After two years of success and growing income, German equipment manufacturer Manz entered 2015 expecting its revenue to reach 320 – 340 million (US $350.6 – $370.8 million) by the end of the year. However, the company soon had to review its forecast for the year results, following the delay and cancellation of several large orders. The new figures were expected to be between 200 and 210 million ($226.3 and $237.6 million).
The total revenues of 222 million ($251.2 million) announced today in the 2015 annual report are slightly above the previous forecast, but still far below 305.9 million ($346.1 million) reached in the previous year. Manzs earnings before interest and taxes (EBIT) amounted to negative 58.2 million.
The company explained its 27.4% year-on-year revenue decrease by the damaging effects of the order cancellations and delays in the electronics and energy storage segments totaling around 140 million ($158,5 million).
Manzs electronic segment revenues of 87.6 million demonstrate the largest year-on-year loss: 59.5% down from 216.2 million in 2014. On top of that, its share in the total income shrank by almost half from 70.7% to 39.5%.
The energy storage segment, on the contrary, demonstrated positive results. Its share of the companys total revenues grew more than four times over the year from 24.1 million or 7.9% to 72.8 million or 32.8%.
The solar segment generated around 20.8 million ($23.5 million) in 2015, which represents a 52% increase from 13.7 million on the previous year. The share of solar business in the Manzs total revenue more than doubled from 4.5% to 9.4%.
Despite the generally disappointing financial results, Manz remains positive in its outlook for 2016. The German manufacturer expects to achieve significant revenue growth and EBIT improvement, as a result of its restructuring program as well as the strategic cooperation with the Chinese Shanghai Electric, which was announced in February this year.
With Shanghai Electric, we have found a partner with long-term interests. This is documented in particular by the intended participating interest of around 30 %. Our future Chinese partner thus will provide additional stability in the company as a financially strong anchor investor together with me as major shareholders, Manzs CEO Dieter Manz announced in the annual report today.
In the first half of 2016, Manz will increase its number of shares by 43%, which will allow Shanghai Electric to purchase 29.9% of shares in the German company. According to the CEO, the last official approvals of the partnership are still pending at the moment, but everything is going as planned.
The cooperation with Shanghai Electric will also help Manz to improve its access to the Chinese market. Because of these new perspectives the German manufacturer has decided to stay in the solar segment. It will focus on the further development and commercialization of its CIGS technology.
With the positive industry outlook in the its main strategic business segments plus the orders on hand, as of February 29, of around 110 million, Manz expects to achieve at least a break-even EBITDA, as well as the significant capital increase in 2016.