MBTN recently announced that the company initiates a broad program structure. This program has comprehensively focusing on the high-end photovoltaic strengthen the goal of the entire company in its strategic areas of technology application markets and increase the flexibility over the often challenging high-tech markets. Further, the global service business is strengthened and developed individually within the local customer and application markets. Through the restructuring program, total operating costs will be reduced once more sustainably by around CHF 50 million.
Meyer Burger has already carried out in the past five years due to the extremely challenging situation in the solar industry numerous measures to reduce operating costs, structural improvements and capacity adjustments and the level in personnel and operating expenses of CHF 330 million in fiscal 2011 to 36% in CHF 210 million reduction for the fiscal year, 2015. In the first half 2016, Meyer Burger has again reached the first time since 2012 at EBITDA level profitability. The positive EBITDA of CHF 6.2 million and the positive operating cash flow of CHF 15.4 million in the first half 2016 confirm the path and the turnaround of the company. Thus, the company long-term sustainable and can be reached at level net income breakeven, but more comprehensive structural adjustments are necessary.
The medium and long-term goal is to strengthen the entire company in strategic technology areas with a focus on the high-end market applications in photovoltaics and increase flexibility in terms of short-term market changes by industry leading and production-tested technologies and products and a strengthened local service business. By connected to the structure of the program cost-cutting measures, the annual overall operational costs of the company will be reduced once more sustainably by around CHF 50 million.
completed cost-cutting measures by the end of 2016
The organizational structures and production units in the technology and production sites are optimized and aligned with the core technologies. In addition to be made in Asia further capacity adjustments. The Department of Research and Development, the global sales and service organization, as well as certain parts of the product portfolio will be further streamlined. which measures total lead to a very lean company structure with a focus on high-end application markets in photovoltaics.
By the structural program of headcount compared to mid-year 2016 (1’547 FTE) is lowered by the end of 2016 again by approximately 250 positions or 16%. A third of these concerns offices in Switzerland, particularly at the sites Thun. In Switzerland starts with the day together with the employee representatives an appropriate consultation process. Wherever possible the degradation by natural fluctuation or early retirement schemes will be carried out. However, probably dismissals for some employees will be unavoidable. Meyer Burger regrets the associated effects on the persons concerned and will implement the measures as socially acceptable. Exceptional charges related to the restructuring program, the financial statements 2016 strain once around CHF 3 to 4 million.
“The improvements in the first half 2016 by the markets but also in terms of operating results are very encouraging. Nevertheless, we have to be able to bring the company on stage net profit lasting back into the profit zone. We want to align our company for the future leaner, more flexible and more focused on the high-end market applications in photovoltaics. These, unfortunately, drastic measures in the organizational structure are necessary. This decision is not easy for us. With this new structure program but the conditions are created that Meyer Burger their operating profitability can increase again and continues to benefit from its strong market position, “said Peter Pauli, CEO of Meyer Burger.