MANNEDORF, SWITZERLAND--(Marketwire - August 12, 2010) - Tecan Group AG / Substantial sales
growth for Tecan in first half of 2010 processed and transmitted by Hugin
AS. The issuer is solely responsible for the content of this announcement.
Half year results from continuing operations
· Sales growth of 9.1% to CHF 178.0 million (H1 2009: CHF 163.2
12.2% growth in local currencies
· Operating profit margin at 13.0% (H1 2009: 12.8%); operating
(EBIT) of CHF 23.1 million (H1 2009: CHF 20.8 million)
· Net profit margin of 8.8% (H1 2009: 10.5%); profit of CHF
(H1 2009: CHF 17.1 million)
· Earnings per share of CHF 1.50 (H1 2009: CHF 1.64)
· Strong cash flow from operating activities of CHF 20.8
2009: CHF 17.3 million); equivalent to 11.7% of sales
· Order entry increased to CHF 193.4 million (H1 2009: CHF
million); up 10.7% in local currencies
Half year results including the discontinued Sample Management business
· Sales growth of 2.9% to CHF 187.9 million (H1 2009: CHF 182.6
million); 5.7% growth in local currencies
· Operating profit margin at 11.0% (H1 2009: 11.5%); operating
(EBIT) of CHF 20.6 million (H1 2009: CHF 21.1 million)
· Impairment charges of CHF 27 million
New organization with increased focus on growth strategy; associated
the Group Executive Committee
· Organization focused on the Life Sciences end customer and
OEM customer groups from January 1, 2011
· Financial reporting from 2011 Interim Report onwards divided
new business segments: Life Sciences Business and Partnering Business
Männedorf, Switzerland, August 12, 2010 - The Tecan Group (SIX Swiss
TECN) closed the first half of 2010 with substantial sales growth and a
operating result. Shortly after the end of the first half year, Tecan
share and asset purchase agreement to sell the Sample Management
part of its strategic portfolio alignment. The company also announced today
it is realigning its organization and changing its management and
structure to enable it to more effectively implement its strategy for
profitable growth. The new management structure will be accompanied by
to the Group Executive Committee.
Thomas Bachmann, CEO of Tecan, commented: "We are delighted to have
such significant growth in the first half of 2010. This shows that our
execution for long-term profitable growth is on track. In particular our
OEM business has performed very successfully. The realignment of
organizational and management structure into the Life Sciences
Partnering Business segments will provide a strong basis to drive
businesses forward more strongly. Following the divestiture of the
Management activities, Tecan will increasingly focus its financial and
resources on these two businesses."
Half year results from continuing operations
Sales increased by 9.1% to CHF 178.0 million (H1 2009: CHF 163.2 million)
first half of the year and were 12.2% above those of the prior-year period
local currencies. The operating profit margin rose to 13.0% (H1 2009:
the first six months of 2010, Tecan achieved an operating profit (EBIT) of
23.1 million (H1 2009: CHF 20.8 million). Net profit came in at CHF 15.6
and was thus below the prior-year level (H1 2009: CHF 17.1 million). This
due to a weaker financial result caused by foreign exchange losses. The net
profit margin was 8.8% of sales (H1 2009: 10.5%). Earnings per share were
1.50 (H1 2009: CHF 1.64). Cash flow from operating activities increased to
20.8 million (H1 2009: CHF 17.3 million), which corresponds to 11.7% of
Tecan increased order entry by 7.4% to CHF 193.4 million, which corresponds
growth of 10.7% in local currency terms.
Half year results including the discontinued Sample Management business
As announced on July 15, 2010, the Tecan Group and NEXUS Biosystems, Inc.,
in Poway (California, USA), have signed an agreement concerning the sale of
AG, a wholly-owned subsidiary of Tecan, as well as other related assets.
this agreement, Nexus will acquire all activities of Tecan's Sample
business segment. The Sample Management business segment is therefore
as a "discontinued operation."
