Meyer Burger awarded major strategic contract of about CHF 40 million for industrial diamond wire-based cutting systems and announces estimate for results fiscal year 2013
Meyer Burger has successfully concluded a contract with a new customer for the delivery of industrial diamond wire cutting systems and innovative diamond wire material for slicing and cutting applications in specialised non-PV technologies. The contractual value is approximately CHF 40 million for the cutting systems. In addition, the Company signed a framework agreement for the delivery of diamond wire material, with a potential value of up to CHF 30 million during fiscal year 2014. Delivery of the systems and the first delivery of diamond wire are scheduled to begin early in 2014.
Meyer Burger Technology Ltd (SIX Swiss Exchange: MBTN) announced today that it has successfully concluded an important strategic contract with a new customer. The contract includes delivery of high precision industrial slicing systems for about CHF 40 million. Meyer Burger signed an additional framework contract for diamond wire material from Group Member Diamond Materials Technology that has a potential value of about CHF 30 million in consumables during fiscal year 2014 (consumables to be called on an order-to-order basis). Both, the systems (equipment) and the consumables (diamond wire) are being used for cutting and slicing applications in specialised non-PV technologies.
Delivery of the system solutions is scheduled to begin in January 2014 and will be completed by the end of the first half of the year. The scheduled single-orders and corresponding deliveries from the framework agreement (diamond wire consumables) cover the entire fiscal year 2014.
Expectations regarding results for fiscal year 2013
Including the above mentioned order, Meyer Burger Group expects a total of incoming orders for fiscal year 2013 in the range of CHF 240 to 260 million. The level of incoming orders is therefore above the CHF 223.4 million reached in the previous year. The improvement mainly took place in the second half of 2013, during which incoming orders doubled compared to the first half of this year (H1 2013: CHF 82.5 million of incoming orders). Heightened activities in photovoltaic projects are also providing signs for increased readiness by customers to invest and for a broadening of the photovoltaic market.
Regarding the results for 2013, Meyer Burger Group expects net sales for fiscal year 2013 of about CHF 200 million (previous year: CHF 645.2 million). The majority of the larger orders received during the second half of 2013 will become relevant in terms of net sales during 2014 only. Operating expenses (personnel and other operating expenses) have been reduced substantially compared to the previous year, and Meyer Burger expects the operating expenses to decline by approximately CHF 80 to 90 million compared to fiscal year 2012. Based on the expectations for net sales and expenses, Meyer Burger estimates the result at EBITDA level to be in a range of about CHF -115 to -135 million (previous year according to Swiss GAAP FER: CHF -32.9 million1) and the net result to be in a range of CHF -170 to -190 million (previous year according to Swiss GAAP FER: CHF -110.1 million1).
