Tecan issues H2 2014 trading update

Tecan Group AG / Tecan issues H2 2014 trading update . Processed and transmitted by NASDAQ OMX Corporate Solutions. The issuer is solely responsible for the content of this announcement.

• Good sales growth trend in the second half of 2014: mid single-digit organic growth in local currencies expected

Strong recovery in the Partnering Business with anticipated double-digit sales growth in local currencies

IBL International integration going well; expected to exceed sales outlook

Organic sales outlook for financial year 2014 adjusted to low single-digit percentage growth in local currencies

Confirming target for total Group operating profitability

Reconfirming strongly accelerated growth in 2015

Männedorf, Switzerland, December 1, 2014 - The Tecan Group (SIX Swiss Exchange: TECN) today issued a trading update for the second half of 2014.

Tecan CEO David Martyr commented: "After a difficult first half with declining sales and our Partnering Business suffering from delays in order placement from two large customer accounts, it is good to see the growth trend in the second half is supported by the Partnering Business recouping the shortfall from the beginning of the year. We are now on a trajectory we had anticipated for the full year and with the planned ramping up of major Partnering Business projects we expect strongly accelerated growth in 2015."

Tecan sees a good trend in sales and expects to generate organic sales growth in the mid single-digit percentage range in the second half of 2014. After recording declining sales in the first half of the year, the Partnering Business recovered strongly and is anticipated to post double-digit sales growth in the second half. The Life Sciences Business, as already reported for the first half-year, has been progressing well in the established markets in North America and Europe compared to 2013. However, as reported before, the business environment in China remains challenging. Although sales in the region have been improving in the second half compared to the beginning of the year, a return to normal trends in China is only expected in the course of 2015.

The integration of IBL International, included in the consolidated financial statements of the Tecan Group since August 1, 2014, is progressing well and sales for the five months period are expected to exceed the initial outlook of a mid single-digit million Swiss franc sales contribution.

Momentum of order flow has been particularly strong for the Partnering Business in recent weeks. However, not all orders can be converted to sales in fiscal year 2014 due to the late timing of some of those orders. Therefore, the organic sales outlook for the financial year 2014 is adjusted to low single-digit percentage growth in local currencies compared to in the mid single-digit percentage range previously communicated.