FINANCIAL HIGHLIGHTS
|
EUR million
|
Q3 2018
|
Q2 2019*
|
Q3 2019
|
|
New orders
|
258.0
|
373.1
|
291.8
|
|
Net sales
|
195.7
|
363.3
|
271.2
|
|
Gross profit margin %
|
40.9%
|
59.0%
|
42.4%
|
|
Operating result
|
28.0
|
150.2
|
50.6
|
|
Result from investments (excluding amortization intangible assets resulting from the sale of ASMPT stake in 2013)
|
16.8
|
2.0
|
6.5
|
|
Amortization intangible assets (resulting from the sale of ASMPT stake in 2013)
|
(3.1)
|
(3.4)
|
(3.5)
|
|
Net earnings
|
39.1
|
121.6
|
53.5
|
|
Normalized net earnings (excluding amortization intangible assets resulting from the sale of ASMPT stake in 2013 and result from sale of ASMPT shares)
|
42.2
|
125.0
|
56.9
|
* Including effects of litigation settlement
- New orders of €292 million driven by foundry and logic, 8% above Q2 2019 (€270 million excluding patent litigation settlement).
- Net sales for the Q3 2019 were €272 million, 4% up compared to the previous quarter (€260 million excluding patent litigation settlement).
- Gross profit margin was 42.4% in Q3 2019 compared to 59.0% Q2 2019 (42.8% excluding patent litigation settlement).
- Operating result of €51 million up €4 million compared to the previous quarter (€47 million excluding patent litigation settlement).
- Normalized net earnings for the third quarter 2019 decreased by €68 million compared to Q2 2019, excluding the patent litigation settlement net earnings in Q3 showed an increase.
COMMENT
Commenting on the results, Chuck del Prado, President and Chief Executive Officer of ASM International said:
"In Q3 we realized sales of €271 million. Excluding the litigation settlement, this is 4% above the Q2 level, reaching again a new record level, driven by continuous high demand in the logic/foundry segment. Our order intake, at €292 million was well above our guidance of €250-270 million driven by strong pull-ins from our logic/foundry customers. Our cash position in the quarter increased again substantially, partly due to the receipt of 50% of the US$115 million cash proceeds from the litigation settlement."
OUTLOOK
For Q4, on a currency comparable level, we expect sales of €310-330 million while bookings, on a currency comparable level, are expected to be in the range of €290-310 million. This guidance for both sales as well as orders does not include the proceeds of US$61 million related to the settlement of the arbitration proceeding with Kokusai Electric Corporation, which will be added to those numbers in Q4. For 2019, general expectations are now that the wafer fab equipment (WFE) market will decline with a mid-teens percentage. Market demand in the memory segment generally continues to be weak while visibility remains limited. Market demand in the logic and foundry segments is solid in 2019, driven by spending on the most advanced nodes, and expected to continue into the first part of 2020. We expect to strongly outperform the WFE market in 2019.
SHARE BUYBACK PROGRAM
The execution on the €100 million share buyback program, announced on July 23, 2019, will start as from early November.
INTERIM DIVIDEND
ASMI announces today an interim dividend of €1.00 per common share. In view of the recent strong increases in the cash position, the Board decided this year to bring forward part of the 2019 dividend in the form of an interim dividend. The final dividend proposal, which will be in line with ASMI’s policy to pay a sustainable dividend, will be announced as part of the fourth quarter 2019 and full yearresults 2019.
The relevant dates for this interim dividend payment are:
Ex-dividend date share Euronext and OTC US November 5, 2019
Record date November 6, 2019
Payment date November 12, 2019
ARBITRATION SETTLEMENT
As announced on October 29, 2019, ASMI has entered into a settlement agreement with Kokusai Electric Corporation (“KEC”) concerning all the matters of the arbitration proceeding relating to the license agreement which expired in November 2017. KEC will pay an amount of US$61 million to ASM. This settlement of the arbitration proceeding is separate from the settlement of the patents lawsuits and invalidation proceedings as announced on July 1, 2019.
Commenting on the results, Chuck del Prado, President and Chief Executive Officer of ASM International said:
"In Q3 we realized sales of €271 million. Excluding the litigation settlement, this is 4% above the Q2 level, reaching again a new record level, driven by continuous high demand in the logic/foundry segment. Our order intake, at €292 million was well above our guidance of €250-270 million driven by strong pull-ins from our logic/foundry customers. Our cash position in the quarter increased again substantially, partly due to the receipt of 50% of the US$115 million cash proceeds from the litigation settlement."
OUTLOOK
For Q4, on a currency comparable level, we expect sales of €310-330 million while bookings, on a currency comparable level, are expected to be in the range of €290-310 million. This guidance for both sales as well as orders does not include the proceeds of US$61 million related to the settlement of the arbitration proceeding with Kokusai Electric Corporation, which will be added to those numbers in Q4. For 2019, general expectations are now that the wafer fab equipment (WFE) market will decline with a mid-teens percentage. Market demand in the memory segment generally continues to be weak while visibility remains limited. Market demand in the logic and foundry segments is solid in 2019, driven by spending on the most advanced nodes, and expected to continue into the first part of 2020. We expect to strongly outperform the WFE market in 2019.
SHARE BUYBACK PROGRAM
The execution on the €100 million share buyback program, announced on July 23, 2019, will start as from early November.
INTERIM DIVIDEND
ASMI announces today an interim dividend of €1.00 per common share. In view of the recent strong increases in the cash position, the Board decided this year to bring forward part of the 2019 dividend in the form of an interim dividend. The final dividend proposal, which will be in line with ASMI’s policy to pay a sustainable dividend, will be announced as part of the fourth quarter 2019 and full yearresults 2019.
The relevant dates for this interim dividend payment are:
Ex-dividend date share Euronext and OTC US November 5, 2019
Record date November 6, 2019
Payment date November 12, 2019
ARBITRATION SETTLEMENT
As announced on October 29, 2019, ASMI has entered into a settlement agreement with Kokusai Electric Corporation (“KEC”) concerning all the matters of the arbitration proceeding relating to the license agreement which expired in November 2017. KEC will pay an amount of US$61 million to ASM. This settlement of the arbitration proceeding is separate from the settlement of the patents lawsuits and invalidation proceedings as announced on July 1, 2019.
