MANNEDORF, SWITZERLAND--(Marketwire - August 12, 2010) - Tecan Group AG / Substantial sales
growth for Tecan in first half of 2010 processed and transmitted by Hugin
AS. The issuer is solely responsible for the content of this announcement.
Half year results from continuing operations
· Sales growth of 9.1% to CHF 178.0 million (H1 2009: CHF 163.2
million);
12.2% growth in local currencies
· Operating profit margin at 13.0% (H1 2009: 12.8%); operating
profit
(EBIT) of CHF 23.1 million (H1 2009: CHF 20.8 million)
· Net profit margin of 8.8% (H1 2009: 10.5%); profit of CHF
15.6 million
(H1 2009: CHF 17.1 million)
· Earnings per share of CHF 1.50 (H1 2009: CHF 1.64)
· Strong cash flow from operating activities of CHF 20.8
million (H1
2009: CHF 17.3 million); equivalent to 11.7% of sales
· Order entry increased to CHF 193.4 million (H1 2009: CHF
180.1
million); up 10.7% in local currencies
Half year results including the discontinued Sample Management business
segment
· Sales growth of 2.9% to CHF 187.9 million (H1 2009: CHF 182.6
million); 5.7% growth in local currencies
· Operating profit margin at 11.0% (H1 2009: 11.5%); operating
profit
(EBIT) of CHF 20.6 million (H1 2009: CHF 21.1 million)
· Impairment charges of CHF 27 million
New organization with increased focus on growth strategy; associated
changes to
the Group Executive Committee
· Organization focused on the Life Sciences end customer and
Partnering
OEM customer groups from January 1, 2011
· Financial reporting from 2011 Interim Report onwards divided
into two
new business segments: Life Sciences Business and Partnering Business
Männedorf, Switzerland, August 12, 2010 - The Tecan Group (SIX Swiss
Exchange:
TECN) closed the first half of 2010 with substantial sales growth and a
strong
operating result. Shortly after the end of the first half year, Tecan
signed a
share and asset purchase agreement to sell the Sample Management
activities as
part of its strategic portfolio alignment. The company also announced today
that
it is realigning its organization and changing its management and
reporting
structure to enable it to more effectively implement its strategy for
long-term
profitable growth. The new management structure will be accompanied by
changes
to the Group Executive Committee.
Thomas Bachmann, CEO of Tecan, commented: "We are delighted to have
achieved
such significant growth in the first half of 2010. This shows that our
strategy
execution for long-term profitable growth is on track. In particular our
global
OEM business has performed very successfully. The realignment of
our
organizational and management structure into the Life Sciences
Business and
Partnering Business segments will provide a strong basis to drive
both
businesses forward more strongly. Following the divestiture of the
Sample
Management activities, Tecan will increasingly focus its financial and
personnel
resources on these two businesses."
Half year results from continuing operations
Sales increased by 9.1% to CHF 178.0 million (H1 2009: CHF 163.2 million)
in the
first half of the year and were 12.2% above those of the prior-year period
in
local currencies. The operating profit margin rose to 13.0% (H1 2009:
12.8%). In
the first six months of 2010, Tecan achieved an operating profit (EBIT) of
CHF
23.1 million (H1 2009: CHF 20.8 million). Net profit came in at CHF 15.6
million
and was thus below the prior-year level (H1 2009: CHF 17.1 million). This
was
due to a weaker financial result caused by foreign exchange losses. The net
profit margin was 8.8% of sales (H1 2009: 10.5%). Earnings per share were
CHF
1.50 (H1 2009: CHF 1.64). Cash flow from operating activities increased to
CHF
20.8 million (H1 2009: CHF 17.3 million), which corresponds to 11.7% of
sales.
Tecan increased order entry by 7.4% to CHF 193.4 million, which corresponds
to
growth of 10.7% in local currency terms.
Half year results including the discontinued Sample Management business
segment
As announced on July 15, 2010, the Tecan Group and NEXUS Biosystems, Inc.,
based
in Poway (California, USA), have signed an agreement concerning the sale of
REMP
AG, a wholly-owned subsidiary of Tecan, as well as other related assets.
Under
this agreement, Nexus will acquire all activities of Tecan's Sample
Management
business segment. The Sample Management business segment is therefore
presented
as a "discontinued operation."
Sales including the Sample Management business segment increased by 2.9%
to CHF
187.9 million (H1 2009: CHF 182.6 million) in the first half of the
year, and
were 5.7% above the previous year's level in local currencies. Operating
profit
(EBIT) reached CHF 20.6 million (H1 2009: CHF 21.1 million), while the
operating
profit margin was 11.0% of sales (H1 2009: 11.5%).
