DGAP-News: Siltronic AG / Key word(s): Quarterly / Interim Statement/9-month
figures
Siltronic AG: Siltronic with good performance in the third quarter of 2016
27.10.2016 / 07:01
The issuer is solely responsible for the content of this announcement.
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Press release
Siltronic AG
Hanns-Seidel-Platz 4
81737 Munich
Germany
www.siltronic.com
Siltronic with good performance in the third quarter of 2016
- At EUR 237.0 million, sales were up by over 3 percent on the previous
quarter (EUR 229.6 million) and on the third quarter of 2015 (EUR 230.6
million)
- EBITDA amounted to EUR 36.9 million, slightly higher than in the previous
quarter (EUR 35.1 million) and 26 percent higher than in the third quarter
of 2015 (EUR 29.3 million)
- Negative impact of exchange rate effects from currency hedging much lower
in 2016 than in 2015
- Forecast for sales growth in 2016 slightly increased
Munich, Germany, October 27, 2016 - Siltronic AG, one of the world's
leading manufacturers of hyperpure silicon wafers, is satisfied overall
with its business performance in the third quarter of 2016.
"In recent weeks, the market environment in the semiconductor industry has
been very positive. Our sales in the third quarter of 2016 increased
compared with both the previous quarter and the third quarter of 2015. Our
200mm and 300mm wafer lines were fully loaded in the third quarter. We had
to reduce our inventories in order to keep up with demand and even had to
turn down some orders from customers. Average selling prices were stable
compared with the second quarter. In the fourth quarter, we expect stable
prices and only a slight weakening of demand at the utmost. Overall,
however, average selling prices remain below the prior-year level. Where
possible under the contractual arrangements, we have begun to notify our
customers of planned price increases in the first quarter of 2017," said
Dr. Christoph von Plotho, CEO of Siltronic AG.
In the third quarter of 2016, sales amounted to EUR 237.0 million, up by 3
percent on the second quarter of 2016 (EUR 229.6 million) and on the third
quarter of 2015 (EUR 230.6 million). Sales for the first nine months of
2016 came to EUR 687.1 million, which was down by 4 percent on the
comparative period of 2015 (EUR 716.0 million).
In the period January to September 2016, cost of sales totaled EUR 568.9
million (Q1-Q3 2015: EUR 584.8 million). This means that cost of sales per
unit of wafer area have declined compared with the first three quarters of
last year, when a comparable total wafer area was produced.
The drop in average selling prices compared with the first nine months of
2015 was reflected in gross profit, which stood at EUR 118.2 million in the
first nine months of 2016 (Q1-Q3 2015: EUR 131.2 million). In the third
quarter, Siltronic generated a gross profit of EUR 45.3 million, which was
up by 15 percent on the second quarter (EUR 39.3 million). Compared with
the third quarter of 2015 (EUR 45.0 million), gross profit rose by 1
percent. The gross margin was 19.1 percent in the quarter under review and
thus on a par with the corresponding quarter of 2015. In the second
quarter, the gross margin had been just 17.1 percent.
Other operating income and expense have continued to be influenced by
exchange rate effects in 2016, particularly due to currency hedging. As
expected, however, the impact has been much lower than in 2015. The net
loss from exchange rate effects had been EUR 35.2 million in the first nine
months of 2015, whereas it was just EUR 19.4 million in the corresponding
period of this year.
At EUR 36.9 million and with an EBITDA margin of 15.6 percent, EBITDA was
higher than in the previous quarter (Q2 2016: EUR 35.1 million, 15.3
percent) and well above the figure for the third quarter of 2015 (Q3 2015:
EUR 29.3 million, 12.7 percent). In the nine-month period, Siltronic
reported EBITDA of EUR 95.5 million this year compared with EUR 100.8
million in 2015. The EBITDA margin of 13.9 percent was on a par with the
prior-year period (Q1-Q3 2015: 14.1 percent).
Without the effects from currency hedging, EBITDA for the third quarter of
2016 would have been EUR 43.9 million with an EBITDA margin of 18.5 percent
(Q3 2015: EUR 44.8 million, 19.4 percent). For the nine-month period,
EBITDA would have been EUR 114.9 million (Q1-Q3 2015: EUR 136.0 million)
with an EBITDA margin of 16.7 percent (Q1-Q3 2015: 19.0 percent).
