Manufacturing equipment supplier Manz AG has issued a warning that it may not be able to meet profit forecasts after an unnamed “large project” in its energy storage segment was halted.
The company, which supplies the electronics, solar energy and energy storage industries through three separate business segments, informed investors that one of its customers declared the project had come to a stop on 10 June.
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Manz, which in November of last year declared energy storage to be the “fastest growing segment” of its three businesses, said that its management board will begin discussions with the customer in the short term to determine whether the announcement from its customer constitutes a complete end to the project.
According to Manz, it will be able to offer further clarity and guidance for investors once these negotiations have taken place, including its possible and expected impact on company financials.
Manz said there was “therefore the risk that the company`s previous expectation for 2016 – a significant revenue increase compared to revenues of €222 million (US$250 million) in fiscal year 2015 and a significantly improved earnings before interest and taxes (EBIT) compared to the EBIT of €-58.2 million in fiscal year 2015 – cannot be achieved.”
In its first quarter 2016 financial reporting in mid-May, the company said it had managed a “good start” to the fiscal year, with quarterly revenues up 19.5% compared to the previous year’s equivalent period. Manz also announced that it had attracted investment via a strategic partnership with China’s Shanghai Electric at the time, expected to be used across all three segments of the Germany-headquartered equipment supplier’s business.