Year-end report 2017
2017 - order intake, net sales and earnings on record levels
Mycronic reports a record year for 2017 with an order intake of SEK 3,567 million, net sales of SEK 3,001 million and EBIT in the amount of SEK 848 million. The EBIT margin was 28 percent, with an underlying EBIT margin of 32 percent. "Business area Pattern Generators put in a strong year, while business area Assembly Solutions, with the acquisition of Vi TECHNOLOGY, can now offer a complete production line", says Lena Olving, CEO and President.
Fourth quarter October-December 2017
- The order intake was SEK 572 (518) million
- Net sales amounted to SEK 931 (1,016) million
- EBIT amounted to SEK 312 (405) million
- Underlying EBIT was SEK 349 (448) million
- Earnings per share amounted to SEK 2.37 (3.12)
Full-year January-December 2017
- The order intake was SEK 3,567 (2,455) million
- Net sales amounted to SEK 3,001 (2,319) million
- EBIT amounted to SEK 848 (691) million
- Underlying EBIT was SEK 955 (735) million
- Earnings per share amounted to SEK 6.40 (5.38)
- The Board proposes to the AGM a dividend of SEK 2.50 (2.00) per share, in accordance with the dividend policy.
The assessment of the Board of Directors is that consolidated net sales in 2018 will be at a level of SEK 3,500 million.
Comments from the CEO
It is with pride that I can present a record year for Mycronic. The order intake, net sales and earnings all reached new record levels and with the year ending strong, we have surpassed the estimates we announced at the beginning of 2017.
Net sales for the fourth quarter were slightly lower than for the same period in 2016, when Pattern Generators (PG) delivered one advanced system more. For full-year 2017, PG delivered ten systems, compared with eight systems in the previous year, while net sales for Assembly Solutions (AS) increased 60 percent. Consolidated net sales for the full year thus amounted to SEK 3,001 million, which is a milestone.
During 2017, we have been able to continue the push in product development within AS, not least through strong financial results in PG. Product development efforts in AS were in line with those of 2016 and are necessary in order to secure future growth and competitiveness. In addition to this, earnings for AS were charged with acquisition-related costs of SEK 107 million.
The long-term trends favor Mycronic. For AS, these trends are about a more extensive product mix, shorter series and product life cycles, as well as smaller components on increasingly complex circuit boards. With the acquisition of Vi TECHNOLOGY in October 2017, AS gained access to advanced inspection equipment, software and cutting-edge expertise. Our product development efforts within SMT resulted in the launch of the MYPro series in the spring of 2017, with two brand new product platforms, the MY700 and the MY300. Within dispensing, where we are the fourth largest supplier globally, we launched the MYSmart series at Productronica industry fair in November. We have strengthened our position within AS through a complete SMT production solution offering, an offering that meets industry demands and aims at improving our customers’ productivity. Through our acquisitions we now address an equipment market that is 36 percent, or USD 1,200 million larger than previously.
Within PG, the trends encompass a technology shift from LCD to AMOLED for mobile displays, development towards higher resolution, ever larger TV displays, as well as new display applications. All this is driving demand for photo-masks and placing new, higher demands on the photomasks used in production. In response to these trends, the photomask industry invests primarily in capability, i.e. new opportunities. This is favorable for PG, which is also reflected in a full order book for 2018. In addition, today’s photomask market is about five times greater than it was just over ten years ago, so current investments - mainly in new P10 mask writers - do not significantly impact total capacity.
Mycronic is entering 2018 with a strong net cash position and an order backlog of SEK 1,927 million, which gives us an excellent starting point to continue our efforts in marke-ting and product development. In parallel with this activity, we are systematically evaluating possible acquisitions.
Lena Olving, CEO and President
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 listed below on 7 February 2018, at 8 am.
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