Mycronic publishes an interim report from January to June 2022

Mycronic publishes an interim report from January to June 2022

Mycronic announces its interim results from January to June 2022.

second quarter

  • Order intake was SEK 1,203 (1,002) million, an increase of 20%
  • Net sales increased by 20% to SEK 1,273 (1,064) million. Based on constant exchange rates, net sales increased 10%
  • EBIT was SEK 224 (241) million and EBIT margin was 18 (23) percent
  • Earnings per share were SEK 1.79 (1.84)

January June

  • Order intake was SEK 2,644 (2,030) million, an increase of 30%
  • Net sales increased by 2% to SEK 2,408 (2,355) million. Based on constant exchange rates, net sales decreased 6%
  • EBIT was SEK 429 (739) million and EBIT margin was 18 (31) percent
  • Earnings per share were SEK 3.47 (5.84)

“Order intake and net sales were relatively stable in local currencies during the second quarter. Supported by positive currency effects and acquisitions, both were up 20% compared to the same quarter last year. High Flex, High Volume and Global Technologies reported increases in net sales, while Pattern Generators net sales declined. EBIT was SEK 224 million with an EBIT margin of 18%, where all divisions posted double-digit EBIT margins. The decrease compared to last year was mainly due to the previously communicated change in the Group’s sales mix, resulting in a decrease in Pattern Generators’ share of total net sales, but also to the fact that the second quarter of last year was a very difficult comparison. period of high volume,” said Anders Lindqvist, President and CEO.

Outlook 2022

The Board of Directors remains of the view that consolidated net sales for 2022 will be at a level of SEK 5 billion, based on exchange rates at the end of 2021. Due to the product mix of orders announced in Pattern Generators with deliveries in 2022, the Group’s EBIT margin is expected to be slightly above the long-term financial target of >15%.

Anders Lindqvist, President and CEO, comments

Order intake and net sales were relatively stable in local currencies during the second quarter. Supported by positive currency effects and acquisitions, both were up 20% compared to the same quarter last year. High Flex, High Volume and Global Technologies reported increases in net sales, while Pattern Generators net sales declined. EBIT was SEK 224 million with an EBIT margin of 18%, where all divisions posted double-digit EBIT margins. The decrease compared to last year was mainly due to the previously communicated change in the Group’s sales mix, resulting in a decrease in Pattern Generators’ share of total net sales, but also to the fact that the second quarter of last year was a very difficult comparison. period for high volume.

In June, Mycronic’s board of directors decided to study the possibility of listing Axxon, the heart of the High Volume division, on the STAR market of the Shanghai Stock Exchange and issuing a minority stake. Axxon has grown very successfully since the acquisition of Mycronic in 2016. A compound annual growth rate of net sales of 39%, with healthy profitability, has taken Axxon to a leading position in the distribution market. for the electronics industry. A listing would strengthen Axxon’s brand and position as the world’s leading electronics industry distributor and make it easier for the company to reach its full potential. If possible, registration could take place in 2024.

The photomask market for semiconductors and displays was healthy in the second quarter, although the war in Ukraine and lockdowns in China created uncertainty around investment decisions. Chinese authorities have announced plans to further stimulate the semiconductor industry, which could be positive for Pattern Generators. The division received no orders from mask writers during the quarter, while 5 SLX systems were delivered.

For High Flex, the quarter was characterized by continued high demand despite the current global situation. Mainly Europe, but also North America, saw strong market development, while China was weak due to lockdowns. There is a trend in the High Flex market where electronics production is outsourced to North America and Europe. With our product offering and geographic presence, we are well positioned for this trend and High Flex is in the process of opening an entity in Mexico which should be operational by the end of the year.

For High Volume, demand from suppliers in the electric car industry has been strong. They haven’t been seriously affected by the shutdowns in China, as contractors that supply electronics to electric car makers also have production in Taiwan, Vietnam and Mexico, for example. The surface mount technology (SMT) industry that supplies components for consumer electronics has been hit by the lockdowns. However, the consumer electronics industry is expected to recover in the second half if restrictions are eased.

In Global Technologies, the PCB and substrate electrical testing market performed well in Asia, but was slightly weaker in Europe and the United States. No slowdown was seen in China despite the lockdowns. Demand for die bonding was strong, although several large data centers and cloud service providers announced hiring freezes during the quarter.

I am pleased to conclude that through our continued hard work in the second quarter, we were successful in managing the challenges related to component supply and transportation and most importantly were successful in delivering our production equipment to our customers according to plan. . To date, we have also successfully managed rising inflation. With a strong balance sheet and net cash of SEK 505 million, we are well prepared to face future challenges and opportunities.

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