Interim report January-March 2018
Good growth for net sales and EBIT continues
"I'm pleased with the way this year has started. Net sales continued to increase mainly through organic growth, while EBIT increased 25 percent to SEK 196 million. Growth for the quarter reflects Mycronic's capacity to understand and follow technology trends to develop efficient production solutions for our customers," says Lena Olving, President and CEO.
First quarter January-March 2018
- The order intake was on par with the previous year and amounted to SEK 656 (653) million
- Net sales increased 11 percent to SEK 750 (678) million and 17 percent when calculated using constant exchange rates
- EBIT increased 25 percent to SEK 196 (157) million, with an EBIT margin of 26 percent
- The underlying EBIT increased 4 percent to SEK 216 (207) million, with an underlying EBIT margin of 29 percent
- Earnings per share amounted to SEK 1.44 (1.14)
The Board's assessment remains that consolidated net sales will be at a level of SEK 3,500 million in 2018.
Events after the end of the quarter
On 18 April, 2018, business area Pattern Generators launched the FPS8100 for the multi-purpose segment, with improved performance, stability and write speeds, all of which allow for efficient production of photomasks for the manufacture of Fine Metal Masks. On 24 April 2018, an order for a replacement system based on Prexision-8 was received.
After a record-breaking 2017, it is gratifying that 2018 has started so well for Mycronic, with growth of 17 percent excluding currency effects, of which acquisitions accounted for 4 percent.
During the quarter, we continued investing in product development, with an increase in investments within Pattern Generators (PG). In February, Assembly Solutions (AS) launched the SMD Tower 8000 – a new, ultra-compact storage tower with enhanced capacity – at the APEX show in San Diego. On April 18, PG launched the FPS8100 for the multi-purpose segment, which allows for efficient production of photomasks for the manufacture of Fine Metal Masks.
The year began strong for AS, which is reflected in an increase of 41 percent in the order intake compared with the first quarter of 2017. The business area has been positively affected by continued strong demand within surface mounting, as well as from the additional contribution that the last two years of strategic acquisitions are now generating. Net sales increased at a slower pace than the order intake and have been adversely affected by temporary supply disruptions from sub-contractors. Vi TECHNOLOGY's products are now being marketed through all of Mycronic's sales channels. During the quarter, a multiple order in the MYPro product series was received and delivered to Asia, which represents a breakthrough in a new market segment.
PG did not receive any new orders for mask writers in the first quarter, which explains the lower order intake compared to the corresponding period of 2017. Net sales increased 16 percent excluding currency effects. At the end of the quarter, the first Prexision-800 was delivered, which means that our customer Photronics is now first to have the world's most advanced mask writer for production of the most complex photomasks for the display industry.
The CES exhibition took place in Las Vegas in early January. It is the world's largest trade show for new products and future innovations within consumer electronics. My impression is that our efforts within product development, together with our acquisition strategy, places us in a strong position. There was a great deal of focus on displays at the show, where improved quality, larger size, and the fact that they are being used in more products was emphasized. New display technologies are also being developed which could complement AMOLED and LCD in the long-term. Additionally, more and more electronics can be found in demanding, rugged environments that expose products to, for example, moisture, vibration and large temperature variations, which drives the need for better and more sophisticated dispensing solutions to protect the electronics. The amount and complexity of electronics for the automotive industry is also growing rapidly, including more cameras per vehicle. These are all examples of trends that affirm our investments in product development and acquisitions. Understanding and keeping up with new technology trends is an important part of Mycronic's work to develop efficient production solutions for our customers - now and in the future.
Lena Olving, CEO and President
The information in this report is published in accordance with the EU Market Abuse Regulation. The information was submitted for publication through the contact persons listed below on 26 April, 2018 at 8 am.
Contact persons at Mycronic:
President and CEO
+46 8 638 5200
+46 8 638 5200