© bdriver Electronics Production | August 19, 2016

Cicor: net result stands at CHF minus 0.6 million

Cicor recorded a 10.5% higher order intake and slightly higher sales in Swiss francs for the first six months of 2016. However, net result recorded was CHF minus 0.6 million (1H/2015: CHF 0.6 million).
Large order intake and slight growth in sales in the first half of 2016

Cicor recorded a 10.5% higher order intake and slightly higher sales in Swiss francs for the first six months of 2016. The increase in order intake in the first half of 2016, from CHF 98.7 million to CHF 109.0 million demonstrates that Cicor is well-prepared in a highly competitive market. However, the operating result (EBIT) and net result remained clearly below expectations. Cicor is expecting a higher order intake, moderate increases in sales and a turnaround in the results for the complete 2016 financial year.

In the period under review, the Cicor Group increased sales in Swiss francs by 0.9 percent (CHF 92.9 million; 1H/2015: CHF 92.1 million). The higher order volume of CHF 109.0 million (1H/2015: CHF 98.7 million) will result in higher sales only with some delay. The EBITDA of the Cicor Group in 1H/2016 totalled CHF 5.3 million and was 33.6 percent below the previous year’s result of CHF 7.9 million. The EBITDA margin decreased from 8.6 to 5.7 percent. The EBIT fell by CHF 2.2 million, from CHF 3.4 to 1.2 million. This resulted in a net result of CHF minus 0.6 million (1H/2015: CHF 0.6 million).

Electronic Solutions: High demand for production capacities

The ES Division has successfully adapted to the new market conditions influenced by currency changes and improved order intake, sales and profit in 1H/2016. Compared with the same period in the previous year, the Division’s sales with external customers rose by 8.6 percent, from CHF 65.7 to 71.4 million. Above all, the production sites in Ho Chi Minh City (Vietnam) and Arad (Romania) contributed significantly to this increase in sales. There was an increase of 6.7 percent in the EBIT, from CHF 3.2 to 3.5 million. The EBITDA reached CHF 5.4 million. (1H/2015: CHF 5.1 million), which corresponds to an increase of 6.1 percent.

Advanced Microelectronics & Substrates: Focus on turnaround

The results of the Advanced Microelectronics & Substrates Division were adversely affected by the difficult market environment. In addition, the restructuring in the Division has not yet been reflected positively in the development of earnings. Sales recorded in 1H/2016 fell by 18.2 percent to CHF 21.6 million (1H/2015: CHF 26.4 million). The EBITDA reached CHF 0.4 million. (1H/2015: CHF 3.5 million) and the EBIT was CHF minus 1.7 million (1H/2015: CHF 0.9 million).

Outlook: slight increase in sales in the second half of the year

It is expected that the AMS Division will achieve the turnaround in the second half of 2016. For the 2016 financial year, the Cicor Group management expects an increase of more than 10 percent in order intake, a slight increase in sales, and an end to the downward trend in the results. Based on successfully acquiring new customers and higher order intake, an upturn in sales is expected in 2017. This will only occur under the assumption that the economic environment does not change significantly.


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