Phoenix Mecano: Q3 results confirm positive development

Thursday, 06. November 2003 07:30

Stein am Rhein/Kloten, 6 November 2003. During the first nine months
of the financial year, incoming orders totalled € 248
million, compared with € 253 million the previous year,
corresponding to a 2% decrease. Sales, which totalled € 247
million, were 2% down on the previous year's total of € 252
million. Corrected for differences in foreign-exchange rates this
result indicates a 1% increase in sales. EBIT operating profits
totalled € 21.5 million, 97% up on the previous year's
figure of € 10.9 million.

EBDIT cash flow totalled € 37.7 million, 24% up on the
previous year's value of € 30.3 million. That rise reflects
the Group's greater operational efficiency after its successful
Net income at end Q3 totalled € 12.8 million, 193% up on the
previous year's result of € 4.4 million. Net indebtedness
has been slashed by € 18 million to € 74 million
since the start of the year.

Performance by the Group's divisions

In the Enclosures division the positive trend of previous months was
successfully maintained. After another successful quarter, sales by
our most profitable division totaled € 90.4 million, 4% up
on the previous year, despite the difficult market situation. In our
experience, a recovery of the industrial electronics and mechanical
engineering markets would have an additional positive impact on both
our sales and income, albeit with a three- to six-month delay.

In our Electrotechnical Components division sales rose by 9% to
€ 31.4 million, prompted by successful project work and a
slight easing of the market. However, it remains unclear whether this
is any indication of an imminent sustainable recovery.

The Mechanical Components division suffered an 8% downturn during the
first nine months of the year, with sales totalling € 90.7
million. This development was prompted by companies' reluctance to
invest in special machinery and extremely cautious consumer behaviour
in the furniture sector, especially on the important German market.
The Phoenix Mecano Group expects a satisfactory Q4 performance from
this division thanks to a higher volume of orders and new projects.
Despite a drop in sales compared to the previous year, the division's
operating margin actually rose.

In the Electronics Contract Manufacturing division the restructuring
of Italian subsidiary OMP (telecom infrastructure) was brought to a
successful conclusion. The high volume of orders received in the
third quarter and greater dynamism shown by markets for mobile phone
infrastructure and networks suggest clearly rosier prospects for this
division in 2004. During the first nine months of 2003, sales were
down 10% at € 33.3 million.


The Phoenix Mecano Group expects stable business results in the
fourth quarter of 2003. Moreover, the Board of Directors and
management are expecting a positive development for 2004, though the
extent of this positive trend will be determined by the timing and
intensity of any recovery on the capital goods markets. Phoenix
Mecano's improved products, processes and cost structures mean that
it is well placed to respond to any such development.

Results for January - September 2003 in figures (in millions of EUR)

1-9/2002 1-9/2003 in %

Incoming orders 253.4 247.7 -2

Sales 252.1 246.7 -2

per division:
Enclosures 87.2 90.4 4
Electrotechnical Components 28.7 31.4 9
Mechanical Components 98.3 90.7 -8
ECM 36.9 33.3 -10
Other 1.0 1.0 0

Operating cash flow
(EBDIT) 30.3 37.7 24
Margin 12.0% 15.3%

Earnings before interest and taxes
(EBIT) 10.9 21.5 97
Margin 4.3% 8.7%

Net income 4.4 12.8 193
Margin 1.7% 5.2%

The media release can be downloaded from the following link:
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If you have any further queries, please contact:

Benedikt Goldkamp
Phoenix Mecano Management AG
Lindenstrasse 23
CH-8302 Kloten
Tel. +41 43 255 4 255
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