Regional development and additional information on continuing operations
In Europe, sales in Swiss francs increased by 25.1%, being negatively
impacted
by the exchange rate development of the euro versus the Swiss franc.
European
sales were 28.2% above the prior-year level in local currency terms. The
increase in sales is mainly the result of a very strong OEM business with
diagnostic companies. End-customer business, on the other hand, was weaker
and
its performance remained mixed across the various European countries.
In North America, sales decreased by 3.7% in Swiss francs. This figure was
also
negatively impacted by the exchange rate development of the US dollar
versus the
Swiss franc. Sales in North America remained at the prior-year level in
local
currency terms. The OEM components business grew considerably, while North
American end-customer business was slightly below the prior-year level.
In Asia, sales were 1.1% below the prior-year level in Swiss
francs, but
unchanged in local currency terms. Sales in Japan declined, which was
largely
the result of a basis effect caused by a major contract in the previous
year.
Sales in China again recorded double-digit growth.
The strategically important global OEM business grew by 52.4%
during the
reporting period. This positive development is primarily the
result of
extraordinary high demand for OEM instruments from major existing
customers in
the first half of the year, but should balance itself out again to a
certain
extent over the year as a whole. OEM business increased to a level where
it now
constitutes 44.2% of total sales (H1 2009: 31.7%).
The recurring revenues of the services and consumables business
together
accounted for 32.4% of total sales (H1 2009: 33.6%), including
increased
consumables sales of 7.7% of total sales (H1 2009: 7.1%).
Information by business segment
Components & Detection
Sales in the Components & Detection business segment increased 8.4% to CHF
52.4
million in the first half of 2010 (H1 2009: CHF 48.3 million) and were up
12.1%
in local currency terms. Compared with the prior-year period, there
was a
considerable increase in demand for OEM components and a slight
increase for
detection devices.
Components & Detection recorded considerable growth in order entry
during the
reporting period. Thanks to higher sales volumes and an improved cost
basis, the
business segment's operating profit margin increased significantly, from
10.5%
in the previous year to 15.1% of sales. Operating profit was CHF 8.5
million,
56.0% up on the previous year (H1 2009: CHF 5.5 million).
Liquid Handling & Robotics
The Liquid Handling & Robotics business segment generated sales of CHF
125.7
million (H1 2009: CHF 114.9 million) in the reporting period. Sales
climbed by
9.3% in Swiss francs and 12.3% in local currencies. OEM business in the
Liquid
Handling & Robotics segment grew considerably in the first half of the
year. The
service and consumables businesses also continued to perform well. Order
entry,
which was also driven by OEM business, was significantly higher in the
first
half of the year than the prior-year period.
The product mix in the first half and the additional investments to
implement
the growth strategy, which largely accrued to the Liquid Handling &
Robotics
business segment, had a negative impact on the operating profit margin,
which at
14.7% of sales fell below the prior-year level (H1 2009: 16.4%).
Operating
profit was CHF 18.5 million (H1 2009: CHF 19.0 million).
Sample Management (discontinued operation)
Sales in the discontinued Sample Management business segment totaled CHF
10.2
million in the first six months of 2010, 47.5% below the prior-year
period (H1
2009: CHF 19.4 million). The operating loss was CHF 2.5 million,
following on
from a small operating profit of CHF 0.3 million in the same period of
2009.
Non-cash effective impairment charges amounted to CHF 27.0 million in the
first
half of 2010. Additional transaction costs of an estimated CHF 1
million and
further non-cash effective impairment charges of around CHF 4
million are
anticipated for the second half of 2010 since they could not be booked
in the
first half of the year.
Strong balance sheet - high equity ratio
Tecan's equity ratio increased during the reporting period and reached
64.0% as
of June 30, 2010 (December 31, 2009: 58.2%). Net liquidity (cash and
cash
equivalents minus bank liabilities and loans) was CHF 83.9 million as
of the
balance sheet date (December 31, 2009: CHF 80.6 million). Shareholders
approved
an increase in the dividend for fiscal year 2009 to CHF 1.00 per
registered
share at the Tecan Group Annual General Meeting, up from CHF 0.90 the
previous
year. The payout took place on April 28, 2010.
New organization with stronger focus on growth strategy
In order to implement its strategy for long-term profitable growth even
more
sustainably, Tecan is refocusing its organizational and management
structure on
the end customer and OEM customer groups. Instead of the
current
product-oriented Components & Detection, Liquid Handling & Robotics and
Sample
Management business segments, for the latter of which a sales
agreement was
signed on July 15, 2010, the Tecan Group will in future be made up of
the two
business segments Life Sciences Business (end-customer business) and
Partnering
Business (OEM business). Tecan is also creating or realigning
Group-wide
functions to better exploit synergies in research, development,
procurement and
production across various locations, in order to speed up innovation and
further
increase overall operating efficiency.
