First Sensor AG, a developer and manufacturer of standard products and customer-specific solutions in the growth market of sensors and sensor systems, started fiscal 2018 with sales of €34.5 million at previous year’s level. Related to reporting date factors, output decreased in connection with the introduction of a new ERP system for company management as at January 1, 2018. Due to sales-related decrease in economies of scale combined with increased material and personnel expenses to secure further growth, the EBIT is at €1.1 million after the first three month. This resulted in an EBIT margin of 3.1% (PY: 5.1%). Net profit for the first quarter of 2018 totaled €0.2 million (PY: €1.2 million), with earnings per share of €0.02 (PY: €0.13).
“After having full order books as at December 31, 2017, we could not yet realize our full economic potential in the first three months of the current year,” says Dr. Dirk Rothweiler, CEO der First Sensor AG. “At the same time a continued high demand for sensors and integrated manufacturing services from First Sensor gives us a tailwind for the rest of the year and we are confident to reach the planned sales and EBIT targets for the fiscal year 2018.
In the Industrial target market, First Sensor generated sales of €16.3 million in the first quarter of 2018. This was €1.5 million lower than in the previous year (PY: €17.8 million). Based on the order backlog and incoming orders, sales are expected to increase over the course of the year. In the Medical target market, sales amounted to €7.4 million in the first quarter of 2018. Compared to the first quarter of 2017 (PY: €6.4 million), a sales increase of €1.0 million was achieved. This is primarily due to optical diagnostics customers. In the Mobility target market, sales amounted to €10.8 million in the first quarter of 2018. This represents an increase of €0.7 million compared to the first quarter of 2017 (PY: €10.1 million). This is primarily due to a greater demand in the area of pressure sensor technology.
Incoming orders and orders on hand
Incoming orders at €39.3 million were up year-on-year (PY: €35.1 million). As an important growth indicator, our book-to-bill ratio thus came to 1.14 as at the reporting date (PY: 1.02). Due to the lower output in connection with the introduction of a new ERP system, the order backlog also increased. It now totals €97.3 million (PY: 88.9). The incoming orders and the order backlog provide good opportunities for a more dynamic business performance in the coming quarters.
Balance and cash flow
At €159.2 million, total assets were almost unchanged as against December 31, 2017. One significant change is the increase in the inventories item, which allows for an improvement in delivery capability. The increase of around €2.8 million was financed with cash and cash equivalents. Net debt amounts to €25.2 million and is thus slightly lower than in the previous year (PY: €27.3 million). Compared to the first quarter of 2017, equity increased to €82.1 million (PY: €78.7 million), with an equity ratio of 51.5% (PY: 50.9%).
With roughly constant sales and a significant increase in inventories, cash flow from operating activities improved slightly compared to the same period of the previous year. It now amounts to €0.07 million (PY: €-0.2 million). Moderate additions to investments in the first quarter of 2018 curbed the outflow of cash in comparison to the same period of the previous year, causing the change in cash in the free cash flow to improve slightly by €-1.9 million year-on-year (PY: €-2.5 million). The negative cash flow from financing activities of €-0.6 million was also lower than in the first quarter of 2017 (PY: €-1.9 million) as a result of the more usual financing activities from repayments in a small amount and interest payments.
The increase in employees at the First Sensor Group from 783 FTEs (full-time equivalents) in the first quarter 2017 compared to 811 FTEs in the first quarter 2018 is attributable to additional requirements for in sales and production to secure future growth. In relation to the current sales level, sales per employee have therefore temporary decreased.
All in all, the business performance in the first quarter of 2018 does not reflect the expectations and potential for the year as a whole. The growing order backlog and continued high incoming orders support the Executive Board’s forecasts of closing 2018 as a whole with sales between €150 million and €160 million and an EBIT margin between 7% and 9%. With very good growth opportunities still in the medium and long term, the goal is to gradually increase the EBIT margin to 10%.
|in € million, unless otherwise indicated||Q4 2016||Q1 2017||Q2 2017||Q3 2017||Q4 2017||Q1 2018|
|EBITDA margin (%)||11.2||11.7||11.0||16.0||14.1||9.5|
|EBITA margin (%)||6.1||6.9||6.3||11.9||9.3||4.7|
|EBIT margin (%)||4.4||5.1||4.6||10.4||7.8||3.1|
|EBT margin (%)||4.0||4.1||4.4||5.5||5.2||1.8|
|Net profit for the period||0.2||1.2||0.8||0.9||1.3||0.2|
|Earnings per share (EUR)||0.02||0.13||0.08||0.09||0.13||0.02|
|Cash flow from operating activities||7.2||-0.2||2.0||3.8||10.4||0.1|
|Free cash flow||5.1||-2.5||-0.7||0.9||5.8||-1.9|
|Balance sheet total||154.0||154.6||153.1||158.3||159.6||159.2|
|Equity ratio (%)||50.3||50.9||51.8||50.7||51.3||51.5|
|Orders on hand||82.2||88.9||90.7||96.5||92.5||97.3|
|Employees (as of March 31, 2017)||804||783||784||784||798||811|
|Sales revenues per employee in thousand €||44.0||43.9||44.1||50.1||49.2||42.5|
|Number of shares in thousand||10,208||10,211||10,211||10,211||10,216||10,216|
*Rounding differences may arise.Financial Calendar
− German Spring Conference on Thuesday, May 15, 2018
− The 2018 Annual General Meeting of First Sensor AG takes place on Wednesday, May 23th, 2018 at Pentahotel Berlin Köpenick, Grünauer Straße 1, 12557 Berlin
This report contains statements of a predictive nature and does not represent any incitement to purchase shares of First Sensor AG, but rather is intended exclusively for information purposes with regard to possible future developments at the company. All future-oriented information in this consolidated financial report were produced on the basis of probability-based plan and represent statements regarding the future which cannot be guaranteed.
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