A significant decline in sales and new orders, coupled to higher annual losses in 2011, compared to 2010 have forced Roth & Rau to implement further company-wide restructuring and reduce its global headcount. Preliminary sales for 2011 reached €208 million, down from €285 million in 2010.
Roth & Rau reported new orders net of cancellations amounted to €153 million, compared to €537 million in the prior year. Order backlog at the end of 2011, stood at €141 million, compared to €336.5 million in the prior year period.
EBIT was negative €107 million compared to negative €27.3 million in the prior year. One-off items were said to have contributed €93 million to the losses in 2011. Cash and cash equivalents stood at €30 million at the end of the year, down from €108 million in 2010.
Although the equipment supplier had undertaking a range of restructuring projects during 2011, management noted that due to the circumstances, further restructuring effort would be implemented and at a faster pace.
Approximately 200 jobs will go, according to the latest restructuring efforts. At its headquarters in Hohenstein-Ernstthal, Germany approximately 63 positions will be lost or approximately 15% of the workforce at that location.
The remaining job losses would come from a major rationalisation of its subsidiaries. Only 12 companies will remain within the Group, down from the current 26. In Germany, the complexity of the group structure is to be further reduced by merging companies.
Regional customer support operations in Asia will be amalgamated within Meyer Burger’s sales and service companies within the region, though no job losses are expected as part of the move.
However, the company noted that loss-making subsidiaries, which included the production company in Italy and the sales companies in Australia and the USA, would be shut-down.
Roth & Rau said that the restructuring would be implemented in full by the end of the first half of 2012, with expected annual savings of €18 million. The one-off restructuring expenses are expected to result in a €3 million charge on earnings in 2012.