Tecan records stable sales and increased operating profit in the first half of 2013
(Thomson Reuters ONE) -
Tecan Group AG /
Tecan records stable sales and increased operating profit in the first half of
2013
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* Sales of CHF 181.8 million (H1 2012: CHF 182.2 million)
* Stable sales despite tough economic environment
* Sales 0.2% (0.5% in local currencies) below prior-year figure
* Order entry of CHF 189.2 million (H1 2012: CHF 179.6 million)
* Growth of 5.3% (5.1% in local currencies)
* Operating profit (EBIT) of CHF 23.1 million (H1 2012: CHF 22.4 million)
* Operating profit margin increased to 12.7% of sales (H1 2012: 12.3%)
* Net profit of CHF 16.5 million (H1 2012: CHF 17.7 million)
* Net profit margin of 9.1% of sales (H1 2012: 9.7%)
* Earnings per share of CHF 1.51 (H1 2012: CHF 1.64)
* Cash flow from operating activities of CHF 5.5 million (H1 2012: CHF -8.0
million)
* Cash flow from operating activities of CHF 28.4 million, excluding
prefinancing of an OEM development project (H1 2012: CHF 15.0 million)
* Outlook for full-year 2013 confirmed
* Significant progress in major development programs
* OEM development program Dako Omnis successfully completed; first
instruments for market launch delivered
Männedorf, Switzerland, August 14, 2013 - The Tecan Group (SIX Swiss Exchange:
TECN) closed the first half of 2013 with stable sales and an increased operating
profit. Despite the tough economic environment, sales reached approximately the
prior-year value, down 0.2%, or 0.5% in local currencies (H1 2012:
CHF 182.2 million). After an anticipated difficult first quarter, double-digit
sales growth was achieved in the second quarter. Order entry increased by 5.3%
to CHF 189.2 million (H1 2012: CHF 179.6 million) in the first six months of the
year, corresponding to growth of 5.1% in local currencies. As a result, order
entry exceeded sales in the first half of 2013, leading to an increased order
backlog at the end of the reporting period.
Operating profit (EBIT) increased by 3.3% to CHF 23.1 million in the first half
of 2013 (H1 2012: CHF 22.4 million) despite stable sales. At 12.7% of sales, the
operating profit margin also exceeded the prior-year figure (H1 2012: 12.3%).
Net profit amounted to CHF 16.5 million (H1 2012: CHF 17.7 million) in the first
six months of the year. The decline is the result of a lower financial result
attributable to currency hedging measures. The net profit margin reached 9.1% of
sales (H1 2012: 9.7%), while earnings per share were CHF 1.51 (H1 2012: CHF
1.64). Cash flow from operating activities increased to CHF 5.5 million (H1
2012: CHF -8.0 million). Excluding an OEM development project that Tecan is
prefinancing, cash flow from operating activities amounted to CHF 28.4 million
(H1 2012: CHF 15.0 million).
Tecan CEO David Martyr commented: "Despite the continuing tough economic
environment in the first half of 2013, Tecan's sales remained at approximately
the same level as in 2012. I am pleased that we have managed to increase our
operating profit as well as the operating profit margin. As we anticipated, the
first quarter was very difficult, with uncertainty around the impact of
austerity measures imposed in many countries. In the second quarter, however, we
enjoyed a noticeably positive trend with double-digit sales growth and increased
order entry.
We have achieved important progress in implementing our priorities for 2013. The
development of the key product Dako Omnis was successfully completed and we have
started deliveries for commercial distribution. As regards individual markets
and products, we enjoyed significant growth in China and in the component
business. We confirm the forecast for 2013 that we issued in the spring, but
note that the impact of market developments on our Life Sciences Business
continues to be hard to predict," Martyr continued.
Information by business segments
Life Sciences Business (end-customer business)
As anticipated, the Life Sciences Business segment was affected in the first
half of the year by the austerity measures and budget cuts in Europe and North
America, which unsettled the markets. Sales in this business segment decreased
by 3.2% to CHF 97.6 million (H1 2012: CHF 100.8 million), while in local
currencies, sales were 3.5% below the prior-year period. The decline in sales in
the first six months occurred entirely in the first quarter, while the second
quarter was characterized by a markedly positive growth trend sequentially.
