Miba AG, a manufacturer of sintered components, reports that its revenue in the first half of 2015–2016 (February to July) rose by 14% to €375.2 million, representing a positive revenue and earnings performance due to favorable currency translation effects and strong demand from the automotive sector. However, the momentum from the first quarter did not continue to the same extent in the second quarter, and a further downturn in growth is expected for the second half of the year, the company says.

Most of this revenue growth was based on foreign currency effects and company acquisitions and the share of organic growth declined from the first to the second quarter. Earnings before interest and tax (EBIT) improved to €49.7 million (after € 41.9 million), which equated to an EBIT margin of 13.3% (previous year: 12.7%). The positive earnings performance was strongly supported by currency translation effects.

Capital goods

‘The business has performed in line with expectations thanks to the momentum from the currency situation,’ said Miba chairman of the management board, F Peter Mitterbauer. ‘Demand from the automotive sector, which was still strong, contrasted with a marked slow-down in the capital goods sector at a global level.’

The company suggests that the persistent downturn in the capital goods industry will lead to a further slowdown in its growth in the second half of 2015–2016. Growth will primarily be sustained by the automotive industry, while Miba expects demand in most other sectors to stagnate.

This story is reprinted from material from Miba, with editorial changes made by Materials Today. The views expressed in this article do not necessarily represent those of Elsevier.