Mycronic Reports Interim Report January-September 2022

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Mycronic has released its interim report for January-September 2022. 

Third quarter

• Order intake amounted to SEK 1,609 (1,242) million, an increase of 30 percent
• Net sales increased 23 percent to SEK 1,214 (986) million. Based on constant exchange rates, net sales increased 10 percent
• EBIT amounted to SEK 203 (106) million and the EBIT margin was 17 (11) percent
• Earnings per share were SEK 1.56 (0.82)

January–September

• Order intake amounted to SEK 4,253 (3,272) million, an increase of 30 percent
• Net sales increased 8 percent to SEK 3,622 (3,341) million. Based on constant exchange rates, net sales decreased 1 percent
• EBIT amounted to SEK 632 (845) million and the EBIT margin was 17 (25) percent
• Earnings per share were SEK 5.03 (6.66)

“Order intake increased during the third quarter by 30 percent compared with a relatively weak corresponding quarter in the preceding year, mainly driven by a strong performance by Pattern Generators, and supported by positive currency effects. Net sales increased 23 percent, with good growth in High Flex and High Volume, here again supported by positive currency effects. EBIT increased to SEK 203 million with an EBIT margin of 17 percent and I am pleased to note that all divisions reported double-digit EBIT margins for the second consecutive quarter,” says Anders Lindqvist, President and CEO.

Outlook 2022

It is the Board of Directors’ revised opinion that consolidated net sales for 2022 will be at a level of SEK 5 billion at prevailing exchange rates*. Due to the product mix of announced orders in Pattern Generators with deliveries in 2022, the Group’s EBIT margin is, as before, expected to be slightly above the previous long-term financial target of >15 percent.

*The previous opinion was of net sales of SEK 5 billion, based on exchange rates at the end of 2021.

Anders Lindqvist, President and CEO, comments:

"Order intake increased during the third quarter by 30 percent compared with a relatively weak corresponding quarter in the preceding year, mainly driven by a strong performance by Pattern Generators, and supported by positive currency effects. Net sales increased 23 percent, with good growth in High Flex and High Volume, here again supported by positive currency effects. EBIT increased to SEK 203 million with an EBIT margin of 17 percent and I am pleased to note that all divisions reported double-digit EBIT margins for the second consecutive quarter.

"In conjunction with Mycronic’s Capital Markets Day in September, we presented new, ambitious growth and profitability targets. We also highlighted the previously communicated climate target and presented it together with the financial targets. By 2030, we will double net sales and EBIT while halving our own CO2 emissions. The Group’s EBIT margin is to be above 20 percent, the EBIT margin for individual divisions is to be above 10 percent and we undertake to set new climate targets in accordance with Science Based Targets.

"At the end of September, we renewed a revolving credit facility of SEK 1,000 million until September 2026 to secure flexibility in connection with business opportunities. In total, we continue to have access to SEK 2,000 million in bank financing, though at present the credit facility is not utilized.

"Pattern Generators received its first order for a Prexision 8 Entry Evo during the quarter. This is a new model in the Prexision Evo series of mask writers to write photomasks for displays up to mask size G8. Third quarter order intake was strong and the division received orders for seven mask writers: one Prexision 8 Entry Evo, two Prexision Lite 8 Evos and four SLXs. At the same time, one SLX was delivered.

"Demand remained at a healthy level for High Flex during the third quarter, despite an uncertain macroeconomic environment. Europe has continued to show positive development, with particularly strong demand noted in Italy. North America also performed well. High Flex’s sales and service center in Mexico is expected to be operational in the fourth quarter.

"For High Volume, suppliers to the electric car industry witnessed high demand and continued to invest. Consumer electronics remained weak and the division’s customers in this industry are thus postponing new investments.

"For Global Technologies, customers’ investments in China continued in substrates, which meant that the division’s electrical test equipment for substrates continued to demonstrate strong performance. In parallel, demand for test equipment for PCBs was stable, with the decline in investments in consumer electronics offset by demand driven by high layer count PCBs. Demand in die bonding from China in telecom and datacom developed negatively.

"During the quarter, our die bonding operations within Global Technologies struggled with component shortages, while the other divisions were largely successful in delivering as planned. The high energy prices have not had a material direct impact on cost.

"The revised opinion of the Board of Directors and myself is that consolidated net sales for 2022 remain at a level of SEK 5 billion, but based on prevailing exchange rates, where a softer SEK has compensated for weaker demand in China."