Also, sales in the second quarter increased slightly compared with the prior-
year period. At the product level, sales of liquid handling platforms in the
first six months were below the 2012 level. By contrast, Tecan achieved sales
growth in detection devices and services and consumables. Overall, order entry
in the Life Sciences Business was also below the prior-year figure, but showed
solid growth in the second quarter.
The segment's operating profit in the first half of 2013 was CHF 1.1 million (H1
2012: CHF 4.8 million). The decline is principally the result of lower sales.
The profit margin reached 1.0% of sales (H1 2012: 4.4%). The Life Sciences
Business is, to a certain degree, subject to seasonality and therefore generates
the majority of the segment operating profit in the second half of the year.
Partnering Business (OEM business)
The Partnering Business segment generated sales of CHF 84.2 million during the
reporting period (H1 2012: CHF 81.4 million), which corresponds to an increase
of 3.5% in Swiss francs and 3.2% in local currencies. Components, services and
consumables again posted strong growth in the first half of 2013. Sales of
instruments declined, as one partner phased out a product line and, following a
company acquisition, another partner shifted the focus of its combined product
portfolio.
Order entry in the Partnering Business increased significantly in the first half
of the year, growing at a double-digit percentage rate. This led to a
significantly higher order backlog at the end of the reporting period.
The Partnering Business segment increased its operating profit margin to 29.2%
of sales in the first six months of 2013 (H1 2012: 25.6%). At CHF 25.0 million,
operating profit was therefore 16.9% above that of the prior-year period (H1
2012: CHF 21.4 million).
Additional information
Regional development
In Europe, sales in Swiss francs were 2.8% below the prior-year period and
decreased by 3.7% in local currencies. This decrease is primarily the result of
lower sales in the Life Sciences Business due to the continuing tough economic
situation in some European countries.
In North America, sales rose by 1.6% in Swiss francs and 0.9% in local
currencies. Growth in this region was driven by a considerable increase in sales
in the component business, which is part of the Partnering Business. Sales in
the Life Sciences Business in North America were also below the prior-year
figure, as government budget cuts unsettled the market.
Sales in Asia grew by 2.5% in Swiss francs and by 6.4% in local currencies. Both
business segments were able to contribute to growth. Sales in China again
increased at a double-digit percentage rate.
Recurring sales of services and consumables
Recurring sales of services and consumables increased by 7.8% in the first half
of 2013, or by 7.5% in local currency terms, and accounted for 35.1% of total
sales (H1 2012: 32.5%). As part of this figure, sales of consumables again
increased at a double-digit percentage rate, growing by 17.0% in Swiss francs
and by 15.8% in local currencies to a share of 11.2% of total sales (H1
2012: 9.6%).
Research and development
In the first half of 2013, research and development spending was at 11.7% of
sales (H1 2012: 12.3%) or CHF 21.3 million (H1 2012: CHF 22.5 million). All
told, research and development activities amounted to CHF 54.0 million gross (H1
2012: CHF 55.3 million). This figure also includes the development costs
capitalized in the balance sheet (CHF 4.2 million gross) and development costs
for OEM partners (CHF 29.8 million).
Tecan announced at the beginning of June that it had successfully completed the
major Dako Omnis development program. The new platform for automated advanced
staining of tissue samples was co-developed with Dako and is manufactured by
Tecan. Dako is an Agilent Technologies company (NYSE: A). The Dako Omnis sets
new standards for automated tissue-based cancer diagnostics and Tecan has
delivered the first instruments for the market launch.
For the second major OEM development program, P14, Tecan continues to expect the
start of commercial supply of instruments to its partner around the end of 2013.
As communicated before, the launch of Tecan's next generation of liquid handling
platforms is anticipated in 2014.
