Mycronic Doubles Net Sales in 1H 2017

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Mycronic has posted net sales of SEK 1.586 billion for the first half of 2017, up by 97% compared with the same period last year. The underlying EBIT margin was 34%. For the second quarter, Mycronic posted sales of SEK 910 million.

"A half year characterized by continuing growth with profitability, and with significant launches that improve customers' productivity," says Lena Olving, CEO and President.

The Board's assessment remains, that net sales in 2017 will be at the level of SEK 2.8 billion.

"It is gratifying to be able to report today that the first half of 2017 was characterized by good demand for Mycronic's products. Consolidated net sales increased 97%, from both organic growth within Assembly Solutions and Pattern Generators, and from the acquired operations. We can also report continued good profitability. Consoli-dated EBIT for the first half of the year reached 30 percent. EBIT was burdened by acquisition-related costs unrelated to operational activities. These costs will remain for some time, even if they are greatest during the current year. The underlying business, i.e. our operational activities exclud-ing acquisition-related costs, achieved an operating margin of 34%," says Olving. "As we deliver growth with profitability, we are continuing our substantial investments into product development to ensure continued long-term growth.

"During the first half of the year, our efforts resulted in the introduction of the MYPro product series for efficient electronics production. During April and May, we have successfully launched two new machine platforms within the MYPro series, the MY700 and MY300, for dispensing and component mounting. The response and ratings from customers tell us that we are doing the right things as we respond to manufacturers' challenges within advanced electronics production."

According to Olving, Mycronic has also commenced sales of Axxon's products through all of the group's sales channels. "Our combined broad product range offers good possibilities to solve the customers’ needs within many different application areas.We are now the fourth largest supplier of dispensing equipment worldwide."

"Within the display industry, a shift toward a greater pro-portion of AMOLED displays is underway. This causes a temporary loss of production capacity during the recon-struction phase, and development activity decreases. This led to a decline in the photomask market in 2016. We now see that the degree of utilization on mask writers at customer sites is once again on the rise. Both our customers and their customers are showing increased activity. The assess-ment is that production capacity will increase in 2017 as reconstructed production lines are brought into operation. Through dialogue with our customers, we also understand that the proportion of large TV displays is growing, which creates an additional need for equipment for efficient photomask production. Hence, planning is now underway for new, so-called G10 fabs for production of these larger displays," says Olving.

About Mycronic

Mycronic AB is a Swedish high-tech company engaged in the development, manufacture and marketing of production equipment with high precision och flexibility requirements for the electronics industry. Mycronic’s headquartes are located in Täby, north of Stockholm and the Group has subsidiaries in China, France, Germany, Japan, Singapore, South Korea, the Netherlands, Taiwan, United Kingdom and the United States. For more information, visit www.mycronic.com.