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MAG Europe announces record sales and positive outlook for 2013

  • MAG Europe group announces preliminary business figures (US GAAP) for 2012
  • Turnaround successful: sales rise by 22 % totaling €684 million – operating results exceed targets
  • Search for a new investor well on track

Göppingen, February 5, 2013 – According to preliminary US-GAAP* figures, MAG Europe group has grown significantly in 2012, achieving record sales of €684 million (2011: €561 million) with MAG IAS GmbH as its core operational unit contributing 86%, or €591 million. As a result, the company has exceeded its targets for 2012.

As expected and indicated by the general market trend, bookings dropped to €595 million (2011: €766 million). This was also due to the group’s restructuring program, realigning its product range and focusing on higher margin core business while still achieving the second highest bookings figures in its history. The machine tool builder expects ongoing strong demand in 2013.

Financial results in 2012 exceeded the group’s targets set in the course of the 2011 restructuring program. With a preliminary profit of €16.2 million (normalized EBIT) compared to a loss of €30 million in 2011, this year’s target was exceeded by €3 million. This turnaround results from effective measures taken in the course of the restructuring program, including cost cuts, product range optimization and settling non profitable projects from 2009 and 2010. Dr. Gerald Weber, MAG Europe group’s CEO says: “We successfully realigned our strategy and turned around the business. The group is now well positioned for further growth and continued technology leadership.”

Taking into consideration one-off restructuring and financing costs, the total results for the year come to a loss of €15.2 million. The forecasts for 2013 see noticeably improved margins and significant profit. The preliminary figures for MAG IAS GmbH according to HGB accounting standards are generally in line with the group’s figures stated above. The annual statement for MAG IAS GmbH is due in June.

In 2012, MAG Europe had secured its growth by extending financing agreements with its long term partners. These consisted mainly of project-related bank guarantees. Apart from its €50 million bond, which was issued in 2011, the group has no financial debt. In addition, the group is still actively pursuing its search for a new investor to enable further growth. Negotiations are ongoing and well on track.

* If not otherwise stated, all figures in this publication are based on internal reporting standards primarily based upon US-GAAP regulations.