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.