The new organization will come into effect on January 1, 2011. With effect
from
this date, Tecan Group AG's Group Executive Committee will be adapted to
the new
organization and reduced to six members. The Group Executive Committee
will
then consist of Chief Executive Officer Thomas Bachmann, Chief Financial
Officer
Dr. Rudolf Eugster, the Heads of the two business segments Life
Sciences
Business and Partnering Business and the Heads of the Development &
Supply
Operations and Science & Technology functions.
Matthew Robin, who is currently in charge of the Liquid Handling &
Robotics
business segment, will head up Partnering Business. Management of
the
Development & Supply Operations function will be taken over by Dr.
Jürg
Dübendorfer, who is currently the Group Executive Committee member
responsible
for the Services & Consumables business unit. Tecan will make a decision
and an
announcement about the management of the Life Sciences Business
segment and
Science & Technology function at a later date. The remaining members
of the
current Group Executive Committee will continue to perform their previous
duties
within the new Group organization or will assume new responsibilities
from
January 1, 2011, but will not be part of the newly formed Group
Executive
Committee.
The Tecan Group's financial reporting will be divided into the two new
business
segments Life Sciences Business and Partnering Business from the 2011
Interim
Report onwards.
Outlook for continuing operations
Demand for OEM instruments was extraordinarily high in the first half of
the
year and sales generated with OEM customers are expected to grow at a
smaller
rate in the second half of the year. In fiscal year 2010 Tecan is aiming
for
sales growth in its continuing operations of between 6% and 8% in local
currency
terms.
Following the divestiture of the Sample Management activities, Tecan will
increasingly focus its resources on the growth projects in the Life
Sciences
end-customer and Partnering OEM businesses. For 2010, the company is
expecting
additional investments of up to CHF 3 million for this purpose. Including
these
additional investments, Tecan expects an operating profit margin of 13.5%
to
15% for 2010, corresponding to an operating profit margin of 14.5% to 16.0%
in
2009 constant currencies.
Webcast
A conference call discussing the results for the first half of 2010 will
take
place today at 9:00 a.m. (CET). The event will also be relayed by live
audio
webcast, which interested parties can access at www.tecan.com. A link to
the
webcast will be provided immediately prior to the event.
The dial-in numbers for the conference call are as follows:
Participants from Europe: +41 91 610 5600 or +44 207 107 0611 (UK)
Participants from the US: +1 (1) 866 291 4166
Participants should if possible dial in 15 minutes before the start of the
event.
Next key dates
- The 2010 Annual Report will be published on March 10, 2011.
- The Annual General Meeting of Tecan's shareholders will take
place in
Zurich on April 19, 2011.
About Tecan
Tecan (www.tecan.com) is a leading global provider of laboratory
instruments and
solutions for the biopharma, forensic and diagnostic industries. The
company
specializes in the development, production and distribution of automation
solutions for laboratories in the life sciences sector. Its clients include
pharmaceutical and biotechnology companies, university research
departments,
forensic and diagnostic laboratories. As an original equipment manufacturer
(OEM), Tecan is also a leader in developing and producing OEM instruments
and
components that are then distributed by partner companies. Founded in
Switzerland in 1980, the company has manufacturing, research and
development
sites in both North America and Europe and maintains a sales and service
network
in 52 countries. In 2009, Tecan generated sales of CHF 392 million (USD
361.2
million; EUR 259.6 million). Registered shares of Tecan Group are traded on
the
SIX Swiss Exchange (TK: TECN/Reuters: TECZn.S/Swiss security number:
1210019).
For further information:
Tecan Group
Dr. Rudolf Eugster Martin Brändle
Chief Financial Officer Head of Corporate Communications &
Investor Relations
Tel. +41 (0) 44 922 84 30
investor@tecan.com Fax +41 (0) 44 922 88 89
www.tecan.com
- For financial tables, please follow the link to pdf -
[HUG#1437274]
--- End of Message ---
Tecan Group AG
Seestrasse 103 Männedorf Switzerland
ISIN: CH0012100191;
Press Release H1 / 2010 (PDF):
http://hugin.info/100384/R/1437274/382095.pdf
Interim Report 2010 (PDF):
http://hugin.info/100384/R/1437274/382096.pdf
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Source: Tecan Group AG via Thomson Reuters ONE
