Viscom AG achieves annual forecast for 2020 in difficult market environment
|
DGAP-News: Viscom AG
/ Key word(s): Annual Report/Annual Results
Viscom AG achieves annual forecast for 2020 in difficult market environment Incoming orders: € 64,561 thousand (previous year: € 79,525 thousand) Hanover, 23 March 2021 - Viscom AG (ISIN DE0007846867), the European market leader for automated optical inspection systems in the electronics industry, had its economic activities severely restricted by the COVID-19 pandemic in the 2020 financial year. The impact of the pandemic on operating activities at Viscom AG, especially in the automotive sector, caused the management to adjust Viscom AG's forecast for the year in early November 2020. Despite achieving this lower stated revenue and profit target for 2020, the company crossed the finish line with a substantial loss. Cumulative sales amounted to € 61.6 million (previous year: € 88.6 million) and is therefore 30.5 % below the figure of the previous year. Operating profit fell to € -6.0 million (previous year: € 4.0 million). The main reasons for the change as against the previous year were the lack of total operating revenue and a smaller decline in staff costs. In contrast, other operating income increased in the period under review. Due to the negative result at the AG and the Group, the company will not pay a dividend for the 2020 financial year to its shareholders. Viscom customers and suppliers' production chains gained increasing momentum during the second half of 2020 and customer enquiries also started to increase again. Business at Viscom AG recovered following the sudden collapse in the first half of 2020 and rallied strongly at the end of the year. Incoming orders in the third quarter of 2020 amounted to € 16,788 thousand and were already up by around 79 % on the previous quarter (€ 9,376 thousand). The fourth quarter of 2020 saw incoming orders exceed the previous quarter by some 34 % to reach € 22,469 thousand. Cumulatively, orders totalling € 64,561 thousand (previous year: € 79,525 thousand) were received in the 2020 financial year. The order backlog was € 18,938 thousand as at the end of the year, an increase of around 18.8 % as against the previous year (€ 15,939 thousand). Europe was by far the strongest regional market, accounting for around 67 % of the Viscom Group's revenue. The propensity to invest among Viscom's customers on its home market of Germany weakened considerably in the past financial year. However, Germany continued to be an important sales market for Viscom in 2020. Revenue in Germany amounted to € 22,167 thousand, down around 24 % on the prior-year figure of € 29,233 thousand. In the rest of Europe, revenue fell by around 29 % year-on-year to € 19,320 thousand (previous year: € 27,335 thousand). In Germany and the rest of Europe, segment revenue was significantly below the previous year's level at € 41,487 thousand (previous year: € 56,568 thousand; -26.7 % year-on-year). Segment earnings amounted to € -7,102 thousand (previous year: € 3,075 thousand). In the Americas region, uncertainties over the COVID-19 pandemic continued to dominate the market in nearly every sector. Compared with the first and second quarters of 2020, there was a market revival in the third quarter of 2020. Mexico, the US and Canada contributed to a strong final quarter in the 2020 financial year in all sectors, but especially electromobility. The service and support business likewise grew again in all regions of the Americas. However, these positive market signals could not compensate for the weak previous quarters. Revenue in the Americas region declined by around 31 % year-on-year to € 9,131 thousand in the 2020 financial year (previous year: € 13,311 thousand). Segment earnings were improved significantly thanks to the cost-reduction measures introduced in other operating expenses and staff costs. At € 778 thousand, they were significantly higher than the previous year's figure (previous year: € 350 thousand). There was a similar picture in the Asia region. With Chinese New Year falling early in January, and being followed almost immediately by the COVID-19 lockdown in China, demand for products from Viscom's customers - cars especially - crashed in the first quarter of 2020. The business - especially in the People's Republic of China - picked up again slightly in the second quarter of 2020 and grew stronger in the subsequent quarters. In the fourth quarter of 2020, more orders were acquired and more revenue was generated in the Asian region than in the three previous quarters. The initiated cost-reduction programmes paid off and led to a positive result for this region. The travel