Interim report January-June 2018
Interim report January-June 2018 Strong order growth “Mycronic performs well, as we simultaneously invest in continued growth. We delivered particularly strong order growth during the year’s second quarter, and we have a good base of planned deliveries from our order backlog to reach net sales at a level of SEK 3.5 billion, excluding acquisitions, for the year. During the first half-year, we executed 3 planned deliveries of mask writers, compared to 7 deliveries last year. We have also taken another important step in line with our strategy through the acquisition of American MRSI Systems in the second quarter,” says Lena Olving, President and CEO. Second quarter · The order intake increased 86 percent to SEK 870 (469) million · Net sales was SEK 882 (905) million, a decrease of 3 percent calculated in SEK and in constant exchange rates · The underlying EBIT was SEK 265 (326) million, a decline of 19 percent. The underlying EBIT margin was 30 percent · EBIT amounted to SEK 238 (315) million, a decrease of 24 percent. The EBIT margin was 27 percent · Earnings per share amounted to SEK 1.77 (2.46) January-June · The order intake increased 36 percent to SEK 1,526 (1,121) million · Net sales increased 3 percent to SEK 1,633 (1,583) million and by 5 percent when calculated using constant exchange rates · The underlying EBIT was SEK 481 (533) million, a decrease of 10 percent. The underlying EBIT margin was 29 percent · EBIT amounted to SEK 434 (472) million, a decrease of 8 percent. The EBIT margin was 27 percent · Earnings per share amounted to SEK 3.22 (3.60) Outlook 2018 The Board's assessment remains that consolidated net sales for 2018 will be at a level of SEK 3,500 million, with the clarification that this excludes acquisitions already made in 2018 as well as possible additional acquisitions during the remainder of 2018.
CEO comments
Mycronic performs well, as we simultaneously invest in continued growth. We delivered particularly strong order growth during the year’s second quarter, and we have a good base of planned deliveries from our order backlog to reach a net sales level of SEK 3.5 billion, excluding acquisitions, for the year. During the first half-year, we executed 3 planned deliveries of mask writers, compared to 7 deliveries last year. We have also taken another important step in line with our strategy through the acquisition of American MRSI Systems in the second quarter.
Leading product development together with our acquisition strategy ensures that we continually enhance our offering, which places us in an ever better position. The acquisitions of recent years have been successful and my expectation is that MRSI will also contribute to Mycronic's financial development and to strengthening our competence and our offering in a variety of application areas.
During the quarter we introduced the FPS8100, a mask writer focused on meeting the growing demand for photomasks for manufacture of fine metal masks within the broader multi-purpose segment. We are already the market leader in this segment and this introduction further consolidates our position.
We demonstrated strong order growth of 86 percent for the quarter and 36 percent for the first half-year. Growth was driven primarily by business area Assembly Solutions, which performed well. It is gratifying that several of our acquisitions contributed substantially to the growth. During the quarter, we secured an order within business area Pattern Generators for a replacement system based on the Prexision-8.
Assembly Solutions demonstrated solid net sales growth for both the quarter and the first half-year, despite the continuing supply disruptions originating with subcontractors during the second quarter. The business area is investing in product development and marketing which together with acquisition-related costs results in EBIT not developing in line with net sales.
Pattern Generators continue to show robust growth with an EBIT margin that improved over the previous year’s even though the business area's deliveries during the corresponding periods last year were higher. Fluctuations between quarters are natural for the business area, which is why the trend should be viewed in the longer term. Consolidated growth was 3 percent for the first half-year and declined 3 percent for the quarter, which is attributable to a challenging comparison with last year, together with lower volumes within Pattern Generators, especially during the second quarter.
Demand in the market segments where we have made a strategic choice to be active developed well, and the expectation is for good growth also in the future. Both Assembly Solutions and Pattern Generators have well-stocked orderbooks that constitute a good basis for deliveries for the remainder of the year. I am confident that we will achieve net sales in the area of SEK 3.5 billion, excluding acquisitions, for full-year 2018. At the same time, we continue to support our customers by developing the best and most effective solutions for their businesses, even as we invest in our own organization and its development to ensure profitable growth in the future.
Lena Olving, President and CEO
The information in this report is published in accordance with the EU Market Abuse Regulation and the Swedish Securities Act. The information was submitted for publication, through the contact persons stated below, on July 13, 2018, at 8 am.
Contact persons at Mycronic:
Lena Olving
CEO and President
+46 8 638 52 00
lena.olving@mycronic.com
Torbjörn Wingårdh
CFO
+46 8 638 52 00
torbjorn.wingardh@mycronic.com
Tobias Bülow
Director IR & Corporate Communications
+46 734 018 216
tobias.bulow@mycronic.com