Tecan records stable sales and increased operating profit in the first half of
MAENNEDORF, SWITZERLAND -- (Marketwired) -- 08/14/13 -- Tecan Group
AG / Tecan records stable sales and increased operating profit in the
first half of 2013.
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* Sales of CHF 181.8 million (H1 2012: CHF 182.2 million)
* Stable sales despite tough economic environment
* Sales 0.2% (0.5% in local currencies) below prior-year figure
* Order entry of CHF 189.2 million (H1 2012: CHF 179.6 million)
* Growth of 5.3% (5.1% in local currencies)
* Operating profit (EBIT) of CHF 23.1 million (H1 2012: CHF 22.4
* Operating profit margin increased to 12.7% of sales (H1 2012:
* Net profit of CHF 16.5 million (H1 2012: CHF 17.7 million)
* Net profit margin of 9.1% of sales (H1 2012: 9.7%)
* Earnings per share of CHF 1.51 (H1 2012: CHF 1.64)
* Cash flow from operating activities of CHF 5.5 million (H1 2012:
CHF - 8.0
* Cash flow from operating activities of CHF 28.4 million,
excluding prefinancing of an OEM development project (H1 2012:
CHF 15.0 million)
* Outlook for full-year 2013 confirmed
* Significant progress in major development programs
* OEM development program Dako Omnis successfully completed;
first instruments for market launch delivered
The Tecan Group (SIX: TECN) closed the first half of 2013 with stable
sales and an increased operating profit. Despite the tough economic
environment, sales reached approximately the
prior-year value, down
0.2%, or 0.5% in local currencies (H1 2012: CHF 182.2 million). After
an anticipated difficult first quarter, double-digit
sales growth was
achieved in the second quarter. Order entry increased by 5.3%
189.2 million (H1 2012: CHF 179.6 million) in the first six months of
the year, corresponding to growth of 5.1% in local currencies. As a
entry exceeded sales in the first half of 2013, leading
to an increased order
backlog at the end of the reporting period.
Operating profit (EBIT) increased by 3.3% to CHF 23.1 million in the
of 2013 (H1 2012: CHF 22.4 million) despite stable sales.
At 12.7% of sales, the operating profit margin also exceeded the
prior-year figure (H1 2012: 12.3%).
Net profit amounted to CHF 16.5
million (H1 2012: CHF 17.7 million) in the first
six months of the
year. The decline is the result of a lower financial
attributable to currency hedging measures. The net profit
margin reached 9.1% of sales (H1 2012: 9.7%), while earnings per
share were CHF 1.51 (H1 2012: CHF 1.64). Cash flow from operating
activities increased to CHF 5.5 million (H1 2012: CHF -8.0 million).
Excluding an OEM development project that Tecan is prefinancing, cash
flow from operating activities amounted to CHF 28.4 million
CHF 15.0 million).
Tecan CEO David Martyr commented: "Despite the continuing tough
economic environment in the first half of 2013, Tecan's sales remained
the same level as in 2012. I am pleased that we have
managed to increase our
operating profit as well as the operating
profit margin. As we anticipated, the
first quarter was very
difficult, with uncertainty around the impact of austerity measures
imposed in many countries. In the second quarter, however, we enjoyed
a noticeably positive trend with double-digit sales growth and
We have achieved important progress in implementing our priorities
for 2013. The development of the key product Dako Omnis was
successfully completed and we have
started deliveries for commercial
distribution. As regards individual markets
and products, we enjoyed
significant growth in China and in the component business. We confirm
the forecast for 2013 that we issued in the spring, but
note that the
impact of market developments on our Life Sciences Business continues
to be hard to predict," Martyr continued.
Information by business segments
Life Sciences Business (end-customer business)
As anticipated, the Life Sciences Business segment was affected in
half of the year by the austerity measures and budget cuts
in Europe and North
America, which unsettled the markets. Sales in
this business segment decreased
by 3.2% to CHF 97.6 million (H1 2012:
CHF 100.8 million), while in local currencies, sales were 3.5% below
the prior-year period. The decline in sales in the first six months
occurred entirely in the first quarter, while the second
characterized by a markedly positive growth trend sequentially. Also,
sales in the second quarter increased slightly compared with the
prior-year period. At the product level, sales of liquid handling
platforms in the first six months were below the 2012 level. By
contrast, Tecan achieved sales
growth in detection devices and
services and consumables. Overall, order entry
in the Life Sciences
Business was also below the prior-year figure, but showed
growth in the second quarter. The segment's operating profit in the
first half of 2013 was CHF 1.1 million (H1 2012: CHF 4.8 million).
The decline is principally the result of lower sales.
margin reached 1.0% of sales (H1 2012: 4.4%). The Life Sciences
Business is, to a certain degree, subject to seasonality and
the majority of the segment operating profit in
the second half of the year.
Partnering Business (OEM business)
The Partnering Business segment generated sales of CHF 84.2 million
during the reporting period (H1 2012: CHF 81.4 million), which
corresponds to an increase
of 3.5% in Swiss francs and 3.2% in
local currencies. Components, services and consumables again posted
strong growth in the first half of 2013. Sales of instruments
declined, as one partner phased out a product line and, following a
company acquisition, another partner shifted the focus of its
Order entry in the Partnering Business
increased significantly in the first half
of the year, growing at
a double-digit percentage rate. This led to a significantly
higher order backlog at the end of the reporting period. The
Partnering Business segment increased its operating profit margin to
of sales in the first six months of 2013 (H1 2012: 25.6%). At
CHF 25.0 million,
operating profit was therefore 16.9% above that
of the prior-year period (H1 2012: CHF 21.4 million).
