Manz AG responds to market environment and reviews efficiency program

Manz AG: Manz AG responds to market environment and reviews efficiency program

- Noticeable slowdown in the European electromobility market

- Adjustment of 2024 forecast: revenue and earnings significantly below previous year

- Streamlining of processes and structures, cost reductions planned

Reutlingen, June 27, 2024 – The Manz AG, a global high-tech equipment manufacturer with an extensive technology portfolio, is planning to introduce a comprehensive efficiency program due to ongoing challenges in its direct market environment.

The market environment for the German mechanical and plant engineering sector did not stabilize as expected over the course of the second quarter of 2024. The reluctance of European customers to make new investments, particularly in the area of battery production, has increased significantly in recent weeks. This has led to Manz AG's order intake falling short of expectations. The Managing Board does not expect any noticeable improvement in the market environment within the next few months, meaning that the weak order intake to date is unlikely to be compensated for in the second half of 2024.

Following a comprehensive analysis, this has prompted the Managing Board to reassess the business situation. It now assumes that sales and earnings for 2024 as a whole will be significantly below the previous year's level and that the original forecast will not be achieved. The decline will primarily affect the Mobility & Battery Solutions segment. The Industry Solutions segment still has a higher order backlog from the previous year, meaning that business development in this segment should be more solid in 2024.

The Managing Board and Supervisory Board are examining various alternatives in order to respond to these challenges with an action plan, the specific details of which will be defined and published in the coming weeks following the completion of an analysis process. The aim is to improve operating performance, streamline processes and structures and further reduce costs.