Recovery of new orders and sales revenues (0324)

Key data for third quarter of 2003

The Micronas Group can look back on a good performance in the third quarter of 2003. There was an unexpectedly rapid recovery in the run of business. Sales and earnings were both up on the previous quarter. The same improvement is apparent if the first nine months of 2003 and 2002 are compared.

In the reporting period, consolidated net sales reached CHF 200.4 million, a rise of 26.4 percent on the previous quarter. Compared with the first nine months of 2002, sales came in 5.3 percent higher at CHF 550.2 million; adjusted for currency effects this represents a rise of 2.1 percent.

Both core business divisions contributed to this good performance. For the Consumer division, the third quarter is traditionally a strong sales period as the consumer market gears up for Christmas. In the current reporting period, there were also signs of a revival in demand for consumer electronics products, which had a positive impact on Micronas's order situation.

The Automotive division also made pleasing progress in accordance with our expectations, despite the fact that the international automotive market is yet to turn the corner. The demand for Micronas dashboard controllers as well as Hall sensors continues to be very buoyant.

The operating profit before depreciation and amortization of goodwill (EBITDA) increased to CHF 63.8 million, 25.3 percent up on the previous quarter. In the first nine months of the current year, the cumulative EBITDA amounted to CHF 178.0 million, representing growth of 10.0 percent over the comparable period of 2002.

The operating profit (EBIT) rose 61.0 percent compared with the previous quarter, attaining CHF 34.3 million in the third quarter of 2003. EBIT for the first nine months of 2003 amounted to CHF 91.2 million, a rise of 14.4 percent compared with the same period of 2002.

Net profit in the third quarter reached CHF 21.5 million, a 25.7 percent improvement compared with the second quarter. The first nine months of the current year generated a net profit of CHF 62.0 million. This was 43.9 percent higher than in the comparable period of 2002. Earnings per share amounted to CHF 2.30; adjusted for amortization of goodwill after tax, the figure was CHF 2.75.

The outlook for the business year as a whole promises an increase in sales compared with the previous year in the mid-single-digit percentage range. Net profit in percent of net sales is likely to be in the higher single-digit range.

The Micronas Group is a leading independent supplier of innovative application-specific semiconductor solutions for multimedia, consumer and automotive electronics. Its shares are listed on the SWX Swiss Exchange and on the Prime Standard segment (TecDax) in Frankfurt.