In the third quarter of 2016, EBIT was positive at EUR 6.7 million and thus
slightly higher than in the second quarter (EUR 6.0 million). EBIT improved
substantially compared with the third quarter of 2015 (EUR 0.3 million). In
the first nine months of 2016, EBIT totaled EUR 7.0 million (Q1-Q3 2015:
EUR 8.8 million).
ROCE (return on capital employed) was positive at 1.3 percent in the first
three quarters of 2016. It stood at 3.6 percent in the third quarter,
compared with 3.2 percent in the second quarter.
The financial result was adversely affected, in particular, by interest
expense on pension provisions, and amounted to EUR -8.7 million in the
first nine months of 2016 (Q1-Q3 2015: EUR -8.3 million). In the third
quarter of 2016, the financial result of EUR -2.5 million was at a similar
level to the previous quarter (EUR -2.4 million).
Income taxes came to EUR 5.1 million in the first three quarters of 2016,
equating to a sharp year-on-year decline (Q1-Q3 2015: EUR 11.7 million).
The net result for the period improved significantly to reach a net profit
of EUR 3.9 million in the third quarter, which was higher than the second-
quarter profit of EUR 0.9 million. In the third quarter of 2015, there had
been a net loss for the period of EUR 6.2 million. For the first nine
months of 2016, the net loss was EUR 6.8 million, compared with a net loss
of EUR 11.2 million in the corresponding period of 2015.
Earnings per share stood at EUR 0.16 in the third quarter of 2016 (Q2 2016:
EUR 0.07). In the third quarter of 2015, earnings per share had been
negative at minus EUR 0.15.
"In a market environment with high rates of capacity utilization, Siltronic
is very well positioned. We invest in our capabilities to ensure that we
remain competitive in the future. Ongoing efforts to reduce our costs and
increase our profitability are helping to boost our profitability," said
von Plotho.
In the first three quarters of 2016, Siltronic invested almost EUR 65
million in property, plant and equipment and in intangible assets. Capital
expenditure serves to strengthen Siltronic's leading technological position
in the wafer market and increase efficiency in production. The further
automation of production sites and the replacement of older equipment with
cutting-edge crystal pullers at the Freiberg site are well on track. The
new crystal-pulling hall in Freiberg was officially inaugurated in
September 2016.
Due to the decline in discount rates in Germany and the United States,
pension provisions had risen sharply in the second quarter of 2016 and
amounted to EUR 472.7 million as of June 30, 2016. Discount rates dropped
even lower in the third quarter of 2016 and, since June 30, 2016, have gone
down from 1.60 percent to 1.38 percent in Germany and from 3.47 percent to
3.43 percent in the United States. This led to an increase in pension
provisions, which reached EUR 495.6 million as of September 30, 2016.
Equity amounted to EUR 297.0 million as of September 30, 2016. This gives
an equity ratio of 29 percent, compared with 31 percent at the end of June
2016 and 48 percent as of December 31, 2015.
Non-current liabilities had risen to EUR 592.4 million as of September 30,
2016 (December 31, 2015: EUR 396.0 million). The main reason was the
discount-rate-related rise in pension provisions following a decrease in
discount rates in both Germany and the United States.
Free cash flow was positive at EUR 9.1 million in the first nine months of
2016, with the third quarter contributing EUR 15.7 million. In the first
three quarters of 2016, free cash flow was influenced by net cash payments
of EUR 77.8 million for capital expenditure on property, plant and
equipment. These were significantly higher than the cash payments of EUR
40.2 million made in the first nine months of 2015.
Because of positive free cash flow, net financial assets rose from EUR
155.9 million as of December 31, 2015 to EUR 165.0 million as of September
30, 2016.
Full-year forecast for 2016 mostly confirmed, with slightly higher sales
and capital expenditure
Siltronic currently assumes that unit sales of wafers will be slightly
higher in 2016 than in 2015. Because of the positive market environment in
the semiconductor industry, the Company expects at the utmost only a small
seasonal dip in demand during the fourth quarter of 2016, along with stable
average selling prices.
Siltronic anticipates a low single-digit percentage decrease in sales
compared with 2015 (forecast in June 2016: low to middle single-digit
percentage range). The EBITDA margin for 2016 is expected to improve
slightly compared with 2015.
