Mycronic Reports 27% Growth in 2Q Net Sales

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Mycronic has posted strong results for the second quarter and first half of the year. In the second quarter, order intake increased by 4% to SEK901 million, and net sales jumped by 27% to SEK1.12 billion.

For January to June, total order intake increased by 6% to SEK1.62 billion, while net sales increased by 36% to SEK 2.225 billion.

“I am pleased to note that sales grew by 27% during the quarter, and it was therefore Mycronic’s strongest quarter ever in terms of sales. Assembly Solutions demonstrated favorable growth in both order intake and net sales and delivered improved EBIT, at the same time as Pattern Generators increased net sales and EBIT, and retained its robust operating margin,” says Anders Lindqvist, president and CEO.

Mycronic’s assessment remains that consolidated net sales for 2019 will be at a level of SEK4 billion, excluding any acquisitions made in 2019.

“After two months as CEO, I am enthusiastically and confidently looking forward to continue developing the company, together with the strong team that has built Mycronic into the company it is today. I am impressed by the capacity for innovation that has contributed to the company’s strong position as a global supplier of world-leading production solutions for electronics and display manufacturing. We have an ability to identify product trends and how these influence future technical solutions, so as to find sub-segments in the electronics industry with faster growth than the industry as a whole. We can then build a strong position in these segments through product development and acquisitions,” says Lindqvist. “It was precisely this product development that enabled us during the quarter to launch the Prexision Lite 8 mask writer, which is a complement to the more advanced Prexision-8 and broadens the range of mask writers to address different customer needs.

“Assembly Solutions demonstrated favorable growth during the quarter in both order intake and net sales and delivered improved EBIT.

“At the end of June, Pattern Generators received an order for two FPS6100 mask writers in the multi-purpose segment. The business area increased both net sales and EBIT, while retaining a robust EBIT margin. Our aftermarket and service offering, which currently accounts for about 30 percent of sales, constitutes a significant and stable source of revenue with healthy profitability. The share of advanced mask writers in Pattern Generators is greater than ever following the system deliveries of recent years to meet the ongoing shift in technology in the display industry. At the same time most customers choose to sign a service agreement to ensure production stability, productivity and a high level of service. For Assembly Solutions, the aftermarket offering constitutes one of the synergies we are striving to realize in our acquired companies, where there is potential to develop the aftermarket and service offering.”