Mycronic Releases Q4 and FY 2016 Results

Estimated reading time: 2 minutes

Mycronic reports a record year in 2016 with acquired companies Axxon and AEi included from the fourth quarter. Order intake and net sales rose 13 and 28 percent respectively. The EBIT margin reached 30 percent. Demand for the Group’s products is favorable thanks to product launches, several of which broaden the addressable market. Major investments were made in product development for future growth. The acquisitions complement and broaden the offering on several segments within the lectronics industry.

Fourth quarter October-December 2016

• Order intake reached SEK 518 (838) million
• Net sales reached till SEK 1,016 (621) million
• EBIT was SEK 405 (251) million
• Profit per share was SEK 3.12 (1.99)

Full-year January-December 2016 

• Order intake reached SEK 2,455 (2,179) million
• Net sales reached SEK 2,319 (1 815) million
• EBIT was SEK 691 (540) million
• Profit per share was SEK 5.38 (4.52)
• Dividend proposal to AGM of SEK 2.00 (1.50) per share, according to dividend policy.

Outlook 2017

It is the Board’s assessment that net sales in 2017 will be at the level SEK 2,800 million.

CEO comments

In 2016, we lived up to high expectations. We can now report record high order intake, net sales and EBIT for the Mycronic Group, which include contributions from acquisitions as of respective acquisition dates.

We continued to deliver production solutions to our customers to make their production efficient. The global market for surface mount equipment did not develop as we had hoped this past year, but it strenghtened during the latter part of the year. It was a strong year for mask writers with orders for nine systems and sales of eight systems. At the same time, we made major initiatives within product development to further strengthen our competitive edge. Expenses for these investments are substantial, SEK 342 million, but absolutely crucial for future growth. 

EBIT for 2016 was SEK 691 million, and the EBIT margin was 30 percent - fantastic year.

In three years, we more than doubled net sales and the EBIT margin has been far above 10 percent. So I am proud to say that we reached our financial goals faster than we thought possible when we established them in 2014. Thus the Board and the corporate management team present new financial goals; we intend to double net sales once again while maintaining a good profitability.

During 2016, we made three important acquisitions:

The German company RoyoTech ensures our access to a strategically important product, the SMD Tower, a storage solution for electronic components and a cornerstone in the Mycronic 4.0 concept for managing complex produc-tion environments in modern electronics manufacturing.

Through the Chinese company Axxon, we complement our unique jet printing business with a leading actor on the significantly larger dispensing market. Together we are now one of the five largest actors in the world.

Finally, through American AEi, we broaden our operations. AEi offers equipment for mounting of camera modules for the advanced driver support systems which are becoming increasingly common in modern cars. This is an adjacent market segment that is demonstrating rapid growth and where there is good potential for profitability.

These acquisitions broaden our product offering and we can address a greater part of the electronics industry, creating good opportunities for future growth. To demonstrate the connection to a significantly larger part of the electronics industry we are now renaming business area SMT to Assembly Solutions.

About Mycronic

Mycronic AB is a Swedish high-tech company engaged in the development, manufacture and marketing of production equipment with high precision and flexibility requirements for 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, the Netherlands, United Kingdom and the United States. For more information see our website.