Annual Report - Miba

Cautiously optimistic
Outlook
Miba’s prospects for the 2005/06 fiscal year vary according to the business segment
concerned. Miba Sinter Group, which primarily caters to the European automotive
industry, has some reservations. Most of the European car manufacturers can feel the
consumers’ reticence to spend and do not expect any increases in production figures for
the current year. In 2005/06, Miba Sinter Group’s economic environment is characterized
by further production relocations by car manufacturers to Central and East European countries
and increased cost pressure.
Miba Bearing Group, on the other hand, was able to carry the momentum gained in the
previous fiscal year over into the first months of the current year. Demand from Asia
remains high. Business activity in the US does not show any sign of weakening either.
Incoming orders developed favorably during the first months of the 2005/06 fiscal year.
In 2005/06, Miba Friction Group’s growth will mainly stem from its original equipment. The
main focus is clearly on enlarging its market share in this field. For the current year, a
number of series introductions of new linings are planned. In general, the forecasts for
2005/06 by our main customers and therefore of Miba Friction Group are cautiously
optimistic.
In a nutshell, it can be stated that Miba’s business development in 2005/06 will be
influenced by the further developments in the Euro-Dollar exchange rate and the prolonged
strained supply situation on the international commodity markets. Furthermore, price
hikes for raw materials and energy are expected to take place in all three business
segments and must be compensated by increased productivity.
In light of the present situation, Miba AG’s Management Board believes that a constant
earnings situation along with a moderate sales increase seems realistic for the 2004/05
fiscal year.
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