Based on its strong government business and the progressive intensification of its industry business, the Mühlbauer technology group was able to build on its positive start to the financial year in Q2 2010.

While incoming orders almost doubled compared to the same period of the previous year, sales and earnings climbed to a historic quarterly record high and significantly exceeded the values for the same quarter of the previous year. Based on the extremely positive development in sales and earnings recorded in Q2 2010, and the high order backlog to the end of the quarter under review, the Mühlbauer Group raises its earnings forecast issued for the total year and is now expecting to achieve an EBIT of at least €25 million in the 2010 financial year.

While quarterly sales were significantly higher year-on-year, at €63.3 million (PY: €43.2 million) and up 46.5% due to growth in all business areas, EBIT for the quarter under review rose more than five-fold against the same period of the previous year, at €14.4 million (PY: €2.7 million). This corresponds to a significantly higher EBIT margin of 22.7%, after 6.3% or adjusted 9.5% year-on-year.

On a half-yearly comparison, sales increased from €81.3 million to €92.8 million, which is equivalent to a growth in sales by 14.1%. Adjusted for special effects from legal disputes with an effect on the income statement, which have, however, since been settled, the EBIT of €14.2 million, achieved in 1HY 2010, almost doubled year-on-year (PY: €7.6 million). Taking into account these special effects, the EBIT achieved in 1HY 2010 totals €16.2 million, which amounts to more than triple the EBIT achieved in the same period of the previous year (€5.1 million). This corresponds to an EBIT margin of 17.5%, after 6.3% year-on-year.

In 1HY 2010, at €24.9 million, cashflow from operating activities, adjusted for cashflows from transactions with short-term marketable securities, was €18.5 million above the level for the same period of the previous year (€6.4 million). The reason for this distinct rise are primarily the higher net earnings and inflows of liquidity from the reduction of working capital.

Significant increases of order income in all business areas of the Mühlbauer technology group resulted in a total order income of €59.2 million in Q2 2010 and thus to an upturn of 90.4% against the same period of the previous year (€31.1 million).

While the order book in the company’s core business area Cards & TECURITY rose 74.3%, to €33.3 million, due largely to government orders for the implementation of ID projects, the order volume in Semiconductor Related Products in fact more than doubled year-on-year, from €8.5 million to €17.7 million. In Traceability, orders increased from €1.0 million to €2.5 million year-on-year, which represents growth of 150.0%. At €5.7 million (PY: €2.5 million), Precision Parts & Systems recorded an increase of orders of 128.0% for the same period. In the first half of 2010, the high growth of order income of the Mühlbauer technology group led to a cumulated order income of €173.1 million, thereby doubling incoming orders compared to same period in the previous year (€83.3 million). To the end of the reporting period order backlog totaled €149.5 million and thus lagging only slightly behind the Q1 2010 figure (€154.6 million).