METRIS 08Q4 TRADING UPDATE: RECESSION CAUSES SALES Q4 TO DECLINE- H2 EBITDA BREAK EVEN
Dit artikel in het Nederlands
METRIS 08Q4 TRADING UPDATE:
RECESSION CAUSES SALES Q4 TO DECLINE;
H2 EBITDA BREAK EVEN
Leuven, January 16th 2009 - Metris, leading innovator in the metrology industry, today issues its 08Q4 qualitative trading update. The group will announce its H2 and full year 2008 results on March 18th, 2009.
Until September 2008, Metris has been on track for Sales, Gross Profit and EBITDA plan. In Q4 however Metris' sales have been negatively impacted by recession, causing Q4 08 sales to come in short of plan at about half of 07Q4 sales. 08H2 sales show a double digit decline compared to 08H1. Sales for the full year 2008 came in lower than 2007.
As a result of the economic uncertainty and liquidity crisis, various customers' budgets were frozen and investments delayed, across all geographical segments. Recently developed new revenue initiatives have shown success, but could not adequately rescue 08Q4 sales.
Product mix and gross margin evolved positively as a result of the new revenue initiatives, such as e.g. the recently announced source code license agreement with Renishaw. Therefore 08H2 gross margin will come in ahead of plan. However, this high level of gross profit margin is not expected to be sustainable during 2009.
As expected opex remained relatively constant in 08H2 compared to 08H1, not taking into account the negative influence on opex of the US$ strengthening over 08H2 and some non-recurrent costs associated with cost initiatives. 08H2 EBITDA is expected to be approximately break-even.
Although net debt increased over the 08H2 period, the intensive management focus on working capital programs has already contributed positively to cash flow and has already reduced net debt during Q4, notwithstanding the recession.
Metris announces a second round of cost reductions that should a) cut operational expenses with about a fifth (compared to 08FY and including the first round announced in the previous trading update of November 18th, 2008) bringing cash opex back at the same level of 2007, b) freeze new capex spending and c) reduce capitalized development with about a third (compared to 08FY and including the first round announced in the previous trading update). The spin-off of the Italian CMM operations, today announced in a separate press release, also contributes to this cost reduction objective.
Although forecasting is a difficult discipline given the uncertainty associated with the recession, Metris expects 2009 full year sales to be between 10% higher and 10% lower than 2008 full year sales. This is the current outlook under the scenario of a continuing recession in 09H1 and a moderate recovery in 09H2. In case this scenario proves to be too optimistic, further cost reduction programs will immediately be implemented. During 2009 Metris intends to generate positive cash flow and therefore reduce debt.
Contact
Renaat Van Cauter - marketing@metris.com - Tel +32 16 74 01 00 - Mobile +32 486 64 24 33
METRIS 08Q4 TRADING UPDATE:
RECESSION CAUSES SALES Q4 TO DECLINE;
H2 EBITDA BREAK EVEN
Leuven, January 16th 2009 - Metris, leading innovator in the metrology industry, today issues its 08Q4 qualitative trading update. The group will announce its H2 and full year 2008 results on March 18th, 2009.
Until September 2008, Metris has been on track for Sales, Gross Profit and EBITDA plan. In Q4 however Metris' sales have been negatively impacted by recession, causing Q4 08 sales to come in short of plan at about half of 07Q4 sales. 08H2 sales show a double digit decline compared to 08H1. Sales for the full year 2008 came in lower than 2007.
As a result of the economic uncertainty and liquidity crisis, various customers' budgets were frozen and investments delayed, across all geographical segments. Recently developed new revenue initiatives have shown success, but could not adequately rescue 08Q4 sales.
Product mix and gross margin evolved positively as a result of the new revenue initiatives, such as e.g. the recently announced source code license agreement with Renishaw. Therefore 08H2 gross margin will come in ahead of plan. However, this high level of gross profit margin is not expected to be sustainable during 2009.
As expected opex remained relatively constant in 08H2 compared to 08H1, not taking into account the negative influence on opex of the US$ strengthening over 08H2 and some non-recurrent costs associated with cost initiatives. 08H2 EBITDA is expected to be approximately break-even.
Although net debt increased over the 08H2 period, the intensive management focus on working capital programs has already contributed positively to cash flow and has already reduced net debt during Q4, notwithstanding the recession.
Metris announces a second round of cost reductions that should a) cut operational expenses with about a fifth (compared to 08FY and including the first round announced in the previous trading update of November 18th, 2008) bringing cash opex back at the same level of 2007, b) freeze new capex spending and c) reduce capitalized development with about a third (compared to 08FY and including the first round announced in the previous trading update). The spin-off of the Italian CMM operations, today announced in a separate press release, also contributes to this cost reduction objective.
Although forecasting is a difficult discipline given the uncertainty associated with the recession, Metris expects 2009 full year sales to be between 10% higher and 10% lower than 2008 full year sales. This is the current outlook under the scenario of a continuing recession in 09H1 and a moderate recovery in 09H2. In case this scenario proves to be too optimistic, further cost reduction programs will immediately be implemented. During 2009 Metris intends to generate positive cash flow and therefore reduce debt.
Contact
Renaat Van Cauter - marketing@metris.com - Tel +32 16 74 01 00 - Mobile +32 486 64 24 33
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