Improved sales and profit for Komax

First-half net sales came in at CHF 150.3 million, a 25.5% increase on the corresponding period of the previous year. Group profit after tax (EAT) jumped 87.0% to CHF 14.1 million. Komax expects market activity to remain at a solid level in the second half. In the first six months of 2006, the Komax Group posted consolidated net sales of CHF 150.3 million (H1 2005: CHF 119.7 million), a 25.5% advance on the prior-year figure. After stripping out acquisitions, the increase amounts to 17.3%. Komax lifted sales by 18% in Europe, by 41% in North America and by as much as 67% in Asia. On the basis of its development and production activities in Shanghai, Komax also expects to gain additional momentum in the Chinese market. The company's earnings power was given an unexpectedly strong boost by the increase in sales. Operating profit (EBIT) soared 76.7% to CHF 17.7 million (H1 2005: CHF 10.0 million), representing an EBIT margin of 11.8% (H1 2005: 8.4%). Consolidated profit (EAT) improved by 87.0% to stand at CHF 14.1 million (H1 2005: 7.5 million), resulting in an EAT margin of 9.4% (H1 2005: 6.3%). At present, the market environment for wire-processing machines is extremely favourable, especially in the automotive sector. The increased use of electronics and electrics in motor vehicles is having a positive impact on business for Komax. Two other factors come into play: Many original equipment manufacturers (OEMs) are moving their production facilities to new areas in Eastern Europe, Latin America and China, thereby triggering new rounds of investment. They are also expanding their product portfolios, with the broader range of models subsequently leading to greater investment activity in the wire-processing segment. In the first half of 2006, Komax has created a sound base, putting it on track to achieve the bright growth forecast for the year as a whole. The Group expects market activity to remain high in the second half of the year. In mid-August, Komax entered into a joint venture with a Malaysian systems manufacturer. This collaboration boosts Komax's production capacity in the Asia region, thus strengthening its market position. In spite of the potential slowdown in the US economy, the Group expects a substantial improvement in its full-year result compared with 2005.