MS Industrie AG: Update on the business situation in the 2nd half of 2024

München (pta008/04.11.2024/10:00) -
* European truck registrations >16t down -9.1% as per end of September 2024
* Weaker call-off figures for MS XTEC in Q3 / Q4 2024; sales forecast slightly lowered
* Increases expected from 2025; long-term outlook remains positive
* Expansion of acquisition strategy to new applications/industries
* Automation of production completed by the end of 2024

According to ACEA (Association des Constructeurs Européens d ` Automobiles, Brussels), the market for heavy commercial vehicles in Europe, which accounts for around 60% of the MS XTEC division's sales, declined by -9.1% in the first nine months of 2024 compared to the same period of the previous year; in Germany, the decline was slightly weaker than the European average at -12.3%.

In parallel, call-offs by MS XTEC's truck customers in Q3 and foreseeably also in Q4 of the current year are noticeably lower than planned. The Board of Directors and management attribute this to a reduction in inventories across the entire truck supply chain, which had built up in previous years as a result of precautionary planning by OEMs due to the negative experiences from the supply chain crisis. Against this backdrop, the Board of Directors is lowering its sales forecast for 2024 from EUR 180 million to around 170 million, i.e. by -5.6%; at the same time, MS XTEC expects customer call-offs to increase again from the beginning of 2025.

The mileage index in the transportation sector (and therefore also engine wear and tear) remains at a high level in Germany. According to the "Transport Forecast 2040" published by the Federal Ministry for Digital and Transport Affairs (as of October 2024), freight transport by road will increase by +34% in Germany by 2040; this is based on economic growth, economic interdependence, consumer behaviour and changes in the structure of goods (more parcels and general cargo). The longer-term outlook for MS XTEC therefore remains intact and positive, especially on the basis of its multi-year single-source contracts. Another important factor is MS XTEC's expanded strategic focus, which includes less dependence on the market for heavy commercial vehicles and an acquisition focus on precision parts for related and other applications and customer industries.

Using flexible / "breathing" shift models, the management of MS XTEC is using the current phase to drive forward internal process optimizations and, above all, to complete and fully implement the major automation innovations at the Trossingen site, which were launched and financed in 2020, by the end of 2024, so that an improvement of profitability can be expected.

The financial data as of September 30, 2024 will be published as planned in calendar week 47. This will also show the positive balance sheet effect from the sale of 51% of MS Ultraschall Technologie GmbH to Schunk Sonosystems GmbH on July 5, 2024, which will have its impact in Q3 2024.

Background:

MS Industrie AG (WKN 585518; ISIN DE0005855183), based in Munich, is the listed parent company of a focused technology group with core expertise in highly automated metalworking and assembly (" MS XTEC ": systems and components for heavy-duty combustion engines as well as hybrid and electric drive systems) and – since the beginning of July 2024 – a minority shareholding in ultrasonic technology ("MS Ultrasonic": special machines, standard machines as well as ultrasonic systems and components).

MS XTEC 's main customer sectors include the global commercial vehicle industry, followed by the construction machinery industry and other heavy-duty applications through to stationary power generation.

The group generated a sales volume of around EUR 250 million in 2023 and expects – after the current transition year – a sales volume of over EUR 150 million from 2025 with around 400 employees and two production sites in Trossingen / Baden-Württemberg and Charlotte / North Carolina (USA).

Press Contact :

BeckerBeratungsGesellschaft (BBG)
Neustr. 23
55296 Gau-Bischofsheim / Mainz
Klaus-Karl Becker
+49 (0) 172 61 41 955
kkb@b-bg.de

Disclaimer:

The publisher of this document is MS Industrie AG based in Munich. Although the information in this document comes from sources that MS Industrie AG considers reliable, no guarantee can be given for the correctness of the information in this document. This document does not constitute a prospectus and is also not suitable as a basis for evaluating the securities presented in the document. Estimates and opinions contained in this document represent the assessment of MS Industrie AG at the time the document was created and are subject to change at any time without prior notice. MS Industrie AG and/or its affiliated companies may from time to time hold positions in the securities referred to in this document or in options, futures and other derivatives based thereon, may provide other services (including those as advisors) to each company named in this document, provide or have provided and may (to the extent permitted by law) have used the information contained herein or the research on which it is based prior to its publication. Any kind of advisory relationship between MS Industrie AG and the recipient of this document is not established by the provision of this document. Each recipient must conduct its own research and take precautions to check the profitability and reasonableness of an investment decision, taking into account its personal and economic interests. MS Industrie AG is not liable for the consequences of trusting in opinions or statements in this document, nor for the incompleteness of the same. Any citizen of the United States of America who receives this document and wishes to transact in securities referred to herein is required to do so through a US-licensed broker.

(Ende)