Reading time ( words)
Mycronic demonstrated a strong financial performance during the first nine months of the year. Order intake and net sales increased by 44% and 9%, respectively. The operating margin reached 22%. Demand for the group's products is favorable, thanks to product launches which broadened the group's addressable market.
Mycronic also has major focus on investments for future growth, both through initiatives in product development and through acquisitions.
Third quarter (July-September 2016) Highlights
- Order intake was SEK 367 (559) million
- Net sales were SEK 497 (605) million
- EBIT was SEK 148 (262) million
- Earnings per share was SEK 1.17 (2.33)
January-September 2016 Results
- Order intake reached SEK 1,936 (1,341) million
- Net sales reached SEK 1,303 (1,194) million
- EBIT was SEK 286 (289) million
- Earnings per share was SEK 2.25 (2.52)
"The first nine months demonstrated good demand for Mycronic's production solutions. Order intake increased by 44% compared with the same period 2015 and net sales increased by 9%. We are making significant investments in product development to maintain our competitive edge. And we report an EBIT of SEK286 million, or a margin of 22%, for the first nine months. The order backlog reached SEK1.699 billion," said Mycronic President and CEO Lena Olving.
"The global market for SMT equipment experienced a negative trend in 2015, while Mycronic maintained volumes and margins. In 2016, the slowdown has affected business area SMT, primarily during the first half year. The trend in the third quarter was positive with an increase in the order intake and net sales compared with the third quarter 2015.
"Investments in product development within SMT equipment continue, in line with the strategy. We have launched new products and in this way broadened our product offering, which creates opportunities for growth. The introduction of an updated MY600 for dispensing of several different mounting fluids targets new segments on the SMT market, both from geographic and product perspectives. The introduction has been well received on the market."
To achieve long-term, sustainable growth, Mycronic's strategy includes M&As. "During 2016, we acquired the German company RoyoTech, which developed the strategic storage solutions that are an integrated part of Mycronic's offering for the smart factory. In August, an agreement was signed on the acquisition of Axxon, a leading actor on the dispensing market in China. The acquisition is strategically important as Axxon’s technology and market position complement our own position, which make us a leading global actor," said Olving.
Mycronic is continuing to execute the growth strategy at a high pace, while at the same time delivering good results.
The Board’s assessment remains that net sales in 2016 will be at the level of SEK1.9 billion, excluding effects from acquisitions.
Mycronic AB is a high-tech Swedish company engaged in developing, manufacturing and marketing of production solutions to the electronics industry. Mycronic headquarters are located in Täby, north of Stockholm and the Group has subsidiaries in China, France, Germany, Japan, Singapore, South Korea, Taiwan, the Netherlands, United Kingdom and the US. For more information, see the company website.