ASM INTERNATIONAL N.V. REPORTS FIRST QUARTER 2018 RESULTS
Almere, The Netherland
April 19, 2018
ASM International N.V. (Euronext Amsterdam: ASM) today reports its first quarter 2018 operating results (unaudited) in accordance with IFRS.
| EUR million || Q1 2017 (restated) || Q4 2017 (restated) || Q1 2018 |
| New orders || 204.2 || || 203.2 || || 206.5 || |
| Net sales || 156.8 || || 181.5 || || 159.0 || |
| Gross profit margin % || 43.0 || % || 39.6 || % || 37.8 || % |
| Operating result || 19.4 || || 26.0 || || 11.8 || |
| Result from investments (excluding amortization intangible assets resulting from the sale of ASMPT stake in 2013) || 35.4 || || 14.0 || || 16.3 || |
| Amortization intangible assets (resulting from the sale of ASMPT stake in 2013) || (5.8 || ) || (4.6 || ) || (3.8 || ) |
| Result from sale of ASMPT shares || - || || 183.9 || || - || |
| Net earnings || 40.4 || || 215.9 || || 15.0 || |
| Normalized net earnings (excluding amortization intangible assets resulting from the sale of ASMPT stake in 2013 and result from sale of ASMPT shares) || 46.2 || || 36.6 || || 18.8 || |
Prior quarter results were restated for the effects of IFRS 15. Please refer to Annex 2 for details.
New orders at €206 million were at the highest level ever and 2% above the Q4 2017 level and 1% above the level of Q1 2017.
Net sales for the first quarter 2018 were €159 million, a decrease of 12% compared to the restated previous quarter.
Gross profit margin was 37.8% in Q1 2018. The margin was beside the effects of new product introductions impacted by sales mix and preparation for anticipated higher activity levels.
Operating result decreased to €12 million compared to the previous quarter. The decrease is mainly the result of the lower sales level.
Normalized net earnings for the first quarter 2018 decreased by €18 million compared to the fourth quarter 2017.
Commenting on the results, Chuck del Prado, President and Chief Executive Officer of ASM International said:
"In Q1 we realized sales of €159 million and an order intake of €206 million. Our sales were at the lower end of our guidance while order intake was at the higher end of our guidance. The gross margin in Q1 at 38% was impacted by an unfavorable product mix and costs related to our preparation for further growth. We estimate our gross margin in Q2 to show a substantial improvement bringing it back again in the range of low to mid 40's."
For Q2, on a currency comparable level, we expect sales of €200-230 million, and we expect an order intake of €160-200 million. The broad ranges for Q2 reflect some uncertainty around the exact timing of individual tools.
For 2018, market watchers currently expect the wafer fab equipment market to increase with, on average, a high single digit percentage. We aim to outgrow the wafer fab equipment market in 2018.
SHARE BUYBACK PROGRAM AND ANNUAL GENERAL MEETING OF SHAREHOLDERS
On April 24, 2017, ASMI announced a partial sale of a stake of approximately 5% in ASMPT, whereby ASMI indicated to use the proceeds of approximately €245 million for a new share buyback program. The start of this new program for a total amount of €250 million was announced on September 22, 2017. The program was completed on March 29, 2018. In total, 4,353,292 shares at an average price of €57.43, including expenses, were repurchased.
On November 2, 2017, ASMI announced a partial sale of a stake of approximately 9% in ASMPT, whereby ASMI received proceeds of approximately €445 million. As announced on February 28, 2018, ASMI intends to distribute the proceeds through a new €250 million share buyback program and a capital return. ASMI remains committed to use excess cash for the benefit of its shareholders.
On April 16, 2018, ASMI published the agenda for the 2018 Annual General Meeting of Shareholders (AGM), to be held on May 28, 2018, which includes the following financial matters:
- proposal to declare a dividend of €0.80 per common share;
- proposal to distribute €4.00 per common share; and
- proposal to cancel 6 million treasury shares.
Please refer to the AGM documents available on our website for more detailed information.
About ASM International
ASM International NV, headquartered in Almere, the Netherlands, its subsidiaries and participations design and manufacture equipment and materials used to produce semiconductor devices. ASM International, its subsidiaries and participations provide production solutions for wafer processing (Front-end segment) as well as for assembly & packaging and surface mount technology (Back-end segment) through facilities in the United States, Europe, Japan and Asia. ASM International's common stock trades on the Euronext Amsterdam Stock Exchange (symbol ASM). For more information, visit ASMI's website at www.asm.com.
Cautionary Note Regarding Forward-Looking Statements: All matters discussed in this press release, except for any historical data, are forward-looking statements. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. These include, but are not limited to, economic conditions and trends in the semiconductor industry generally and the timing of the industry cycles specifically, currency fluctuations, corporate transactions, financing and liquidity matters, the success of restructurings, the timing of significant orders, market acceptance of new products, competitive factors, litigation involving intellectual property, shareholders or other issues, commercial and economic disruption due to natural disasters, terrorist activity, armed conflict or political instability, epidemics and other risks indicated in the Company's reports and financial statements. The Company assumes no obligation nor intends to update or revise any forward-looking statements to reflect future developments or circumstances.
This press release contains inside information within the meaning of Article 7(1) of the EU Market Abuse Regulation.
ASM International will host an investor conference call and web cast on Friday, April 20, 2018 at 17:00 Continental European Time (11:00 a.m. - US Eastern Time).
The teleconference dial-in numbers are as follows:
United States: +1 929 477 0448
International: +44 (0)330 336 9105
The Netherlands: +31 (0)20 721 9251
Access Code: 9278937
A simultaneous audio webcast and replay will be accessible at www.asm.com.
T: +31 88 100 8500
T: +31 625 018 512 Press Release First Quarter Results