ASM INTERNATIONAL N.V. REPORTS FOURTH QUARTER 2018 RESULTS
Almere, The Netherlands
February 21, 2019, 6 p.m. CET
ASM International N.V. (Euronext Amsterdam: ASM) today reports its fourth quarter 2018 operating results (unaudited) in accordance with IFRS.
| EUR million || Q4 2017 (restated) || Q3 2018 || Q4 2018 |
| New orders || 203.2 || || 258.0 || || 301.6 || |
| Net sales || 181.5 || || 195.7 || || 254.7 || |
| Gross profit margin % || 39.6 || % || 40.9 || % || 41.7 || % |
| Operating result || 26.0 || || 28.0 || || 46.2 || |
| Result from investments (excluding amortization intangible assets resulting from the sale of ASMPT stake in 2013) || 14.0 || || 16.8 || || 6.1 || |
| Amortization intangible assets (resulting from the sale of ASMPT stake in 2013) || (4.6 || ) || (3.1 || ) || (2.4 || ) |
| Result from sale of ASMPT shares || 183.9 || || - || || - || |
| Net earnings || 215.9 || || 39.1 || || 43.7 || |
| Normalized net earnings (excluding amortization intangible assets resulting from the sale of ASMPT stake in 2013 and result from sale of ASMPT shares) || 36.6 || || 42.2 || || 46.1 || |
2017 results were restated for the effects of IFRS 15
New orders received of €302 million, at the highest level in history, increased 17% compared to Q3 2018 and were 48% higher compared to Q4 of last year.
Net sales for the fourth quarter 2018 were €255 million, at the highest level in history, an increase of 30% compared to the previous quarter and an increase of 40% compared to Q4 last year.
Gross profit margin was 41.7% in Q4 2018 compared to 40.9% in the previous quarter and 39.6% in Q4 of last year.
Operating result increased to €46 million compared to the previous quarter. The increase is mainly the result of the higher sales level.
Normalized net earnings for the fourth quarter 2018 increased by €4 million compared to Q3 2018.
Commenting on the results, Chuck del Prado, President and Chief Executive Officer of ASM International, said:
"In Q4 we realized sales of €255 million and an order intake of €302 million. Sales were slightly above our guidance of €220-250 million. Our order intake was substantially above the €240-260 million that we indicated earlier, and again substantially higher than our former record level. The high order intake is driven by logic, foundry and then memory and was impacted by pull-ins of orders originally expected in the first half of 2019. As a consequence, and in line with our earlier 2018 guidance, we have seen a much stronger second half than first half. This reflects our strong position in the logic/foundry market, which, as compared to the memory market, showed a healthy development in the second half of 2018. Due to this we will start 2019 with a high order book. We delivered on our goal to outgrow the wafer fab equipment (WFE) market in 2018 by growing our sales year-over-year with 17% on a US$ basis."
For Q1, on a currency comparable level, we expect sales of €225-245 million, while we expect sales in Q2 to be at the €200-230 million level. For Q1, on a currency comparable level, bookings are expected in the range of €200-220 million.
For 2019, general expectations are that the wafer fab equipment (WFE) market will decline with a mid to high teens percentage. Based upon this current market view, we expect to outperform the WFE market in 2019.
TREASURY SHARES AND DIVIDEND PROPOSAL
On October 11, 2018 we completed the 2018 share program of €250 million, which started on June 5, 2018. In total we repurchased 5,443,888 shares at an average price of €45.92, including expenses, under the 2018 program.
As of February 21, 2019, ASMI held 6.97 million treasury shares, which is more than sufficient to cover our outstanding options and restricted/performance shares. Hence ASMI will propose to the Annual General Meeting, to be held on May 20, 2019, the cancellation of 5 million treasury shares. This follows the intention that ASMI earlier expressed to reduce its issued share capital by withdrawing the shares repurchased as part of the 2018 share buyback program, save for such number of treasury shares as maybe necessary to fund ongoing share and option programs for employees and board members.
ASMI will propose to the forthcoming 2019 Annual General Meeting Shareholders, to declare a dividend of €1.00 per common share, an increase of 25% compared to the dividend paid in 2018.
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, February 22, 2019 at 15:00 Continental European Time (9:00 a.m. - US Eastern Time).
The teleconference dial-in numbers are as follows:
United States: +1 631 510 7495
International: +44 (0) 2071 928 000
The Netherlands: +31 (0)20 714 3545
Access Code: 5490498
A simultaneous audio webcast and replay will be accessible at www.asm.com.
T: +31 88 100 8500
Ian Bickerton ASM INTERNATIONAL N.V. REPORTS
T: +31 625 018 512