Manz initiates restructuring program - Solar segment will be evaluated

As part of its preparation of the interim financial statements for the third quarter of 2015, the Managing Board of Manz AG, lowered the forecast for the full fiscal year. This adjustment was necessary as a result of further order delays in the business segments Energy Storage and Electronics, primarily by customers in Asia. In particular, the macroeconomic cooling off in China as well as the developments on the Chinese capital markets in the past weeks have led to a significantly restrained propensity on the part of customers to invest. In short, this means that a significant amount of sales that had been anticipated for 2015 is now not expected to be realized before the next fiscal year. The Managing Board now expects revenues for fiscal year 2015 between EUR 200 and 210 million and negative earnings before interest and taxes (EBIT) in the mid tens of millions. According to management estimates the equity ratio will be above 40% at the end of fiscal year 2015. As a consequence Manz will initiate a restructuring program. The key measures and connected restructuring costs will be presented at the end of November 2015. The optimization of the cost structure will be at the heart of this program in order to reach the break-even based on the current level of revenues as of the upcoming fiscal year. This cost structure shall form the basis to start growing again, the company writes in a statement. Manz AG will focus on its growth markets Consumer Electronics and Energy Storage. In contrast, the strategic options for the business segment Solar will be evaluated. It is the objective that this business unit will not lead to a further cost burden as of the 2016 financial year.