VIPsight - November 2015

COMPANIES

Biotest: Amortization USA

In a profit alert, Biotest AG, the SDax-listed specialist in blood-plasma based medicinal products has announced that it is obliged to amortize 84 million Euros of its US business in the United States. The ruling mainly affects therapeutic initiatives in the United States where companies are under obligation to amortize manufacturing plant, parts of buildings and warehoused stocks of product, and fixed assets. German production is not affected – all the development initiatives are already funded. This measure means Biotest will have to post a loss for the first three quarters of the year.

Manz: second profit alert

The weak Asian market, reflected in the 2015 third quarter results is cited by machine tool manufacturer Manz AG as the reason for having to revise downwards its forecast for the whole year. The management of the TDax-listed company is now forecasting a turnover of no more than 200-210 million Euros and a negative EBIT in two figures. Initially Manz had forecast a lower turnover than in the previous year – some 306 million Euros – and a negative EBIT, that although tough, was certainly better than this.

In a note, the company states that revising the forecasts became inevitable after the orders placed in particular by Asian customers became increasingly serviceable by the Energy Storage and Electronics business areas. The present weak condition of the Chinese market and the way capital is being developed mean that fewer resources are being made available for investment there. This business will in all likelihood only appear in next year’s turnover.

Manz’s executive board has resolved to adapt itself to the new scenario by restructuring in order to cut costs and foster growth recovery. The company intends to focus prevalently on market sectors that are growing, such as Consumer Electronics and Energy Storage, but also open the door to strategic options in the Solar business area. This is the second profit alert issued this financial year, indeed the Bafin watchdog is reviewing the fall in value of Manz shares.