Manz AG reports dip in revenue for H1 caused by unexpected order cancellation

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German high-tech equipment manufacturer Manz AG posted a slight and unexpected dip in revenues at the end of the first half (H1) of the year after one of its major customers in the energy storage business segment unexpectedly cancelled a large order.

Across the firm’s core business segments of electronics, solar and storage, performance had been generally sound following a strong start to the year.

Revenue for H1 reached €124 million ($138 million) which, following Manz’s recent restructuring, signaled the successful implementation of the steps it had taken to lower costs.

However, EBITDA came in at €-4.5 million, with the preliminary order stop catching the firm off-guard. "Therefore," explained Manz AG founder and CEO Dieter Manz, "we are missing revenue in the middle single-digit millions range."

Looking ahead to the second half of the year, Manz is confident that this is just a blip, with the managing board confident of a significant increase in revenue and vastly improved EBIT figures for the full year. This bullishness stems in part from the company’s strategic cooperation with Shanghai Electric, but is tempered somewhat by the “planning uncertainties” caused by the unexpected order stop.

For Manz’s solar segment specifically, revenue hit €17.5 million in H1, accounting for 14.1% of the firm’s overall revenue – an increase on €10.6 million and 8.6% revenue share in H1 2015. Storage accounted for 28.1% of revenue, hitting €34.9 million. This was down year-on-year from 41% share and €49.7 million.

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