Montana Tech Components AG (MTC) succeeded in raising the operating result (EBIT) of the group to € 13.6 million despite sales declining by 13%.

All three divisions – Aerospace and Industrial Components, Metal Tech and Varta Micro Power – reported a positive operating result in the year 2009. In addition, on a consolidated basis a positive net result for the period 2009 could be realised for the first time (approx. € 4.6 million). The group equity increased by 24% to € 124 million which results in an equity ratio of 34%. The net debt of the group fell from € 128 million to € 101 million.

The consolidated cash flow from operating, investing and financing activities amounted to € 9 million in the business year 2009 compared to € 5 million in 2008. The rise of the cash flow from operating activities from € 15 million to € 34 million has been a particularly positive development.

Klaus Sernetz, CEO, is highly pleased with the group performance in 2009 considering the aspect of the economic environment and regards the group’s diversified portfolio as one of the core advantages for defying the economic crisis.

In 2009 two capital increases have been successfully underwritten by existing shareholders and raised a total of € 28 million for the group.

The exchange offer by MTC AG to the minority shareholders of Alu Menziken Holding AG ended successfully in January 2010. Montana Tech Components currently holds more than 98% of the capital rights and more than 99% of the voting rights of Alu Menziken Holding AG. The booking entries for the adjustment of the minority shares affected the net income of the MTC group positively.

In 2009 € 21 million have been spent for investing activities in the divisions, thereof solely € 12 million have been used for building the new aerospace plant in Romania.

Furthermore, Varta Micro Power realised two investments in research & development activities, at first an investment of 50% in a joint venture with Volkswagen for the purpose of research in future battery systems for electric and plug-in hybrid electric vehicles, secondly by taking up a 19% investment in a research company with Graz University of Technology which focuses on application-oriented research & development for lithium-ion consumer batteries. These investments are expected to open up new perspectives for the Varta Micro Power division in the medium term.

Financials by divisions

The financials of Aerospace & Industrial Components have been significantly affected by the sharp fall of the net sales as well as the operating result of Alu Menziken Extrusion AG on one hand and the start up losses of UAC Europe S.r.l in Romania on the other hand.

The number of employees worldwide has been reduced from 2,817 to 2,570 due to the economic environment. Because of this fact, restructuring costs had a negative impact on the operating result of the group. The management, however, does not expect any further significant restructuring programmes to be necessary in the course of the business year 2010.

Klaus Sernetz, CEO, is confident that the global economic crisis has reached its peak and that the business units have accomplished all necessary measures for cost reductions to respond to the changed market environment and have accounted for them from a financial point of view.

Moderate climb of sales (+ 5%), but significant increase of operating margin in 2010, in particular due to the turn around of Alu Menziken Extrusion AG, the start of production in the new Romanian plant and a further increase of results in the Varta Micro Power division.