GARCHING (dpa-AFX) - Süss Microtec has got rid of a burden: The chip supplier intends to become more profitable with the sale of its weakening division for micro-lenses and micro-optics products. At the same time as announcing the sale of its Swiss subsidiary Süss MicroOptics, the Management Board once again adjusted its profit margin forecast. Exactly two weeks ago, the management had set lower targets for 2023. On the stock market, the news on Wednesday therefore brought joy to shareholders. Süss-Microtec shares rose by around 16.5 percent in afternoon trading.

This boost has still not compensated for the recent slump in the share price at the end of October. Two weeks ago, the Board of Directors led by CEO Burkhardt Frick once again revised its targets downwards after weak business had once again thwarted the annual plans. Since the turn of the year, however, one share has already cost around a third more. With an investment horizon of two years, investors can look forward to an increase of around 60 percent. One trader saw the planned sale as positive, as business had recently been under pressure.

As the SDax-listed company announced on Wednesday in Garching near Munich, the division is to be sold to the Chinese Focuslight Technologies and spun off as a discontinued operation with retroactive effect from September 30.

Without MicroOptics, turnover in 2023 should now be between 280 and 320 million euros. Including the division, the Executive Board most recently had 300 to 340 million euros on the table after a good 299 million euros in the previous year. Earnings before interest and taxes (EBIT margin) are expected to account for 7 to 11 percent of revenue this year. As recently as the end of October, the management had cut the margin target to 4 to 8 percent.

According to the information provided, the transaction volume of the upcoming sale amounts to EUR 75.5 million and includes all shares in the subsidiary as well as the repayment of financial liabilities. The Management Board expects the transaction to be completed in the first quarter of the new year - it is expected to generate a positive special effect before taxes of 40 to 45 million euros./ngu/tav/he