In the first six months of financial year 2019/2020, Hönle Group sales revenues amounted to TEur 50,853 and were thus 9.2 % below the previous year's level. The operating result dropped by 43.2 % to T€ 5,786.
As in the previous year, a lower order volume for an application from the sensor technology segment led to a decline in sales in the adhesives segment in this financial year as well. However, sales with new customers, mainly from the consumer electronics segment, were able to partially compensate for the effects. The customer base was significantly expanded so that, among others, all major smartphone manufacturers are now among Hönle's customers. In the Glass & Radiation segment, the weakening semiconductor and glass fibre markets led to a temporary decline in sales. As a consequence of the COVID 19 pandemic, demand, in particular from the Asian economic region, came to a temporary standstill here. The production site of Aladin GmbH was relocated from Rott am Inn to Ilmenau. The relocation of the production facilities associated with the move led to a temporary impairment of production activities at the company, which also had a temporary effect on the development of sales and earnings.
Earnings before taxes (EBT) fell from eur 10,073k to eur 5,678k. After income taxes, consolidated earnings amounted to eur 4,393k compared to eur 7,151k in the previous year, which corresponds to earnings per share of eur 0.81 (previous year: eur 1.30). The net return on sales thus fell from 12.8 % to 8.6 %.
Outlook
Dr. Hönle AG withdrew the outlook for financial year 2019/2020 on 27 April 2020. The effects of the COVID 19 pandemic on the Hönle Group's business development cannot be estimated at present. The initial restrictions imposed in many countries and the impairment of production processes lead to a significant deterioration in the overall economic outlook. The ongoing COVID 19 pandemic is therefore expected to influence the Hönle Group's sales and earnings development in the current financial year.
Adhesives Segment
In the adhesives segment, a lower order volume with a major customer for an application in the sensor technology area will lead to a decline in sales. However, sales with new customers mainly in the consumer electronics sector will partially compensate for these effects.
In the course of the planned sales growth, the number of employees in the sales and development departments for industrial adhesives was increased. In the medium to long term, the Management Board expects strong business development in the adhesives segment due to the expansion of existing customer relationships and a large number of ongoing projects.
Equipment & Systems segment
The Hönle Group continued to expand its business relationships with existing customers from the printing industry and extended its product range in the printing segment with a view to tapping sales potential outside of UV drying. Hönle also supplemented the product range with new technologies in the surface disinfection segment. In connection with the COVID 19 pandemic, Hönle expanded its product range with high-performance UVC air and surface disinfection systems.
It is expected that the COVID 19 pandemic will lead to a further postponement of projects and orders. Hönle has therefore initiated or already implemented several cost saving measures. Overall, sales revenues and results in the Equipment & Systems segment in financial year 2019/2020 are expected to be below the previous year's values.
Glass & Radiators Segment
In the Glass & Lamps segment, Aladin GmbH relocated to the premises of UV-Technik Speziallampen GmbH. The new lamp development and production centre in Ilmenau thus created bundles the competencies and enables more efficient work processes. Production capacities were also significantly increased to accommodate the planned growth in the area of ballast water disinfection. Rising sales in the area of ballast water disinfection are expected to contribute to the good business development at UV-Technik Speziallampen GmbH.
It is expected that the quartz glass market will pick up slightly in the second half of 2020. In addition, better purchasing conditions will lead to a significant reduction in the cost of materials at Raesch Quarz (Germany) GmbH.
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