restrictions in response to coronavirus are making it difficult to visit customers for sales or service purposes. Revenue in the Asia region declined significantly by around 41 %, from € 18,677 thousand in 2019 to € 10,944 thousand in 2020. At € 606 thousand, segment earnings were level with the previous year (€ 573 thousand). Viscom's inspection systems are used all over the world in the automotive supplier segment of the electronics industry, one of the largest branches of industry. The automotive industry has been hit hard by the COVID-19 pandemic, having already been under assault for some years by the ongoing diesel crisis, problems with the introduction of the new WLTP emissions test standard and weakening export markets. The fundamental changes that have already been under way for some time - the shift towards the digitalisation of production, electromobility, autonomous and connected driving as well as new mobility options - present the industry with additional major challenges in the context of the COVID-19 pandemic. However, they also present opportunities: Companies are having to review efficiency in production and supply chains or press ahead with the restructuring required in response to the megatrends. In many cases, technological transformation and associated technical changes in customer production lines call for new inspection systems in order to meet the expanded requirements. Viscom has worked hard throughout 2020 to reorganize internally at the headquarters in Hanover and adapt processes within the company to meet the new market requirements. Yet another key factor that enables Viscom to leverage further market potential and take opportunities is the fact that its inspection systems help to improve and increase quality and thus efficiency in customers' production. In 2020, there was a focus on the development of several new systems for 2D and 3D inline X-ray inspection. Some of the system types were already delivered during the past financial year while others are due to be launched on the market in 2021. In addition, software will become an increasingly important development priority during the financial year 2021. Exciting themes here include the vVision software platform, artificial intelligence and approaches for cloud-based working. The forecast for the current year is subject to a great deal of uncertainty. The development of incoming orders and revenue in 2021 will largely depend on the overall economic situation, particularly in the automotive industry, and on further developments relating to the COVID-19 pandemic. Viscom anticipates target revenue and incoming orders of between € 70 million and € 80 million in 2021. The EBIT-Margin for the 2021 financial year is likely to be between 3 % and 9 %, with EBIT of between € 2.1 million and € 7.2 million. To achieve the forecast for the year, the management will continue to implement extensive measures to reduce costs in line with the situation and to safeguard the key technical developments as well as readiness to win orders. Actions in this regard will focus on protecting the health and welfare of Viscom employees, meeting delivery obligations, and supporting customers and hence the well-being of the company. Viscom AG's 2020 Annual Report is available now under Company/Investor Relations at www.viscom.com. Any forecasts, expectations or statements concerning the future included in this release may be subject to risk or uncertainty. We therefore cannot guarantee that the expectations will prove correct. Actual results and developments may differ significantly from the expectations and assumptions expressed. The factors that could cause such deviations include changes in the general economic and competitive situation, exchange rate and interest rate fluctuations and changes in national and international law. The company assumes no obligation to update the forward-looking statements in this release.
SEGMENT INFORMATION
Contact: Viscom AG Investor Relations Anna Borkowski Carl-Buderus-Str. 9-15 30455 Hannover Tel.: +49-511-94996-861 Fax: +49-511-94996-555 investor.relations@viscom.de
23.03.2021 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. |
| Language: | English |
| Company: | Viscom AG |
| Carl-Buderus-Strasse 9-15 | |
| 30455 Hannover | |
| Germany | |
| Phone: | +49 (0) 511 94 996 861 |
| Fax: | +49 (0) 511 94 996 555 |
| E-mail: | investor.relations@viscom.de |
| Internet: | www.viscom.de |
| ISIN: | DE0007846867 |
| WKN: | 784686 |
| Listed: | Regulated Market in Frankfurt (Prime Standard), Hanover; Regulated Unofficial Market in Berlin, Dusseldorf, Munich, Stuttgart, Tradegate Exchange |
| EQS News ID: | 1177208 |
| End of News | DGAP News Service |