Friday, October 26, 2012
Singulus Adjusts Full-Year Targets For 2012
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Following lower than expected sales for semiconductor, solar and
optical disc machinery, German equipment manufacturer Singulus
implemented measures, which had a negative impact on the company's
key financial figures.
Singulus said the development of its three main business segments
- Semiconductor, Solar and Optical Disc - were mixed in the current
business year. Although the company's semiconductor segment has
developed favorably, the company's solar division business
activities were difficult due to the lack of market recovery in
2012. In addition, Singulus does not expect large investments in
Blu-ray production equipment for this year.
All these have a negative impact on the development of Singulus'
business results for the year 2012.
The company's Executive Board has resolved drastic measures. In the
Optical Disc segment this mainly affects the company's foreign
subsidiaries and the product segment "Mastering". Furthermore, the
work area of machines for wet-chemical production steps at the
subsidiary SINGULUS STANGL SOLAR GmbH ("Wet-Chemical") is affected
by the decline in the market for silicon-based solar cells.
Accordingly, at the end of the business year 2012 Singulus will
reduce the headcount at its Furstenfeldbruck site by about 40 %.
"The impairment review of all balance sheet items resulted in
provisions, write-offs on inventories and on accounts receivable as
well as write-downs in the amount of €43.3 million for the
current quarter 2012" Singulus said. "The majority of the necessary
balance sheet adjustments do not result in additional cash
outflows. SINGULUS has sufficient liquid funds. The balance sheet
continues to remain stable and is still very solid with an equity
ratio of approximately 40 %," the company added.
For 2012, Singulus expects sales of about €83.5 million
(previous year: €121.8 million) for the first nine months and
a negative result of about €10.9 million (previous year:
€6.3 million) excluding the aforementioned extraordinary
charges. The order intake in the first nine months stood at
€110.6 million (previous year: €137.0 million). The order
backlog amounted to €53.9 million as of September 30, 2012
(previous year: €50.8 million). Due to the trends in the
Optical Disc segment, Singulus expects sales for the full-year 2012
to also be in a range from €100 to 115 million (previous year:
€160.0 million). This will lead to an overall negative result
including extraordinary charges in a range from - €54 to 56
million for 2012.
Singulus plans to gradually implement a structural change from a
pure supplier of machines in Optical Disc to a provider for vacuum
technology in different segments such as Optical Disc, Solar and
The company says it is able to finance larger projects in the Solar
segment, expand its partnerships with producers of thin-film solar
cells, develop new products in the Solar division and also develop
manufacturing equipment for the next generation of Blu-ray Discs.
Since the market for Blu-ray Disc continues to grow at double-digit
rates in 2012, Singulus expects stable sales and earnings
In the thin-film technology the company says its CIS/CIGS SINGULUS
is excellently positioned, with larger investment projects to be
scheduled for 2013.
The company's semiconductor division will also make positive
earnings contributions this year. "The potential of the various
application areas for the machines suggests a further uptrend in
the coming business years," Singulus added.