In Europe, sales in Swiss francs were 2.8% below the prior-year
period and decreased by 3.7% in local currencies. This decrease is
primarily the result of lower sales in the Life Sciences Business due
to the continuing tough economic
situation in some European
In North America, sales rose by 1.6% in Swiss francs and 0.9% in
local currencies. Growth in this region was driven by a considerable
increase in sales
in the component business, which is part of the
Partnering Business. Sales in
the Life Sciences Business in North
America were also below the prior-year figure, as government budget
cuts unsettled the market.
Sales in Asia grew by 2.5% in Swiss francs and by 6.4% in local
business segments were able to contribute to growth.
Sales in China again increased at a double-digit percentage rate.
Recurring sales of services and consumables
Recurring sales of services and consumables increased by 7.8% in the
of 2013, or by 7.5% in local currency terms, and accounted
for 35.1% of total
sales (H1 2012: 32.5%). As part of this figure,
sales of consumables again increased at a double-digit percentage
rate, growing by 17.0% in Swiss francs
and by 15.8% in local
currencies to a share of 11.2% of total sales (H1 2012: 9.6%).
Research and development
In the first half of 2013, research and development spending was at
sales (H1 2012: 12.3%) or CHF 21.3 million (H1 2012: CHF 22.5
million). All told, research and development activities amounted to
CHF 54.0 million gross (H1 2012: CHF 55.3 million). This figure also
includes the development costs capitalized in the balance sheet (CHF
4.2 million gross) and development costs
for OEM partners (CHF 29.8
Tecan announced at the beginning of June that it had successfully
major Dako Omnis development program. The new platform
for automated advanced
staining of tissue samples was co-developed
with Dako and is manufactured by
Tecan. Dako is an Agilent
Technologies company (NYSE: A). The Dako Omnis sets
new standards for
automated tissue-based cancer diagnostics and Tecan has delivered the
first instruments for the market launch.
For the second major OEM development program, P14, Tecan continues to
expect the start of commercial supply of instruments to its partner
around the end of 2013.
As communicated before, the launch of Tecan's
next generation of liquid handling
platforms is anticipated in 2014.
Strong balance sheet - high equity ratio
Tecan's equity ratio increased further during the reporting period
71.4% as of June 30, 2013 (December 31, 2012: 69.4%). Net
liquidity (cash and
cash equivalents less bank liabilities and loans)
amounted to CHF 130.3 million
(December 31, 2012: CHF 141.3 million).
The Company's share capital remained
unchanged at CHF 1,144,458 at
the reporting date (June 30, 2013), consisting of 11,444,576
registered shares with a nominal value of CHF 0.10 each. At the Tecan
Group Annual General Meeting on April 17, 2013, shareholders
approved a higher dividend versus the previous year of CHF 1.50
share. The dividends of CHF 16.5 million in total (H1
2012: CHF 13.5 million)
were partly paid out from the available
capital contribution reserve. The payout
took place on April 24,
Outlook for full-year 2013 confirmed
Tecan expects accelerated sales growth in the second half of 2013 for
both business segments.
In an environment that remains hard to predict, Tecan continues to
expect moderate growth in local currencies in the Life Sciences
Business segment in
2013, but the possibility of a decline in sales
in this segment cannot be excluded.
Based on customer forecasts for existing products, in light of the
of deliveries of Dako Omnis and the anticipated
continuation of dynamic growth
in the component business, Tecan
continues to expect good sales growth for the
segment in fiscal year 2013.
Overall, Tecan continues to expect sales growth for full-year 2013 to
be in the
mid-single-digit percentage range in local currencies.
Tecan continues to anticipate that operating profit margin will grow
by around 50 basis points in
2013 compared with 2012.
Financial Report and Webcast
The full 2013 Interim Report can be accessed on the company website
www.tecan.com under Investor Relations. An iPad App for the Tecan
Financial Reports is available from the App Store.
A conference call discussing the results in the first half of 2013
place today at 10 a.m. (CEST). The presentation will also be
relayed by live
audio webcast, which interested parties can access at
www.tecan.com. A link to
the webcast will be provided immediately
prior to the event.
The dial-in numbers for the conference call are as follows:
For participants from Europe: +41 58 310 5000 or +44 203 059 5862
Participants from the US: +1 (1) 866 291 4166
Participants should if possible dial in 15 minutes before the start
of the event.
Key upcoming dates
* A Capital Market Day for analysts and institutional investors
will take place on September 11, 2013, in Maennedorf/Zurich.
* The 2013 Annual Report will be published on March 11, 2014.
* The Annual General Meeting of Tecan's shareholders will take
place in Zurich
on April 16, 2014.
Tecan (www.tecan.com) is a leading global provider of laboratory
instruments and solutions in biopharmaceuticals, forensics and
clinical diagnostics. The company
specializes in the development,
production and distribution of automated
workflow solutions for
laboratories in the life sciences sector. Its clients
pharmaceutical and biotechnology companies, university
departments, and forensic and diagnostic laboratories. As
an original equipment
manufacturer (OEM), Tecan is also a leader in
developing and manufacturing OEM instruments and components that
are then distributed by partner companies.
Founded in Switzerland
in 1980, the company has manufacturing, research and development
sites in both Europe and North America and maintains a sales and
service network in 52 countries. In 2012, Tecan generated
sales of CHF 391 million (USD 416 million; EUR 323 million).
Registered shares of Tecan
Group are traded on the SIX Swiss
Exchange (TECN; ISIN CH0012100191).
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Source: Tecan Group AG via Thomson Reuters ONE
For further information:
Dr. Rudolf Eugster
Chief Financial Officer
Head of Corporate Communications & Investor Relations
Tel. +41 (0) 44 922 84 30
Fax +41 (0) 44 922 88 89
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