MAX Automation with robust business development in the nine-month 2020 period
DGAP-News: MAX Automation SE
/ Key word(s): 9 Month figures
- Order intake affected by corona crisis and down 24.7% y-o-y at Group level to mEUR 210.8
- Group sales decreased by 24.2% y-o-y to mEUR 225.1
- Group EBITDA improved to mEUR 7.3 (9M 2019: mEUR -4.6)
Nevertheless, the MAX Automation Group could not completely evade the economic crisis triggered by the COVID-19 pandemic. Consequently, the general reluctance to invest resulted at Group level in a 24.7% decline in order intake to mEUR 210.8 (9M 2019: mEUR 279.9). Order intake in the core business decreased by 26.1% to mEUR 171.7 (9M 2019: mEUR 232.2). Towards the end of the reporting period, MAX Automation was able to identify signs of recovery in the placing of orders. However, there were still delays in the placement of major e-mobility projects for impregnation technology in the Process Technologies division, for example. The Environmental Technologies segment also recorded a decline in order intake due to lower demand from the USA and Europe. Order intake in the Evolving Technologies business unit was characterized on the one hand by low demand in press automation and robotics. On the other hand, demand for medical technology and packaging automation remained encouraging. In the Non-Core Business, the decline in order intake resulted from the plant closures of the IWM Automation companies. The remaining ELWEMA achieved an overall good Q3 2020 with high order intake for modification and repeat projects.
At Group level, as expected, the order backlog as of 30 September 2020 fell by 18.9% to mEUR 183.2 (9M 2019: mEUR 225.9) in the wake of the COVID-19 pandemic and the plant closures of the IWM Automation companies. The order backlog in the Core Business decreased by 25.8% to mEUR 125.7 as of 30 September 2020 (9M 2019: mEUR 169.4). Since there were no pandemic-related cancellations of projects, a solid basis for Q4 2020 is in place.
Group sales of mEUR 225.1 were well below the previous year's level (9M 2019: mEUR 297.0). Project delays caused by the COVID-19 pandemic led to a 15.2% decline in core business sales to mEUR 200.3 (9M 2019: mEUR 236.1) while margins remained intact. Sales in Process Technologies fell by almost a third, while in the Evolving Technologies segment, sales in medical technology and packaging automation partially cushioned the declines in press automation and robotics. Environmental Technologies experienced few restrictions and was able to continue production under almost normal conditions. Thanks to the high level of order backlog, sales were on a par with the previous year.
In an environment shaped by the global economic impact of the pandemic, MAX Automation achieved earnings before interest, taxes, depreciation and amortization (EBITDA) of mEUR 7.3 (9M 2019: mEUR -4.6) in the first nine months of financial year 2020. The significantly reduced loss situation in Non-Core Business contributed in particular to this positive development. As expected, EBITDA in the core business declined but was still clearly positive at mEUR 15.5 (9M 2019: mEUR 26.4) as a consequence of strict cost discipline with noticeably reduced operating costs and consistently high margins.
Cash and cash equivalents increased by 4.2% to mEUR 42.3 as of 30 September 2020 (31 December 2019: mEUR 40.6). Cash flow from operating activities with an inflow of mEUR 6.4 was significantly above the previous year's level (9M 2019: outflow of mEUR 34.6). The Group's cash position continues to ensure sufficient flexibility with slightly increased net debt compared to 2019.
The Supervisory Board of MAX Automation SE is satisfied with the development in 2020 so far. As a result of the more crisis-proof orientation, it is cautiously optimistic for the fourth quarter of 2020. The again increasing COVID-19 infection figures still make it difficult to forecast business development. Since the initial catch-up effects in Q3 2020 are expected to slow down significantly for the rest of the year, the Supervisory Board still abstains from issuing a new outlook.
The complete interim report for the nine-month 2020 period of MAX Automation SE is available for download at https://www.maxautomation.com/en/investor-relations/financial-reports/.
|Company:||MAX Automation SE|
|Breite Straße 29-31|
|Phone:||+49 (0)211 90991-0|
|Fax:||+49 (0)211 90991-11|
|Listed:||Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate Exchange; BX|
|EQS News ID:||1147464|
|End of News||DGAP News Service|