SÜSS MicroTec expands restructuring

“Due to a reevaluation of our business situation in permanent bonding and the ongoing losses in this product line, the management has decided to expand the restructuring measures, which have been taken in the second quarter this year, and to cease production of cluster systems for permanent bonding applications,” the company explains in a press release. The development and production of the manual permanent bonding systems are not affected by this action. In this context one-off expenses of approximately EUR 8.3 million can be expected in the fourth quarter 2013. This one-off effect includes EUR 6.7 million for write-offs on inventories (raw materials, unfinished goods as well as demonstration tools) and EUR 1.6 million of precautionary provisions formed for single customer projects. With this move the management expects to pronouncedly reduce the losses of the Substrate Bonding Division. Along with this announcement, the company also provided a revision of its full year guidance for 2013. The sales expectation of formerly EUR 150 million is revised to a bandwidth of EUR 125 - EUR 135 million. The reason is a potential delay in the sales recognition of several machines, which have already been shipped but are still waiting for final acceptance of the customer. The tools include temporary and permanent bond cluster systems for international customers. Due to the lower overall sales level, the EBIT will most likely not reach in the original range of minus EUR 10 to minus EUR 15 million. Taking the one-off expenses into account an EBIT in the range of minus EUR 22 to minus EUR 27 million can be expected. The EBIT for 2013 includes approximately EUR 14.3 million charges for the restructuring of the product line permanent bonding. For the fourth quarter 2013, the Company expects a robust order intake in the range of EUR 30 - EUR 40 million.