MAX Automation SE resolves comprehensive measures to improve profitability and the risk profile
DGAP-News: MAX Automation SE / Key word(s): Disposal
PRESS RELEASE MAX Automation SE resolves comprehensive measures to improve profitability and the risk profile - Withdrawal from special purpose mechanical engineering/assembly lines for the automotive industry planned - Sale of the companies of the IWM Group, ELWEMA and MAX Automation (Shanghai) to be initiated - Divestments will have a positive effect on the MAX Group's profitability, risk profile and financial strength in the medium term Düsseldorf, 09/25/2018 - The Supervisory Board of MAX Automation SE today decided on comprehensive measures to improve the profitability and risk profile of the high-tech mechanical engineering group. For this purpose, the withdrawal from the special purpose mechanical engineering/assembly lines for automotive customers is planned. This is mainly represented in the Group by the companies of the IWM Automation Group (IWM Automation GmbH and IWM Automation Bodensee GmbH), ELWEMA Automotive GmbH and the 51 % investment MAX Automation (Shanghai). A structured sales process will be initiated for these companies, which is expected to be concluded in the course of the coming year. In the current fiscal year, the companies together expect sales of EUR 120 to 130 million. The companies in the Group's five business segments (Mobility Automation, Life Science Automation, Process Technologies, New Automation Technologies and Environmental Technology) have different profitability and risk profiles. MAX has defined the minimum targets as a medium-term EBIT return of 8% of total operating revenue and a return on equity that at least covers the cost of capital. The Managing Directors have intensively analyzed the prospects of the Group companies over the past weeks based on the Group's strategy program 2021. The result is that ELWEMA, the IWM Group and MAX Automation (Shanghai) as an important Chinese activity for automotive clients have good potential, which cannot be sufficiently exploited under the umbrella of MAX. The high level of funds tied up by the necessary pre-financing in the projects of the companies to be sold and their lower average profitability for the Group limit the financing power and the opportunities for further development of the MAX Group. These trends have recently been reinforced by changes in customer requirements. Against this backdrop, the Supervisory Board has decided to sell these companies on a value-optimized basis. Daniel Fink, CEO of MAX Automation SE: "By withdrawing from special purpose mechanical engineering/assembly lines for automotive manufacturers and suppliers, we will have the opportunity to grow more strongly in our other business areas - organically as well as through acquisitions and partnerships. We want to develop the Group with an optimized return and an overall less volatile development. The positioning of MAX as a specialist for high-tech mechanical engineering solutions in sustainably attractive markets will not change. At the same time, the companies to be divested will have the opportunity to develop successfully under a differently positioned owner." The consolidated profit after tax in 2018 will be significantly burdened by operating and extraordinary losses of the IWM Group of approximately EUR 20 million as well as one-off expenses to improve its profitability. The companies to be divested will be reported as discontinued operations in the MAX Automation Group from the third quarter of 2018 on in accordance with IRFS accounting principles. For continuing operations, the Supervisory Board expects sales between EUR 270 and 280 million for 2018 as a whole and earnings before interest and taxes (EBIT) and PPA amortization between EUR 16 and 18 million. Andreas Krause, CFO of MAX Automation SE: "The planned sales will have a positive effect on the profitability, risk profile, indebtedness and financial strength of our Group in the medium term."
25.09.2018 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. |
Language: | 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: | Investor.Relation@maxautomation.com |
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 |
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