Interim report January-March 2022: Mycronic AB
STOCKHOLM, April 21, 2022 /PRNewswire/ —
- Order intake amounted to SEK1,441 (1,027) million, an increase of 40%
- Net sales decreased 12 percent to SEK1,135 (1,291) million. Based on constant exchange rates, net sales decreased 19%
- EBIT amounts to SEK 206 (498) million and the EBIT margin was 18 (39) percent
- Earnings per share were SEK1.69 (3.99)
“We had a good start to the year, with an increase in order intake of 40%, where all divisions contributed to the development. Net sales decreased by 12% in the quarter, which was attributable to the decline in Pattern Generators’ net sales said that this change in the Group’s sales mix, with a decline in Pattern Generators’ share of total net sales, will characterize the year. EBIT fell to 206 million Swedish crowns, with an EBIT margin of 18%. In February, we finalized the sale of AEi, which resulted in a capital gain and had a positive impact on EBIT of 25 million Swedish crowns. The Group’s direct exposure to the war in Ukraine is limited. We don’t have staff in Russia, Belarus or Ukraine and only marginal sales to these countries. Likewise, we do not currently believe that a possible shortage of inert gases from Ukraine will have a direct impact on pattern generators,” says Anders LindqvistPresident and CEO.
The Board of Directors remains of the opinion that the 2022 consolidated turnover will be at a level of 5 billion Swedish crownsbased on exchange rates at the end of 2021. Due to the product mix of orders announced in model generators with deliveries in 2022, the group’s EBIT margin is expected to be slightly above the long-term financial objective of > 15%.
We had a good start to the year, with an increase in order intake of 40%, where all the divisions contributed to the development. Net sales decreased 12% in the quarter, due to lower Pattern Generators net sales. We have previously indicated that this change in the composition of the Group’s sales, with a decline in the share of Pattern Generators in total net sales, will characterize the year. During the first quarter, this means that EBIT fell to 206 million Swedish crowns, with an EBIT margin of 18%. In February, we finalized the sale of AEi, which resulted in a capital gain and had a positive impact on EBIT of 25 million Swedish crowns. The Group’s direct exposure to the war in Ukraine is limited. We don’t have staff in Russia, Belarus or Ukraine and only marginal sales to these countries. Likewise, we do not currently believe that a possible shortage of inert gases from Ukraine will have a direct impact on pattern generators.
A still healthy level of activity was noted for the semiconductor photomask market. Since launching in 2019, Pattern Generators has delivered ten SLX systems, which have been well received by customers. The SLX comes with an energy-efficient solid-state laser that significantly reduces environmental impact compared to the majority of the installed base. Signs of positive development also appeared in the market for photomasks for displays. During the quarter, Pattern Generators received orders for three SLX solid-state mask writers and one Prexision Lite 8 Evo display mask writer. At the same time, the division delivered two SLXs during the quarter, compared to a Prexision 800 Evo, a Prexision Lite 8 Evo and an SLX during the corresponding period of the previous year.
During the first quarter of the year, the High Flex market remained buoyant and the division’s customers have well-filled order books. Positive market momentum in jet printing and pick-and-place solutions contributed to strong order intake in the quarter.
The electronics industry in China experienced a stable evolution during the first quarter, despite the uncertainties related to Covid-19. High Volume has engaged in close dialogue on future projects with existing customers in the automotive and consumer electronics industries. In mid-March, the authorities imposed a week of confinement on Shenzhen, China, where High Volume has its base. The impact on the division was limited.
Regarding Global Technologies, the telecommunications and data communications market in the field of chip bonding continued its good performance, mainly driven by investments in data centers. At the same time, the aerospace and defense industry showed signs of good growth for the future. The electrical test market showed continued strength, driven by strong demand for PCBs and substrates and a strong recovery in Europe.
Despite an ongoing shortage of production personnel, pandemic-related component sourcing and distribution logistics challenges, we were largely successful in delivering production equipment to our customers according to plan during the trimester.
We are in a strong position to pursue sustainable and profitable growth and have a clear growth strategy characterized by a combination of organic growth and acquisitions. We are actively looking for attractive areas to complete and expand our offer through carefully selected acquisitions.
For 2022, my assessment and that of the Board of Directors remains that Mycronic’s net sales will be at a level of 5 billion Swedish crowns based on end-2021 exchange rates.
I look forward to the rest of the year with confidence.
Anders LindqvistPresident and CEO
Mycronic AB (publ) is listed on Nasdaq Stockholm, Large Cap. The information in this report is published in accordance with the EU Market Abuse Regulation and Swedish Securities Law. The information has been submitted for publication, through the contact persons listed below at 8:00 a.m. CEST on April 21, 2022.
Financial reports and press releases are published in Swedish and English and are available at www.mycronic.com.
This report has not been reviewed by the Company’s auditor.
Mycronic will hold a conference call at 10:00 a.m. EST on April 21, 2022with the President and CEO Anders Lindqvist and CFO & Sr VP Corporate Development Pierre Brorsson. To participate in the presentation, please dial one of the numbers or watch via the web link below.
Sweden: +46 8 566 427 03
UK: +44 333 300 9261
United States: +1 631 913 1422, PIN: 31935932#
FOR MORE INFORMATION PLEASE CONTACT
President and CEO
+46 8 638 52 00
Chief Financial Officer and Senior Vice President of Corporate Development
+46 8 638 52 00
Investor Relations Director
+46 70 558 39 19
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SOURCE Mycronic AB