Interim Report January-June 2019

Positive development in both of Mycronic's business areas

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Jul 17, 2019, 02:34 ET

STOCKHOLM, July 17, 2019 /PRNewswire/ -- "I am pleased to note that sales grew 27 percent during the quarter and it was therefore Mycronic's strongest quarter ever in terms of sales. Assembly Solutions demonstrated favorable growth in both order intake and net sales and delivered improved EBIT, at the same time as Pattern Generators increased net sales and EBIT, and retained its robust operating margin," says Anders Lindqvist, President and CEO.

Second quarter

Order intake increased 4 percent to SEK 901 (870) million

Net sales increased 27 percent to SEK 1,120 (882) million and 23 percent based on constant exchange rates

EBIT was SEK 317 (238) million, an increase of 34 percent. The EBIT margin was 28 (27) percent

The underlying EBIT was SEK 332 (265) million, an increase of 25 percent. The underlying EBIT margin was 30 (30) percent

Earnings per share were SEK 2.50 (1.77)

January-June

Order intake increased 6 percent to SEK 1,622 (1,526) million

Net sales increased 36 percent to SEK 2,225 (1,633) million and 29 percent based on constant exchange rates

EBIT was SEK 723 (434) million, an increase of 67 percent. The EBIT margin was 32 (27) percent

The underlying EBIT was SEK 753 (481) million, an increase of 57 percent. The underlying EBIT margin was 34 (29) percent

Earnings per share amounted to SEK 5.70 (3.22)

Outlook 2019

The Board's assessment remains that consolidated net sales for 2019 will be at a level of SEK 4 billion, excluding any acquisitions made in 2019.

Events after the end of the period

An order was received on July 15 for an advanced mask writer from the Prexision series for display applications. The order comprises a Prexision-10, limited to production of photomasks for generation 8.

CEO comments

After two months as CEO, I am enthusiastically and confidently looking forward to continue developing the company, together with the strong team that has built Mycronic into the company it is today. I am impressed by the capacity for innovation that has contributed to the company's strong position as a global supplier of world-leading production solutions for electronics and display manufacturing. We have an ability to identify product trends and how these influence future technical solutions, so as to find sub-segments in the electronics industry with faster growth than the industry as a whole. We can then build a strong position in these segments through product development and acquisitions.

It was precisely this product development that enabled us during the quarter to launch the Prexision Lite 8 mask writer, which is a complement to the more advanced Prexision-8 and broadens the range of mask writers to address different customer needs.

I am pleased to note that sales grew 27 percent during the quarter and it was therefore Mycronic's strongest quarter ever in terms of sales. We have continued to deliver as planned and feel confident with the goal for 2019 to reach net sales of SEK 4 billion, excluding any acquisitions.

Assembly Solutions demonstrated favorable growth during the quarter in both order intake and net sales and delivered improved EBIT.

At the end of June, Pattern Generators received an order for two FPS6100 mask writers in the multi-purpose segment. The business area increased both net sales and EBIT, while retaining a robust EBIT margin.

Our aftermarket and service offering, which currently accounts for about 30 percent of sales, constitutes a significant and stable source of revenue with healthy profitability. The share of advanced mask writers in Pattern Generators is greater than ever following the system deliveries of recent years to meet the ongoing shift in technology in the display industry. At the same time most customers choose to sign a service agreement to ensure production stability, productivity and a high level of service. For Assembly Solutions, the aftermarket offering constitutes one of the synergies we are striving to realize in our acquired companies, where there is potential to develop the aftermarket and service offering.

Mycronic has a solid foundation for continued growth. The global electronics industry is growing and the outlook is favorable for innovative players, such as Mycronic. The company's strategy stands firm and together with customers and other key stakeholders, we will continue to develop unique production solutions. It is exciting to be a part of the future of the electronics industry, where production equipment must meet customer needs for flexibility, quality and stability while also facilitating the transition to more sustainable electronics production.

Anders Lindqvist, President and CEO

Financial information

Mycronic AB (publ) is listed on NASDAQ Stockholm, Mid Cap, MYCR. 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 17, 2019, at 8:00 a.m.

Financial reports and press releases are published in Swedish and English and are available on www.mycronic.com.

For further information, please contacts:

Anders Lindqvist
President and CEO
+46-8-638-52-00
[email protected]

Torbjörn Wingårdh
CFO
+46-8-638-52-00
[email protected]

Sven Chetkovich
Acting Director IR & Corporate Communications
+46-70-558-39-19
[email protected]