achieved about 12.8 % of total revenues, compared to 27.8 million euros or 43.2 % in the previous year. By contrast, with revenues of 19.7 million euros, the Electronics business unit achieved a growth of 28.8% and, at 41.3%, the largest proportion of total revenues (previous year: 15.3 million euros or 23.7 %). Manz also increased revenues by 66.6 % in the Contract Manufacturing segment, to 15.6 million euros and 32.8 % (previous year: 9.4 or 14.5 %). The Solar segment contributed 1.5 million euros to total revenues, or 3.1 % (previous year: 6.2 million euros or 9.7 %); the major orders received will affect revenues only starting from the second quarter of 2017. The Service segment was responsible for revenue contributions of 4.8 million euros or 10.0 % of total revenues (previous year: 5.8 million euros or 9.0 %).

Dieter Manz, CEO and founder of Manz AG, commented: “With revenues of 47.6 million euros, business development in the first quarter of 2017 remains subdued. Looking at our forecast of a significant increase in revenues to at least 350 million euros and positive earnings before interest and taxes, we strongly believe that Manz AG continues to be on target. In addition to pioneering developments in the business unit Solar, good prospects in the Electronics business unit due to continuing momentum in the display business, good growth prospects in the Energy Storage business unit and the Talus joint venture in the Contract Manufacturing segment keep us optimistic about 2017.”

With earnings before interest, taxes, depreciation and amortization (EBITDA) of 23.2 million euros in the first quarter of 2017, Manz AG achieved significantly increased profitability in comparison to the preceding year (previous year: 0.9 million euros), which can be particularly traced to a one-time accounting effect of 34.4 million euros from the sale of Manz CIGS Technology GmbH. Earnings before interest and taxes (EBIT) improved to 20.0 million euros in the reporting period (previous year: -2.5 million euros). Consolidated net results came to 18.8 million euros (previous year: -3.2 million euros), corresponding to per-share results of 2.43 euros (previous year: -0.58 euros).

Dieter Manz goes on to say: “With the strategic cooperation with the Shanghai Electric Group and the Shenhua Group in the field of CIGS technology, we have laid the foundation for the sustained and profitable development of our business and captured immense growth and revenue potential for the future. We must now bring this cooperation to life and drive the marketing of CIGS technology forward. Manz has begun a new, promising chapter in the company’s history. That is why I am firmly convinced that now is the right time to place the leadership of Manz AG in the hands of an experienced management team. I would like to use my experience to continue providing all the support that I can to the company as its main shareholder and as a member of the Supervisory Board.”

Thus, Dieter Manz intends to be elected to the Supervisory Board at the regular Annual General Meeting on July 4, 2017, and to resign from Manz AG’s Managing Board. Management of the company will be transferred into the hands of an experienced management team. In this context, Eckhard Hörner-Marass, the current Chief Technology Officer, will assume the duties of the Chief Executive Officer.