ASM INTERNATIONAL N.V. REPORTS THIRD QUARTER 2017 RESULTS
Almere, The Netherlands
October 31, 2017
ASM International N.V. (Euronext Amsterdam: ASM) today reports its third quarter 2017 operating results (unaudited) in accordance with IFRS.
|EUR million||Q3 2016||Q2 2017||Q3 2017|
|New orders||122.6|| ||205.9|| ||160.4|| |
|Net sales||144.2|| ||202.0|| ||185.3|| |
|Gross profit margin %||44.2||%||43.7||%||40.0||%|
|Operating result||16.8|| ||37.7|| ||25.7|| |
|Result from investments (excluding amortization intangible assets resulting from the sale of the 12% stake of ASMPT)||26.7|| ||30.9|| ||32.1|| |
|Amortization intangible assets resulting from the sale of the 12% stake of ASMPT||(6.7||)||(7.3||)||(5.4||)|
|Net earnings||33.1|| ||132.1|| ||42.2|| |
|Normalized net earnings (excluding amortization intangible assets resulting from the sale of the 12% stake of ASMPT and result from sale and dilution of ASMPT stake)||39.8|| ||55.6|| ||47.6|| |
- New orders at €160 million were 22% below the Q2 2017 level and 31% above last year's Q3 level.
- Net sales for the third quarter 2017 were €185 million, a decrease of 8% compared to the previous quarter. Year-on-year net sales increased with 28%.
- Operating result decreased to €26 million. This reduction is mainly related to the newly introduced products which are temporarily impacting the gross margin and had an effect of €9 million in Q3.
- Normalized net earnings for the third quarter 2017 decreased by €8 million compared to the second quarter 2017. The financing result included €8 million negative effects from currencies compared to €11 million negative effects in the second quarter. The result from investments increased with €1 million.
Commenting on the results, Chuck del Prado, President and Chief Executive Officer of ASM International said: "In Q3, we realized sales of €185 million and an order intake of €160 million, well in line with our guidance. The sales included several deliveries of Intrepid Epitaxy and new PECVD applications. The initial margin on these newly introduced products is relatively low, as earlier indicated, and impacted our gross margin in the quarter with 5 percentage points. We expect our gross margin to normalize again in the course of 2018."
We continue to expect a clear year-on-year improvement in the single wafer ALD market in 2017, with demand in the Logic/Foundry segment remaining healthy and a strong increase in the 3D-NAND segment.
For Q4, on a currency comparable level, we expect sales of €190-210 million and an order intake of €170-190 million.
In 2017, the company benefits from a very strong wafer fab equipment market. For 2018, market watchers currently expect this market to increase with a low to mid single digit percentage. We aim to outgrow the wafer fab equipment market in 2018.
SHARE BUYBACK PROGRAM
On October 26, 2016, ASMI announced a share buyback program for the repurchase of up to €50 million of the company's common shares within the 2016-2017 time frame. On March 2, 2017, ASMI announced that its Management Board authorized an increase in this program to €100 million. The 2016-2017 program started on December 13, 2016 and was completed on August 31, 2017. Under the 2016-2017 program 1,997,522 shares were repurchased at an average price of €50.06.
On April 24, 2017, ASMI announced a partial sale of its ASMPT stake, 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. ASMI has the intention to reduce its capital by withdrawing the repurchased shares after having received the approval from its shareholders. The repurchase program is part of ASMI's commitment to use excess cash for the benefit of its shareholders. On September 30, 2017, 5.0% of the program was completed at an average share price of €52.44.
During the Annual General Meeting of Shareholders of May 22, 2017 the Board was authorized to acquire up to 10% of ASMI shares for a period of 18 months. During the same meeting it was approved to cancel 1.5 million treasury shares.This became effective as of August 1, 2017.
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.
ASM International will host an investor conference call and web cast on Wednesday, November 1, 2017 at 15:00 Continental European Time (10:00 a.m. - US Eastern Time).
The teleconference dial-in numbers are as follows:
· United States: +1 646 254 3360
· International: +44 (0)20 3427 1918
· The Netherlands: +31 (0)20 716 8257
· Access Code: 7553803
A simultaneous audio webcast and replay will be accessible at www.asm.com.
T: +31 88 100 8500
Press Release Third Quarter 2017 Results
T: +31 625 018 512