Sales including the Sample Management business segment increased by 2.9%
187.9 million (H1 2009: CHF 182.6 million) in the first half of the
were 5.7% above the previous year's level in local currencies. Operating
(EBIT) reached CHF 20.6 million (H1 2009: CHF 21.1 million), while the
profit margin was 11.0% of sales (H1 2009: 11.5%).
Regional development and additional information on continuing operations
In Europe, sales in Swiss francs increased by 25.1%, being negatively
by the exchange rate development of the euro versus the Swiss franc.
sales were 28.2% above the prior-year level in local currency terms. The
increase in sales is mainly the result of a very strong OEM business with
diagnostic companies. End-customer business, on the other hand, was weaker
its performance remained mixed across the various European countries.
In North America, sales decreased by 3.7% in Swiss francs. This figure was
negatively impacted by the exchange rate development of the US dollar
Swiss franc. Sales in North America remained at the prior-year level in
currency terms. The OEM components business grew considerably, while North
American end-customer business was slightly below the prior-year level.
In Asia, sales were 1.1% below the prior-year level in Swiss
unchanged in local currency terms. Sales in Japan declined, which was
the result of a basis effect caused by a major contract in the previous
Sales in China again recorded double-digit growth.
The strategically important global OEM business grew by 52.4%
reporting period. This positive development is primarily the
extraordinary high demand for OEM instruments from major existing
the first half of the year, but should balance itself out again to a
extent over the year as a whole. OEM business increased to a level where
constitutes 44.2% of total sales (H1 2009: 31.7%).
The recurring revenues of the services and consumables business
accounted for 32.4% of total sales (H1 2009: 33.6%), including
consumables sales of 7.7% of total sales (H1 2009: 7.1%).
Information by business segment
Components & Detection
Sales in the Components & Detection business segment increased 8.4% to CHF
million in the first half of 2010 (H1 2009: CHF 48.3 million) and were up
in local currency terms. Compared with the prior-year period, there
considerable increase in demand for OEM components and a slight
Components & Detection recorded considerable growth in order entry
reporting period. Thanks to higher sales volumes and an improved cost
business segment's operating profit margin increased significantly, from
in the previous year to 15.1% of sales. Operating profit was CHF 8.5
56.0% up on the previous year (H1 2009: CHF 5.5 million).
Liquid Handling & Robotics
The Liquid Handling & Robotics business segment generated sales of CHF
million (H1 2009: CHF 114.9 million) in the reporting period. Sales
9.3% in Swiss francs and 12.3% in local currencies. OEM business in the
Handling & Robotics segment grew considerably in the first half of the
service and consumables businesses also continued to perform well. Order
which was also driven by OEM business, was significantly higher in the
half of the year than the prior-year period.
The product mix in the first half and the additional investments to
the growth strategy, which largely accrued to the Liquid Handling &
business segment, had a negative impact on the operating profit margin,
14.7% of sales fell below the prior-year level (H1 2009: 16.4%).
profit was CHF 18.5 million (H1 2009: CHF 19.0 million).
Sample Management (discontinued operation)
Sales in the discontinued Sample Management business segment totaled CHF
million in the first six months of 2010, 47.5% below the prior-year
2009: CHF 19.4 million). The operating loss was CHF 2.5 million,
from a small operating profit of CHF 0.3 million in the same period of
Non-cash effective impairment charges amounted to CHF 27.0 million in the
half of 2010. Additional transaction costs of an estimated CHF 1
further non-cash effective impairment charges of around CHF 4
anticipated for the second half of 2010 since they could not be booked
first half of the year.
Strong balance sheet - high equity ratio
Tecan's equity ratio increased during the reporting period and reached
of June 30, 2010 (December 31, 2009: 58.2%). Net liquidity (cash and
equivalents minus bank liabilities and loans) was CHF 83.9 million as
balance sheet date (December 31, 2009: CHF 80.6 million). Shareholders
an increase in the dividend for fiscal year 2009 to CHF 1.00 per
share at the Tecan Group Annual General Meeting, up from CHF 0.90 the
year. The payout took place on April 28, 2010.
