STOCKHOLM – Mycronic reported third quarter net sales decreased 8% year-over-year to SEK 986 million (US$114.7 million). Based on constant exchange rates, net sales decreased 9%.
EBIT declined 69.5% to SEK 106 million. Orders were SEK 1.24 billion, an increase of 68%.
For the first nine months of 2021, net sales increased 16% to SEK 3.3 billion. Based on constant exchange rates, the increase was 21% year-over-year. EBIT rose 23.5% to SEK 845 million, compared to the January to September period in 2020. Orders were SEK 3.4 billion, up 16%.
“During the third quarter, order intake showed a positive trend, with an increase of 68%, while a significantly less advantageous product mix for pattern generators led to reduced sales and EBIT,” said Anders Lindqvist, President and CEO, Mycronic. “We announced an acquisition within High Volume, which strengthens and broadens the division’s product portfolio and enables it to offer its customers more complete and attractive solutions. We also announced a divestment within Global Technologies, which will enable the division to focus on and invest in markets that are strategically more relevant. Both transactions are expected to be completed during the fourth quarter of 2021 or the first quarter of 2022.
“Through the acquisition of Shenzhen Huan Cheng Xin Precision Manufacture, High Volume strengthens and broadens its product portfolio and has the opportunity to offer its customers more complete and attractive solutions. The divestment of Automation Engineering will enable Global Technologies to focus on and invest in markets that are strategically more relevant for Mycronic.
“The shortage of supply of components, raw materials and distribution logistics impacted the divisions to various extents during the quarter. Pattern Generators was not impacted to any significant extent, while High Flex began to notice the effects of component shortages and higher transportation costs. For High Volume, increased delivery costs and higher prices for raw materials and certain components impacted the quarter, although there was no shortage of components. At the end of the quarter, power rationing was introduced in China, which may have a negative impact going forward. Global Technologies was affected by disruption in the supply chain and component shortages, creating challenges for deliveries during the fourth quarter. The situation led to customers postponing purchasing decisions in certain cases.
“As part of Mycronic’s sustainability strategy, an innovation fund for sustainability was established. The purpose of the fund is to finance projects, internal or in collaboration with external partners, that support the transition to a sustainable electronics industry and that connect to Mycronic’s strategic sustainability goals.”
Consolidated net sales for 2021 are expected to be SEK 4.5 billion.
Ed.: SEK 1 = US$0.12