Archive 2005 () Unaxis sales increase 15 percent in 2004. Market-related downturn in fourth quarter orders received. Future core businesses in thin film and vacuum technology show stable development. Heavy corporate operating loss accruing from Display Technology and goodwill impairment at Assembly & Packaging (ESEC).
Pfäffikon SZ, February 1, 2005 - Unaxis increased its sales by 15 percent to CHF 1,850 million (2003: CHF 1,610 million). With pronounced market weakening in certain segments, the amount of orders received in 2004 was CHF 1,778 million, similar to the previous year’s figure (2003: CHF 1,788 million).
Stable business development by future core businesses in thin film and vacuum technology
Sales by the future core businesses – Coating Services (Balzers), Vacuum Solutions (Leybold Vacuum), Data Storage Solutions, and Components and Special Systems – increased to CHF 1,282 million in 2004 (2003: CHF 1,181 million). Orders received were CHF 1,211 million, on a par with the previous year’s figure (CHF 1,216 million). In a demanding market climate, operating result for thin film and vacuum technology could be maintained at CHF 120 million, comparable to the year before. Further development of the future core businesses in thin film and vacuum technology will involve stronger exploitation of organic growth potential, geographical expansion, and thrust into new application areas.
Coating Services (Balzers) achieved total sales of CHF 367 million in 2004. This corresponds to a 16 percent increase on the previous year (2003: CHF 315 million).
Vacuum Solutions (Leybold Vacuum) improved its sales by 10 percent on the previous year, to CHF 379 million (2003: CHF 345 million). Orders received amounted to CHF 365 million, as in the previous year (2003: CHF 365 million).
Data Storage Solutions recorded a market-related 29 percent decline in sales to CHF 208 million, following a very good year in 2003 (2003: CHF 293 million). There was a 42 percent reduction in the amount of orders received, to CHF 170 million (2003: CHF 293 million).
Sales by the Components and Special Systems segment clearly improved in the 2004 financial year, rising by 44 percent to CHF 328 million (2003: CHF 228 million). The amount of orders received by the segment rose by 27 percent to CHF 309 million (2003: CHF 243 million).
Future Semiconductor Equipment activities show increased sales and almost neutral operating result before restructuring expenses and goodwill impairment at Assembly & Packaging (ESEC)
Sales from the future Semiconductor Equipment1 activities consisting of Wafer Processing and Assembly & Packaging (ESEC) saw an on-year increase of 42 percent, to CHF 462 million (2003: CHF 326 million), while the amount of orders received rose by 15 percent to CHF 437 million (2003: CHF 379 million). Despite market weakness in the second half of 2004, an almost neutral operating result of around CHF -5 million was achieved prior to restructuring expenses approximating CHF 20 million and goodwill impairment of about CHF 150 million. The Semiconductor Equipment segment will be developed into an independent provider of Wafer Processing and Assembly & Packaging equipment, with the aim of ensuring sustained competitiveness and profitable growth.
Reappraisal of current projects by the new management team discovers significantly higher losses at Display Technology
The new corporate management team fundamentally reappraised and evaluated Display Technology projects at the end of the year, giving special consideration to project-related risks. Display Technology thus posted a strongly negative operating result on the order of CHF –300 million, a figure that includes restructuring costs and value adjustments to fixed assets of around CHF 60 million.
Display Technology and goodwill impairment at Assembly & Packaging (ESEC) lead to heavy net operating loss
Unaxis expects a negative consolidated operating result for 2004 on the order of CHF -140 million ahead of restructuring costs and impairments. Accounting for impairments and provisions for restructuring costs of around CHF –230 million leaves a negative operating result of around CHF –370 million (2003: CHF 16 million).
Unaxis is convinced that financial adjustments and the restructuring measures introduced have prepared the ground for successful implementation of the corporate strategy decided in late 2004.
Attachment: Key figures tables
This media release is based on information currently available to management. The forward-looking statements contained herein could be substantially impacted by risks and influences that are not foreseeable at present, so that actual results may vary materially from those anticipated, expected, or projected.