DGAP-News: Viscom AG / Key word(s): Annual Results
Viscom AG achieves further growth in 2018, outlook positive for 2019
Incoming orders: EUR 98,750 thousand (previous year: EUR 90,250 thousand, up +9.4 %)
Hanover, 19 March 2019 - Viscom AG (ISIN DE0007846867), the European market leader for automated optical inspection systems in the electronics industry, built on the successes of previous years and continued its growth trajectory in the 2018 financial year.
Viscom AG's consolidated revenue of EUR 93,557 thousand is in line with the forecast for the past financial year (EUR 93 to EUR 98 million) and 5.7 % higher than the previous year's revenue (EUR 88,542 thousand). With revenue of around EUR 94 million, Viscom AG grew for the fifth year in a row and positioned its products and the Viscom brand even more strongly on the market.
Although the growth in revenue was in line with planning, EBIT fell slightly short of the level forecast by Viscom AG (EUR 12.1 to EUR 14.7 million) at EUR 10,944 thousand (previous year: EUR 13,829 thousand). Revenue was at the lower end of the forecast range for 2018 due to customers requesting that delivery dates be postponed to the next year. EBIT was down as a result of both this and higher staff costs and costs of materials. The corresponding EBIT-Margin was 11.7 % (previous year: 15.6 %) and therefore still well above the average in German mechanical engineering.
Europe was by far the strongest regional market, accounting for around 60 % of the Viscom Group's revenue. A slight decline in spare parts business was easily compensated by strong systems business. The propensity to invest among Viscom's customers in its home market of Germany can be described as consistently high. Revenue in Germany amounted to EUR 27,689 thousand, up around 14 % on the prior-year figure of EUR 24,354 thousand. In the rest of Europe, revenue rose by around 9 % year-on-year to EUR 28,800 thousand (previous year: EUR 26,430 thousand). These developments in Germany and the rest of Europe were reflected in a significant increase in segment revenue, from EUR 50,784 thousand in 2017 to EUR 56,489 thousand in 2018. Owing to the strong rise in expenses, the segment profit fell by around 25 % to EUR 8,081 thousand (previous year: EUR 10,748 thousand).
Investment propensity in Mexico was consistently defined by customer restraint in the first three quarters of the 2018 financial year. This was caused by uncertainty concerning the future of free trade agreements, in particular the North American Free Trade Agreement (NAFTA), and increased price pressure among the competition. Investment propensity rose in Mexico and the US in the fourth quarter, for systems as well as service and spare parts business. However, this stimulus was not enough for a return to the strong level of the previous year in the final quarter. As a result, revenue in the Americas region was down around 21 % year-on-year at EUR 10,771 thousand (EUR 13,557 thousand) and, at EUR 689 thousand, the segment profit was around 50 % lower than the figure for the previous year (EUR 1,389 thousand).
Viscom significantly expanded its business activities in the Asia region again in 2018. In particular, business in the area of combined optical and X-ray inspection of assemblies continued to grow. Alongside China - the sub-region with the highest revenue - India also enjoyed a very positive performance. Growth in service and spare parts business was especially high in 2018, making a strong contribution to the region's performance. The investments in the ongoing development and expansion of service and support capacity initiated at the end of 2017 paid off, as major customers have since turned their locations in Asia into key, potentially autonomous hubs. Revenue in the Asia region rose by around 9 %, from EUR 24,201 thousand in 2017 to EUR 26,297 thousand in 2018. At EUR 2,385 thousand, the segment profit was around 13 % higher than in the previous year (EUR 2,105 thousand).
Our aim is for our shareholders to participate in Viscom AG's positive business development once again. The Supervisory Board and Executive Board will propose a dividend of EUR 0.45 per dividend-bearing share at the Annual General Meeting on 28 May 2019. This corresponds to a dividend yield of 3.3 % based on the closing price for 2018.
Viscom AG's performance in 2019 will largely depend on the overall economic situation, particularly in the automotive industry.
Management is forecasting revenue of between EUR 94 and EUR 100 million with an EBIT-Margin of between 10 % and 13 % for the 2019 financial year. Viscom AG is optimistic about achieving this target thanks to its order backlog of around EUR 25 million as at the end of the year and the new technological opportunities for the future.
The 2018 Annual Report is available now under Investor Relations at www.viscom.com/europe.
To the extent that this release contains forecasts, expectations or statements concerning the future, these statements may be subject to risk and 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.
* Dividend proposal of EUR 0.45 per dividend-bearing share for the financial year 2018
* Including consolidation differences
19.03.2019 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
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