News Article
Meyer Burger Technology Announce 2011 Results
- Previously communicated targets on Sales and EBITDA reached
- Consolidated net sales of CHF 1.3 billion for entire Group
- Roth & Rau companies are being focussed on their core competences
- Meyer Burger Technology Ltd has published preliminary, unaudited key figures for the fiscal year 2011 results. The Group confirms that it reached its previously communicated sales target of approximately CHF 1.2 billion. On a consolidated basis (including Roth & Rau) the Group achieved net sales of CHF 1.3 billion.
Roth & Rau AG, which is separately listed in Germany, announced preliminary (unaudited) results for the fiscal year 2011 separately yesterday. According to its announcement, Roth & Rau will report a loss of EUR -107 million on EBIT level, including one-off items of EUR 93 million. The proportion of the loss incurred by Roth & Rau AG, to be included in the consolidated financial statements of Meyer Burger Group, will only have a limited effect on the Group's earnings at EBITDA level (in absolute numbers). From today's point of view, Meyer Burger expects EBITDA on a consolidated basis to be at approximately CHF 275 million. The Group has therefore also achieved its guidance regarding the EBITDA margin.
The consolidation effects from the results of Roth & Rau on an EBIT level at Meyer Burger Group will amount to approximately CHF -110 million. This negative effect on EBIT is mainly due to the ordinary depreciation on intangible assets identified in conjunction with the purchase price allocation and, as already communicated on 8 November 2011, due to a non-recurring impairment on the goodwill of Roth & Rau of approximately EUR 60 million (CHF 74 million). The Company expects also on the level of Group Earnings a substantially lower profit compared to the previous year.
Restructuring and simplification of structures at Roth & Rau
Roth & Rau has decided to implement additional restructuring measures in order to adjust its cost structures to the changed market situation and to ensure rapid and sustainable improvement in its earnings and financial strength. It is planned to combine existing locations (with sales and service companies of Meyer Burger Group) and to reduce the number of employees in Hohenstein-Ernstthal. By merging sales activities, the companies will be able to pool competencies and to generate personnel and administrative cost savings. With all the measures taken since autumn of 2011, Roth & Rau will again be focussed on its core competences.
Given the majority participation of Meyer Burger Technology Ltd (since August 2011), existing syndicate loan agreements of Roth & Rau AG in an amount of EUR 75 million were terminated by Roth & Rau AG. Since 23 December 2011, Roth & Rau has bilateral guarantee credit lines of EUR 42 million by Meyer Burger Technology Ltd through German banks. Furthermore, as of 10 January 2012, Meyer Burger Technology Ltd also issued a binding letter of comfort in favour of Roth & Rau, which secures the allocation of liquidity by Meyer Burger Technology Ltd up to a maximum amount of EUR 50 million, should such need arise.
Further details on the results for the fiscal year 2011 for Meyer Burger Technology Ltd will be published together with the Annual Report 2011 on 22 March 2012.
