DGAP-Adhoc: InTiCa Systems AG: Sales and earnings below expectations at end of the first nine months - Revised forecast for 2018

Sales and earnings below expectations at end of the first nine months - Revised forecast for 2018

Passau, October 25, 2018 - InTiCa Systems AG (ISIN DE0005874846, ticker IS7), which is listed in the Prime Standard on Frankfurt Stock Exchange, hereby reports that, based on the provisional figures for the first nine months of 2018, the development of both sales and earnings is considerably below the Board of Directors' expectations. The Board of Directors is therefore revising its forecast for fiscal 2018.

Due to a substantial reduction in and postponement of order volumes by a major European customer for hybrid technology, plus delays in serial production of a major new product of significance for the Mexico site, the Automotive Technology segment will not be able to achieve the planned sales growth. Group sales totalled EUR 36.6 million in the first nine months of 2018 (9M 2017: EUR 37.3 million). Sales were EUR 28.5 million in the Automotive Technology segment (9M 2017: EUR 29.1 million) and EUR 8.1 million in the Industrial Electronics segment (9M 2017: EUR 8.2 million). In addition, profitability was adversely affected by the global shortage of relevant raw materials, combined with supply bottlenecks and higher material costs. Further negative factors were Brexit and the associated reduction in volumes called off by customers, and a significant worsening of the availability of staff, leading to higher personnel costs in the Czech Republic.
Given the cumulative impact of these factors in the second half of the year, EBIT was EUR 13 thousand at the end of the first nine months (9M 2017: EUR 1.1 million) and the EBIT margin was therefore 0.04% (9M 2017: 2.8%).

Based on business performance to date and the expectations for the fourth quarter, the Board of Directors is reducing its forecast for 2018 as a whole. Instead of sales of around EUR 53 million and an EBIT margin of 3.0%, the Board of Directors now expects Group sales be between EUR 47 million and EUR 49 million, with negative EBIT of up to minus EUR 1.0 million.

Irrespective of the present negative influences, orders on hand at the end of the third quarter were at a record level of EUR 83 million. A considerable proportion of this already relates to new products for hybrid technology and e-mobility, confirming the Board of Director's long-term strategy for the Group. To improve the earnings situation, the company has also drawn up and started to implement a restructuring plan, comprising extensive measures to optimize costs and raise the efficiency of the corporate organization.

InTiCa Systems will provide further details of its performance in the first nine months of 2018 and information on the restructuring programme in its report on the first nine months, which will be published on November 22, 2018.

InTiCa Systems AG

The Board of Directors

CONTACT Dr. Gregor Wasle | CEO
TEL +49 (0) 851 - 966 92 - 0
FAX +49 (0) 851 - 966 92 - 15
EMAIL investor.relations@intica-systems.de

 

About InTiCa Systems:

InTiCa Systems is a European leader in the development, manufacture and commercialization of inductive components, passive analogue switching technology and mechatronic assemblies. It operates in the Automotive Technology and Industrial Technology segments and has more than 650 employees at its sites in Passau (Germany), Prachatice (Czech Republic) and Silao (Mexico).

The Automotive Technology segment focuses on innovative products that raise the comfort and safety of cars, improve the performance of electric and hybrid vehicles and reduce carbon emissions. InTiCa Systems' Industrial Electronics segment develops and manufactures mechatronic assemblies for the solar industry and other industrial applications.

Forward-looking statements and predictions
This press release contains statements and forecasts referring to the future development of InTiCa Systems AG which are based on current assumptions and estimates by the management that are made using information currently available to them. If the underlying assumptions do not materialize, the actual figures may differ substantially from such estimates. Future developments and results are in fact dependent on a large number of factors; they contain different risks and imponderables and are based on assumptions that may not be accurate. We neither intend nor assume any obligation to update forward-looking statements on an ongoing basis as these are based exclusively on the circumstances prevailing on the date of publication.