In view of the various measures to increase efficiency and improve yields,
which will result in future cost savings, capital expenditure is predicted
to reach approximately EUR 85 million to EUR 90 million (forecast in June
2016: around EUR 80 million). This increase is mainly due to projects
progressing more quickly than expected.
All of the other KPI forecasts are unchanged compared with June 2016.
Siltronic AG - KPI overview
<pre>
in EUR million 2016 2016 2016 2015 2016 2015
Q3 Q2 Q1 Q3 Q1-Q3 Q1-Q3
Sales 237.0 229.6 220. 230.6 687.1 716.0
6
EBITDA 36.9 35.1 23.6 29.3 95.5 100.8
EBITDA margin 15.6% 15.3% 10.7 12.7% 13.9% 14.1%
%
EBIT 6.7 6.0 -5.6 0.3 7.0 8.8
EBIT margin 2.8% 2.6% -2.5 0.1% 1.0% 1.2%
%
Financial result -2.5 -2.4 -3.8 -3.1 -8.7 -8.3
Net result for the period 3.9 0.9 -11. -6.2 -6.8 -11.2
5
Earnings per share (EUR) 0.16 0.07 -0.3 -0.15 -0.12 -0.21
4
Capital expenditure on 22.1 22.4 20.4 27.2 64.9 40.6
property, plant and equipment
and intangible assets
Free cash flow 15.7 0.1 -6.7 1.2 9.1 47.9
in EUR million 30.09.2016 31.12.201
5
Equity 297.0 497.3
Equity ratio 29% 48%
Net financial assets 165.0 155.9
Total assets 1,031.5 1,040.8
Employees 3,789 3,894
</pre>
Conference call for analysts and investors
On October 27, 2016 at 3 p.m. (CEST), the Executive Board of Siltronic AG
will hold a conference call with analysts and investors (only in English).
The call will be broadcast live via the internet as an audio webcast, which
will also subsequently be available on-demand on the website of Siltronic
via the following link: https://www.siltronic.com/int/en/
investor_relations/reports/2016/quarterly_2016_3/
quarterly_report_2016_3.jsp.
The current investor presentation (in English only), quarterly report,
press release, and an Excel file with the most important KPIs are all also
published on Siltronic's website.
Contact:
Petra Müller
Director of Investor Relations & Communications
Tel: +49 (0)89 8564 3133
Email: investor.relations@siltronic.com
Company profile:
Siltronic is one of the world's leading manufacturers of hyperpure silicon
wafers and partner of many leading semiconductor companies. The company has
a network of state-of-the-art production sites in Europe, Asia and the USA.
Siltronic develops and manufactures silicon wafers in diameters of up to
300mm. Silicon wafers are the basis for modern microelectronics and
nanoelectronics. They are key components of e.g. computers, flat-screens,
navigation systems, control systems for the automotive industry and many
other applications.
Important notice
This press release contains forward-looking statements based on assumptions
and estimates of Siltronic's Executive Board. Although we assume the
expectations in these forwardlooking statements are realistic, we cannot
guarantee they will prove to be correct. The assumptions may harbor risks
and uncertainties that may cause the actual figures to differ considerably
from the forward-looking statements. Factors that may cause such
discrepancies include, among other things, changes in the economic and
business environment, variations in exchange and interest rates, the
introduction of competing products, lack of acceptance for new products or
services, and changes in corporate strategy. Siltronic does not plan to
update the forwardlooking statements, nor does it assume the obligation to
do so.
This press release is also available in German. If there are differences
between the two, the German version takes priority. Please note that slight
differences may arise as a result of the use of rounded amounts and
percentages.
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27.10.2016 Dissemination of a Corporate News, transmitted by DGAP - a
service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
The DGAP Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Archive at www.dgap.de
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Language: English
Company: Siltronic AG
Hanns-Seidel-Platz 4
81737 Munich
Germany
Phone: +49 89 8564 3133
Fax: +49 89 8564-3904
E-mail: investor.relations@siltronic.com
Internet: www.siltronic.com
ISIN: DE000WAF3001
WKN: WAF300
Indices: TecDAX
Listed: Regulated Market in Frankfurt (Prime Standard); Regulated
Unofficial Market in Berlin, Dusseldorf, Stuttgart,
Tradegate Exchange
End of News DGAP News Service
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514671 27.10.2016
DGAP-News: Siltronic AG: Siltronic with good performance in the third quarter of 2016
| Source: EQS Group AG