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Electronics Production | February 04, 2011

Komax reports successful 2010

The Komax Group reports that new orders totalled CHF 357.0 million (+62%) and net sales rose by approx. 60% to approx. CHF 340 million (2009: CHF 208.4 million) in 2010.
For the year as a whole, the Group's management anticipates a further rise in the EBIT margin compared to the first half of the year. The healthy order backlog at year-end promises a good start to the 2011 business year.

The strong recovery which took place over the first six months of 2010 on an unexpected scale persisted into the second half in the Wire, Solar and Medtech segments, and the Komax Group was able to substantially increase its net sales from CHF 208.4 million in 2009 to approx. CHF 340 million in 2010 (+60%). Management expects the EBIT margin for 2010 as a whole to exceed the margin of 7.8% reported in the first half of the year.

Uneven trend in segment operating results

The Wire segment benefited especially from the recovery in the automotive industry, with Asia making the largest contribution to its growth. In addition, the accessories, spare parts and service business also displayed an encouraging trend. Thanks to the resulting increase in sales and the significant adjustments made to cost structures back in 2009, the segment was able to substantially improve its operating margin compared to the previous year.

In the Solar segment, the crystalline and thin-film businesses presented contrasting pictures. While demand in the crystalline sector grew healthily, it remained weak in the thin-film business. Komax responded to this development by reducing capacities at its Rotkreuz site and relocating these activities to York (USA), where the Group had established a new plant in 2009. The operating result in the Solar segment remained negative overall, depressed by the thin-film business and the associated costs for restructuring measures. However, the crystalline business, which constitutes Komax Solar's core activity, generated a clear positive result in 2010.

In the Medtech segment, a positive sales trend was mainly driven by business with key customers from Asia. However, additional costs associated with individual projects, the as yet still relatively low share of repeat orders, and reorganization costs negatively affected the operating result.

Outlook

The high expected level of new orders for the second half of 2010 resulted in an annual order intake figure of CHF 357.0 million (+62%). In light of the healthy order backlog at the end of the year, management anticipates a good start to the 2011 business year.

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