Mycronic AB (publ), interim report January-September 2016
Nine months of strong order intake - execution of strategy for growth Mycronic demonstrated a strong financial performance during the first nine months of the year. Order intake and net sales increased 44 and 9 percent respectively. The operating margin reached 22 percent. Demand for the Group’s products is favorable, thanks to product launches which broadened the Group’s addressable market. Mycronic also has major focus on investments for future growth, both through initiatives in product development and through acquisitions.
Third quarter July-September 2016
- Order intake was SEK 367 (559) million
- Net sales were SEK 497 (605) million
- EBIT was SEK 148 (262) million
- Earnings per share was SEK 1.17 (2.33)
Period January-September 2016
- Order intake reached SEK 1,936 (1,341) million
- Net sales reached SEK 1,303 (1,194) million
- EBIT was SEK 286 (289) million
- Earnings per share was SEK 2.25 (2.52)
Outlook
The Board’s assessment remains, that net sales in 2016 will be at the level of SEK 1,900 million, excluding effects from acquisitions.
CEO comments
The first nine months demonstrated good demand for Mycronic’s production solutions. Order intake increased 44 percent compared with the same period 2015 and net sales increased 9 percent. We are making significant investments in product development to maintain our competitive edge. And we report an EBIT of SEK 286 million, or a margin of 22 percent, for the first nine months. The order backlog reached SEK 1,699 million.
The global market for SMT equipment experienced a negative trend in 2015, while Mycronic maintained volumes and margins. In 2016, the slowdown has affected business area SMT, primarily during the first half year. The trend in the third quarter was positive with an increase in the order intake and net sales com-pared with the third quarter 2015.
Mycronic has received orders for nine mask writers thus far in 2016. The newly launched the Prexision-800, which ensures effective production of the most complex photomasks for the smart 4K phones and advanced AMOLED displays of the future. The replacement offering provides customers with a solution to secure long-term high productivity in photomask manufacturing.
Investments in product development within SMT equipment continue, in line with the strategy. We have launched new products and in this way broadened our product offering, which creates opportunities for growth. The introduction of an updated MY600 for dispensing of several different mounting fluids targets new segments on the SMT market, both from geographic and product perspectives. The introduction has been well received on the market.
To achieve long-term, sustainable growth Mycronic’s strategy includes M&As. During 2016, we acquired the German company RoyoTech, which developed the strategic storage solutions that are an integrated part of Mycronic’s offering for the smart factory. In August, an agreement was signed on the acquisition of Axxon, a leading actor on the dispensing market in China. The acquisition is strategically important as Axxon’s technology and market position complement our own position, which make us a leading global actor.
Mycronic is continuing to execute the growth strategy at a high pace, while at the same time delivering good results.
Lena Olving, CEO and President
Contacts at Mycronic:
Lena Olving
CEO and President
+46 8 - 638 52 00
lena.olving@mycronic.com
Per Ekstedt
CFO
+46 8 - 638 52 00
per.ekstedt@mycronic.com
About Mycronic
Mycronic AB is a high-tech Swedish company engaged in developing, manufacturing and marketing of production solutions to the electronics industry. Mycronic headquarters are located in Täby, north of Stockholm and the Group has subsidiaries in China, France, Germany, Japan, Singapore, South Korea, Taiwan, the Netherlands, United Kingdom and the US. For more information, see the company website www.mycronic.com.
Mycronic AB (publ) is listed on NASDAQ Stockholm, Mid Cap: MYCR.
This interim report is a translation of the Swedish version. In the event of any differences between this translation and the Swedish original version, the Swedish version shall have precedence.