New organization with stronger focus on growth strategy
In order to implement its strategy for long-term profitable growth even
sustainably, Tecan is refocusing its organizational and management
the end customer and OEM customer groups. Instead of the
product-oriented Components & Detection, Liquid Handling & Robotics and
Management business segments, for the latter of which a sales
signed on July 15, 2010, the Tecan Group will in future be made up of
business segments Life Sciences Business (end-customer business) and
Business (OEM business). Tecan is also creating or realigning
functions to better exploit synergies in research, development,
production across various locations, in order to speed up innovation and
increase overall operating efficiency.
The new organization will come into effect on January 1, 2011. With effect
this date, Tecan Group AG's Group Executive Committee will be adapted to
organization and reduced to six members. The Group Executive Committee
then consist of Chief Executive Officer Thomas Bachmann, Chief Financial
Dr. Rudolf Eugster, the Heads of the two business segments Life
Business and Partnering Business and the Heads of the Development &
Operations and Science & Technology functions.
Matthew Robin, who is currently in charge of the Liquid Handling &
business segment, will head up Partnering Business. Management of
Development & Supply Operations function will be taken over by Dr.
Dübendorfer, who is currently the Group Executive Committee member
for the Services & Consumables business unit. Tecan will make a decision
announcement about the management of the Life Sciences Business
Science & Technology function at a later date. The remaining members
current Group Executive Committee will continue to perform their previous
within the new Group organization or will assume new responsibilities
January 1, 2011, but will not be part of the newly formed Group
The Tecan Group's financial reporting will be divided into the two new
segments Life Sciences Business and Partnering Business from the 2011
Outlook for continuing operations
Demand for OEM instruments was extraordinarily high in the first half of
year and sales generated with OEM customers are expected to grow at a
rate in the second half of the year. In fiscal year 2010 Tecan is aiming
sales growth in its continuing operations of between 6% and 8% in local
Following the divestiture of the Sample Management activities, Tecan will
increasingly focus its resources on the growth projects in the Life
end-customer and Partnering OEM businesses. For 2010, the company is
additional investments of up to CHF 3 million for this purpose. Including
additional investments, Tecan expects an operating profit margin of 13.5%
15% for 2010, corresponding to an operating profit margin of 14.5% to 16.0%
2009 constant currencies.
A conference call discussing the results for the first half of 2010 will
place today at 9:00 a.m. (CET). The event will also be relayed by live
webcast, which interested parties can access at www.tecan.com. A link to
webcast will be provided immediately prior to the event.
The dial-in numbers for the conference call are as follows:
Participants from Europe: +41 91 610 5600 or +44 207 107 0611 (UK)
Participants from the US: +1 (1) 866 291 4166
Participants should if possible dial in 15 minutes before the start of the
Next key dates
- The 2010 Annual Report will be published on March 10, 2011.
- The Annual General Meeting of Tecan's shareholders will take
Zurich on April 19, 2011.
Tecan (www.tecan.com) is a leading global provider of laboratory
solutions for the biopharma, forensic and diagnostic industries. The
specializes in the development, production and distribution of automation
solutions for laboratories in the life sciences sector. Its clients include
pharmaceutical and biotechnology companies, university research
forensic and diagnostic laboratories. As an original equipment manufacturer
(OEM), Tecan is also a leader in developing and producing OEM instruments
components that are then distributed by partner companies. Founded in
Switzerland in 1980, the company has manufacturing, research and
sites in both North America and Europe and maintains a sales and service
in 52 countries. In 2009, Tecan generated sales of CHF 392 million (USD
million; EUR 259.6 million). Registered shares of Tecan Group are traded on
SIX Swiss Exchange (TK: TECN/Reuters: TECZn.S/Swiss security number:
For further information:
Dr. Rudolf Eugster Martin Brändle
Chief Financial Officer Head of Corporate Communications &
Tel. +41 (0) 44 922 84 30
email@example.com Fax +41 (0) 44 922 88 89
- For financial tables, please follow the link to pdf -
--- End of Message ---
Tecan Group AG
Seestrasse 103 Männedorf Switzerland
Press Release H1 / 2010 (PDF):
Interim Report 2010 (PDF):
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