- Sales at prior-year level
- Significant increase in sales expected for second half
- EBIT positive at €1.6 million
- Large-scale projects for Solar delayed
- New work areas attract additional order intake
The Singulus Technologies AG reports half-year sales for 2019 of €44.1 million, which is at the prior-year level of €46.4 million. In the second quarter 2019 sales in the amount of €23.3 million (previous year: €29.1 million) were booked. In the entire first half of 2019 earnings before interest and taxes (EBIT) were positive at €1.6 million (previous year: €-1.2 million). In the second quarter 2019 the EBIT was also positive at €0.5 million (previous year: €0.4 million). The EBITDA was considerably improved to €3.6 million compared with the first six months one year ago, during which €-0.3 million were recorded.
In the first six months of the business year 2019 a gross margin in the amount of 32.3 % (previous year: 28.8 %) was achieved. The company currently still expects that sales as well as the EBIT will increase substantially in the second half of the year. The order intake in the first half of 2019 came to €27.1 million (previous year: €65.0 million). As of June 30, 2019, the order backlog stood at €49.0 million.
In the Solar segment Singulus Technologies sees great potential for machines in particular for the CIGS technology. Dr.-Ing. Stefan Rinck, CEO of Singulus Technologies, comments: "It is our target to continue to use this potential and we assume that the currently delayed contract signings will be closed in a timely manner."
As expected, the new segment Life Science is developing positively. Singulus Technologies combines in the segment Life Science the product solutions for Medical Technology, Decorative Coatings as well as machine and service solutions within the Optical Disc segment. The orders for the new work areas Decorative Coating and Medical Technology show that Singulus Technologies continues to consistently implement its plans for additional diversification. This new segment should perform favorably overall and make contributions to sales and earnings.
The headcount within the Singulus Technologies Group increased slightly to 360 employees as of June 30, 2019 (December 31, 2018: 343 employees).
For the current business year, pursuant to IFRS, Singulus Technologies expects a further increase in sales and earnings compared with the previous business year 2018. The key sales and earnings drivers are expected to originate from the Solar division and here from large project orders from several customers for investments in production lines for CIGS solar modules. The basis for these increases is in particular the timely realization of the current major projects for the planned expansions and new CIGS sites of CNBM, respectively.
With regards to the forecasts for the business year 2019 the Executive Board assumes that the signing of the delivery contracts and the receipt of the corresponding prepayments will still materialize in the next couple of weeks. Shortly after that, the customers have to make prepayments in order to operatively start the projects. This is the prerequisite for the projects to make substantial sales and earnings contributions in the current business year. Pursuant to these assumptions, the Executive Board still expects a significant increase in sales within the group of companies in the business year 2019 within a range of €135.0 million to €155.0 million. The operating earnings before interest and taxes (EBIT) should most probably also develop favorably and are projected to be in a range between €6.0 million to €11.0 million.
Singulus Technologies assumes that in particular the global climate policies will result in further expanding solar markets and therefore also in further increasing business activities. With its products, the company is positioned in a favorable market environment. The new work areas Medical Technology and Decorative Coatings should also contribute to an increase in sales and earnings.