Strong balance sheet - high equity ratio
Tecan's equity ratio increased further during the reporting period and reached
71.4% as of June 30, 2013 (December 31, 2012: 69.4%). Net liquidity (cash and
cash equivalents less bank liabilities and loans) amounted to CHF 130.3 million
(December 31, 2012: CHF 141.3 million). The Company's share capital remained
unchanged at CHF 1,144,458 at the reporting date (June 30, 2013), consisting of
11,444,576 registered shares with a nominal value of CHF 0.10 each.
At the Tecan Group Annual General Meeting on April 17, 2013, shareholders again
approved a higher dividend versus the previous year of CHF 1.50 per registered
share. The dividends of CHF 16.5 million in total (H1 2012: CHF 13.5 million)
were partly paid out from the available capital contribution reserve. The payout
took place on April 24, 2013.
Outlook for full-year 2013 confirmed
Tecan expects accelerated sales growth in the second half of 2013 for both
business segments.
In an environment that remains hard to predict, Tecan continues to expect
moderate growth in local currencies in the Life Sciences Business segment in
2013, but the possibility of a decline in sales in this segment cannot be
excluded.
Based on customer forecasts for existing products, in light of the commencement
of deliveries of Dako Omnis and the anticipated continuation of dynamic growth
in the component business, Tecan continues to expect good sales growth for the
Partnering Business segment in fiscal year 2013.
Overall, Tecan continues to expect sales growth for full-year 2013 to be in the
mid-single-digit percentage range in local currencies. Tecan continues to
anticipate that operating profit margin will grow by around 50 basis points in
2013 compared with 2012.
Financial Report and Webcast
The full 2013 Interim Report can be accessed on the company website
www.tecan.com under Investor Relations. An iPad App for the Tecan Financial
Reports is available from the App Store.
A conference call discussing the results in the first half of 2013 will take
place today at 10 a.m. (CEST). The presentation will also be relayed by live
audio webcast, which interested parties can access at www.tecan.com. A link to
the webcast will be provided immediately prior to the event.
The dial-in numbers for the conference call are as follows:
For participants from Europe: +41 58 310 5000 or +44 203 059 5862 (UK)
Participants from the US: +1 (1) 866 291 4166
Participants should if possible dial in 15 minutes before the start of the
event.
Key upcoming dates
* A Capital Market Day for analysts and institutional investors will take
place on September 11, 2013, in Männedorf/Zurich.
* The 2013 Annual Report will be published on March 11, 2014.
* The Annual General Meeting of Tecan's shareholders will take place in Zurich
on April 16, 2014.
About Tecan
Tecan (www.tecan.com) is a leading global provider of laboratory instruments and
solutions in biopharmaceuticals, forensics and clinical diagnostics. The company
specializes in the development, production and distribution of automated
workflow solutions for laboratories in the life sciences sector. Its clients
include pharmaceutical and biotechnology companies, university research
departments, and forensic and diagnostic laboratories. As an original equipment
manufacturer (OEM), Tecan is also a leader in developing and manufacturing OEM
instruments and components that are then distributed by partner companies.
Founded in Switzerland in 1980, the company has manufacturing, research and
development sites in both Europe and North America and maintains a sales and
service network in 52 countries. In 2012, Tecan generated sales of
CHF 391 million (USD 416 million; EUR 323 million). Registered shares of Tecan
Group are traded on the SIX Swiss Exchange (TECN; ISIN CH0012100191).
For further information:
Tecan Group
Dr. Rudolf Eugster Martin Brändle
Chief Financial Officer Head of Corporate Communications &
Investor Relations
investor(at)tecan.com Tel. +41 (0) 44 922 84 30
www.tecan.com Fax +41 (0) 44 922 88 89
Press Release with financial tables (PDF):
http://hugin.info/100384/R/1722819/574084.pdf
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Source: Tecan Group AG via Thomson Reuters ONE
[HUG#1722819]
Unternehmensinformation / Kurzprofil:
Datum: 14.08.2013 - 07:00 Uhr
Sprache: Deutsch
News-ID 287479
Anzahl Zeichen: 15290
contact information:
Town:
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Kategorie:
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