ASM INTERNATIONAL N.V. REPORTS FOURTH QUARTER 2014 RESULTS
Almere, The Netherlands
March 4, 2015
ASM International N.V. (NASDAQ: ASMI and Euronext Amsterdam: ASM) reports today its fourth quarter 2014 operating results (unaudited) in accordance with US GAAP.
| || Quarter || Full Year |
| EUR million || Q4 2013 || Q3 2014 || Q4 2014 || Pro-forma 1) 2013 || 2014 || |
| New orders || 133.1 || || 156.2 || || 154.4 || || 479.6 || || 602.1 || |
| Net sales || 126.9 || || 122.2 || || 124.3 || || 452.0 || || 545.6 || |
| Gross profit margin % || 39.3 || % || 43.2 || % || 43.0 || % || 39.0 || % || 43.1 || % |
| Operating result || 15.8 || || 17.2 || || 13.4 || || 44.7 || || 90.5 || |
| Result from investments (excl. amortization and fair value purchase price allocation) || 1.5 || || 30.7 || || 8.9 || || 20.9 || || 61.1 || |
| Remeasurement gain, realized gain on sale of ASMPT shares, amortization and fair value adjustments1) || (343.2 || ) || (5.7 || ) || (6.0 || ) || 1,006.4 || || (22.5 || ) |
| Net earnings || (334.0 || ) || 54.6 || || 21.0 || || 1,051.9 || || 137.3 || |
| Normalized net earnings (excl. remeasurement gain realized gain on sale of ASMPT shares, amortization and fair value adjustments) || 9.3 || || 60.2 || || 26.9 || || 45.5 || || 159.8 || |
Net sales for the fourth quarter 2014 increased with 2% compared to the third quarter. Year-on-year net sales decreased with 2%.
New orders at €154 million were slightly above our guidance of a €130-150 million range.
Normalized net earnings for the fourth quarter 2014 decreased compared to the third quarter, mainly due to a lower result from investments which includes a provision for a tax settlement of ASMPT in Hong Kong for the period 2001-2010 with an impact of €9 million, and less positive currency effects on cash we hold in foreign currencies (especially US$). Compared to the same quarter last year, besides the effect of higher results from investments and currencies, the improvement was mainly due to higher sales in combination with effects of changes in our manufacturing operations and supply chain.
1) Following the close of the sale on March 15, 2013 of a 12% share in ASMPT, the entity in which the Back-end segment is organized, ASMI's shareholding is reduced to 40%. As a consequence, as from March 15, 2013 the results of ASMPT are deconsolidated. From that date onwards the net result of ASMPT is reported on the line 'result from investments'. In 2013 a purchase price allocation took place, which was finalized in the fourth quarter, resulting in the recognition and subsequent amortization of certain intangible assets.
Commenting on the results, Chuck del Prado, President and Chief Executive Officer of ASM International said:
"2014 was a strong year for ASM. We realized, excluding ASMPT, the highest sales level ever with a stable gross margin during the year of approximately 43%. (PE)ALD demand was strong and we extended our customer base. This creates a solid base and has led to the decision to propose in the coming AGM an increase of our dividend with 20% to €0.60 per share. Q4 showed relatively stable sales as compared to Q3, while our order intake at €154 million was slightly above the range as indicated. This established a strong backlog of €176 million at the beginning of 2015."
For Q1 we expect sales between €150 and €160 million. For Q2 we expect a double digit sales increase as compared to Q1. For the second half of 2015 the current visibility is limited. The Q1 order intake is expected to be in the range of €145-165 million.
SHARE BUYBACK PROGRAM
On October 29, 2014, ASMI announced a share buyback program, to purchase up to an amount of €100 million of its own shares within the 2014-2015 time frame. The repurchase program is part of ASMI's commitment to use excess cash for the benefit of its shareholders.
ASMI intends to use part of the shares for commitments under employee share-based compensation schemes.
The buyback program is executed by intermediaries through on-exchange purchases or through off-exchange trades. The program started on November 24, 2014, and will end on completion of the program but ultimately on November 20, 2015.
The maximum number of shares to be repurchased on any given day will not exceed 25% of the average daily trading volume on the regulated market on which purchases are made, calculated over the last 20 trading days before the date of repurchase. The program does not include the repurchase of ASMI's New York Registry Share program. On March 3, 2015 of the total program 47% has been repurchased of which 32% was repurchased in Q4 2014.
2014 ANNUAL REPORTS
On April 9, 2015 ASMI will publish its 2014 Annual Report on Form 20-F and Statutory Annual Report. The reports will be published on our website at www.asm.com.
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 NASDAQ (symbol ASMI) and the Euronext Amsterdam Stock Exchange (symbol ASM). For more information, visit ASMI's website at www.asm.com.
Safe Harbor Statement under the U.S. Private Securities Litigation Reform Act of 1995: All matters discussed in this statement, 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, shareholder and 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 filings from time to time with the U.S. Securities and Exchange Commission, including, but not limited to, the Company's reports on Form 20-F and Form 6-K. 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 Thursday, March 5, 2015 at 15:00 Continental European Time (9:00 a.m. - US Eastern Time).
The teleconference dial-in numbers are as follows:
United States: +1 646 254 3361
International: + 44 (0)20 3427 1917
The Netherlands: + 31 (0)20 716 8257
Access Code: 7221867
A simultaneous audio web cast will be accessible at www.asm.com.
T: +31 88 100 8500
Mary Jo Dieckhaus
T: +1 212 986 2900
Ian Bickerton Press Release Fourth Quarter 2014 Results
T: +31 625 018 512