Annual Report 2006

22
Production Equipment
The Mikron Assembly Technology
management team (l. to r.):
Werner Beck, Clark Neft, Alex
Wyss, Markus Brülhart, Rolf Rihs,
Markus Werro, Josef Neuenschwander,
Felix Arrieta
Business trend The 2006 business year was marked by an exceptionally high level of
order intake in the first quarter, which resulted in a challenging order processing situation,
a pronounced upturn in sales, and the further development of the G05TM assembly
platform.
In 2006, the Assembly Technology division
operated in a more or less unchanged business
environment. There was a noticeable surge
in investment activity on the part of Assembly
Technology’s customers, which had already
manifested itself in the last quarter of 2005 and
continued through into the first quarter of the
year under review.
Order intake was slightly up on the previous
year and thus in line with expectations. The
division recorded an unusually high order intake
in the first quarter of 2006, building on the
already pleasing order backlog with which the
company started the year. As expected, order intake subsequently dropped off, remaining at a
low level until the end of the year. The good mix in terms of market segments and regions was
gratifying.
Sales volume was well up on the previous year and exceeded expectations by a clear margin.
This was partly due to the fact that a large proportion of orders were received in the first quarter
and were completed within the same year. On the other hand, the accumulated orders as per
the end of March posed a major challenge for the division, making order processing a complicated
task right up to the fourth quarter. Capacity utilization at the division ran at a very high
level and headcount was adjusted accordingly.
Nearly half of the division‘s sales were to companies in the medical and personal care industry.
Its main customers were manufacturers of self-medication devices such as insulin pens or inhalers.
Suppliers to car manufacturers accounted for slightly over a quarter of sales. These customers
use solutions from the Assembly Technology division, for example, for airbag ignition units
or fuel injection sub-assemblies.
Operating profit (EBIT) was down slightly year-on-year and, in view of the marked increase
in sales, fell short of expectations. The high capacity utilization at the division had a negative
impact on its earnings power. The result was impacted by expenditure for handling the, at
times, very high order backlog and by a number of challenging orders. Up-front costs for further
development of the G05TM assembly platform were an additional burden. All in all, though, the
division‘s profitability remained at a satisfactory level.