Mycronic Says Q3 Net Sales Down 18%
TABY, SWEDEN – Mycronic reported third quarter net sales decreased 18% to SEK 900 million ($93.2 million), or 20% based on constant exchange rates. EBIT was SEK 198 million, a decline of 55%.
Orders increased 52% to SEK 1.24 billion ($128.5 million).
“Order intake increased by 52%, with strong contributions from both Assembly Solutions and Pattern Generators,” said Anders Lindqvist, president and CEO. “The third quarter signaled the launch of Evo, Mycronic’s new control platform, which will form a cornerstone of our mask writers and strengthen our customer offering. After the end of the quarter, SLX was launched, which is Mycronic’s new mask writer for the semiconductor market.”
For the first nine months of 2019, orders increased 22% to SEK 2.9 billion. Net sales increased 15% to SEK 3.12 billion, 9% based on constant exchange rates. EBIT was SEK 920 million, up 6%.
Net sales for 2019 are expected to be SEK 4 billion, excluding any acquisitions made this year.
“I am often asked how Mycronic has been affected by the trade dispute between the US and China, and how the Assembly Solutions business area has been affected by the slowdown in the electronics industry,” said Lindqvist. “In fact, the impact on Mycronic has been limited so far, which is reflected in the 52% increase in order intake during the third quarter. In some cases, the effects in the short term may even be positive, for example when customers in China decide to take back previously outsourced production and therefore need to invest in new production equipment.
“During the quarter, the Dispensing division in Assembly Solutions demonstrated a favorable performance in China and broadened its offering and customer base to new segments by adapting products to satisfy market demand. Net sales in the business area grew by 4% adjusted for currency effects. Assembly Solutions continues to focus on work to improve profitability and achieve an EBIT margin of above 10%.”
Ed.: SEK 1 = US$0.10
