Mycronic Posts 3% Net Sales Growth in H1 2018

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Mycronic has released its interim report for the first half and second quarter of the year.

For the second quarter period, order intake increased by 86% to SEK 870 million, while net sales reached SEK 882 million, a decrease of 3% calculated in SEK and in constant exchange rates.

Total order intake for January to June 2018 increased by 36% to SEK 1,526 million, and net sales went up by 3% to SEK 1,633 million (the increase is 5% when calculated using constant exchange rates).

“Mycronic performs well, as we simultaneously invest in continued growth. We delivered particularly strong order growth during the year’s second quarter, and we have a good base of planned deliveries from our order backlog to reach net sales at a level of SEK 3.5 billion, excluding acquisitions, for the year,” says Lena Olving, President and CEO. “During the first half-year, we executed three planned deliveries of mask writers, compared to seven deliveries last year. We have also taken another important step in line with our strategy through the acquisition of American MRSI Systems in the second quarter.

“Leading product development together with our acquisition strategy ensures that we continually enhance our offering, which places us in an ever-better position. The acquisitions of recent years have been successful, and my expectation is that MRSI will also contribute to Mycronic’s financial development and to strengthening our competence and our offering in a variety of application areas.

“We demonstrated strong order growth of 86 percent for the quarter and 36 percent for the first half-year. Growth was driven primarily by business area Assembly Solutions, which performed well. It is gratifying that several of our acquisitions contributed substantially to the growth. During the quarter, we secured an order within business area Pattern Generators for a replacement system based on the Prexision-8. Assembly Solutions demonstrated solid net sales growth for both the quarter and the first half-year, despite the continuing supply disruptions originating with subcontractors during the second quarter. The business area is investing in product development and marketing which together with acquisition-related costs results in EBIT not developing in line with net sales.”

The board’s assessment remains that consolidated net sales for 2018 will be at a level of SEK 3.5 billion, with the clarification that this excludes acquisitions already made in 2018 as well as possible additional acquisitions during the remainder of 2018.