Annual Report 2006

The Mikron Machining Technology
management team (back row
l. to r.): Raffaele Olgiati, Laurent
Vuille, Oskar Weder, Peter
Schneck, Koichi Tsugami, Daniele
Pigat; (front row l. to r.): Gennaro
Teta, Adriano Zamprogna, Peter
Krattiger, Markus Schnyder,
Giordano Gaboardi, Franz Wyss
Production Equipment
Business trend The 2006 business year was marked by a good order intake in the first
half, attainment of series production status by the Mikron NRG-50TM and a review of
internal structures and processes to identify ways of improving profitability.
The business environment in which the Machining
Technology division operates saw virtually
no change in 2006. The reorientation by a
major European car manufacturer in the sector
of fuel injection technology also impacted
on the supply industry that Mikron serves.
Although this somewhat clouded the mood
among investors in Europe, customer appetite
for investment still remained at an attractively
high level.
Order intake edged up slightly year-on-year
and was in line with expectations. The division
acquired a large number of new customers,
some of them in new or freshly-targeted market segments. The first orders for the new Mikron
NRG-50TM machining system accounted for a significant share of total machine orders.
Sales volume was also up slightly on the previous year, but failed to meet expectations fully.
Increased sales in the tools segment compensated in part for the somewhat weaker sales of
machines. Overall, capacity utilization at the division remained at a good level throughout the
whole year.
Around three-quarters of the division’s sales are to suppliers of components to the automotive
industry. These companies use machines and cutting tools, for example, for manufacturing the
latest generation of injection systems and for other engine components. Another significant
percentage of sales is accounted for the writing instrument industry. For many years now, about
95 percent of the 40 billion ballpoint pen tips manufactured annually worldwide have been
produced on machines supplied by Mikron.
Operating profit (EBIT) was on a par with the previous year’s level and thus fell short of expectations.
Although the company made good progress towards improving its profitability,
unexpected isolated events in the last quarter prevented the division achieving its target for the
year under review.
Specifically, this involved a handful of orders from which customers withdrew before completion
of the system, and although small in number these represented a substantial order volume.
All these orders concern an older product line, whose application profile had to be restricted as
a result of the latest findings. Extraordinary write-offs amounting to CHF 4.4 million had to be
made in the year under review for non-chargeable services and for materials. The product line
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