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Metris became a member of the Nikon group
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Dit artikel in het Nederlands
Regulated information
Metris 08Q3 trading update: EBITDA on track,
Coping with recession through new revenue and cost initiatives to reach 08 plan
Leuven, November 18th 2008 - Metris, leading innovator in the metrology industry, today issues its 08Q3 qualitative trading update, in line with article 14 of the Royal Decree of November 14th, 2007. The group will announce its H2 and full year 2008 results on March 18th, 2009.
After publishing 08H1 figures on track, 08Q3 gross profit and EBITDA have come in on track as well. Sales did grow at exactly the same pace as during 08H1. Organic sales growth in local currencies was slightly higher than during 08H1.
Meanwhile recession has arrived in the Metris business with reduced order intake from end customers. As a result of the economical uncertainty and liquidity crisis, various customers’ budgets were frozen and investments delayed, across most geographical segments, ranging from North America, over Korea, France to Germany. To cope with recession, Metris takes new revenue and cost initiatives, i.e. by generating extra revenue from its existing and new market channels as well as by reducing fixed costs such as operational expenses and capital expenditures. Ongoing revenue initiatives are amongst others: tactical marketing programs, negotiating stock orders with existing distributors as well as new distributors, technology licensing to partners etc. The cost initiatives will reduce fixed costs with 15% in 2009 over 2008. Effects on the full year 2008 are more modest since cost savings were initiated later in the year 2008 and also induce one-time charges. Both revenue and cost initiatives have already proven their success in Q3 by allowing the realization of the gross profit and EBITDA targets. The initiatives are continued and expanded during Q4, targeted at realizing 2008 gross profit and EBITDA plan as well.
Product mix and margin evolves positively, based on the same long term trends communicated in the previous updates: the optical business continues to grow faster than the mechanical business given improved adoption of the new optical technologies. This long term trend is even reinforced on short term since both order slow down and new revenue initiatives have a positive influence on product mix and margin. The classical mechanical CMM business tends to be more recession sensitive, while the new optical higher margin products are more recession resistant.
The stronger US$ increases the Euro top line in 08H2. Although the translation effect of the US$ exchange rate is positive, the effect on margin is neutral, since operational expenses increase as well with a strengthening US$.
All acquisitions have meanwhile successfully been integrated, also the last acquisition of
IQ Metrology Inc, announced in June 2008. No further acquisitions in 2008 are anticipated today.
Due to current economical conditions, sales will come in short of plan for the full year 2008. Gross margin however will positively be affected by recession given product mix shift towards recession resistant high margin products and new revenue initiatives focused at products with higher margins. Therefore the objective for Metris remains to realize its EBITDA plan, in line with expectations. Cost initiatives serve this objective but are mainly directed at anticipating for the 2009 recession.
About Metris
Contact
Renaat Van Cauter – Metris – marketing@metris.com – Tel +32 16 74 01 00 - Mobile: +32 486 64 24 33
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