29.10.2015
Siltronic AG DE000WAF3001
Siltronic AG: Siltronic increases third quarter sales year on year; currency-related decline in EBITDA
(DGAP-Media / 29.10.2015 / 07:13)
Ladies and gentlemen,
please find attached the press release of Siltronic AG in course of todays
Q3 number.
Additional Information are on our website
http://www.siltronic.com/int/de/investor_relations/reports/reports.jsp.
Best regards,
Judith Distelrath
Senior Manager Investor Relations
Siltronic AG
Siltronic AG, Hanns-Seidel-Platz 4, 81737 München, Germany
Sitz: München, Amtsgericht München HRB 150884
Vorstand: Christoph von Plotho (Vorsitzender), Rainer Irle
Vorsitzender des Aufsichtsrats: Joachim Rauhut
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- Third-quarter sales up 7 percent year on year to approximately EUR231
million
- EBITDA drops by just under 12 percent in the third quarter to EUR29
million; EBITDA margin is slightly below 13 percent
- Adjusted for exchange rate losses (reported under other operating income
and expense), EBITDA margin is 19 percent
- Equity ratio at 48 percent
- Free cash flow over the nine-month period came to EUR48 million
Munich, October 29, 2015 - Thanks to the favorable effects of a strong
dollar more than offsetting the declining price of semiconductor wafers
Siltronic AG increased its sales in the third quarter of 2015 compared to
the corresponding prior-year period. The Munich-based semiconductor wafer
manufacturer generated sales of EUR230.6 million, a year-on-year increase
of almost 7 percent (Q3 2014: EUR216.0 million). In the first nine months
of the current financial year, sales totaled to EUR716.0 million which is a
year-on-year increase of 15 percent (Q1-Q3 2014: EUR622.7 million).
Sales fell by 6 percent (Q2 2015: EUR246.7 million) compared to the
preceding quarter. This was primarily due to a market-driven drop in unit
sales as Siltronic customers reduced inventories. The main reason for
inventory correction from customers was the notably lower than originally
expected number of smartphone, tablet, and PC sales.
Siltronic's EBITDA for the third quarter of 2015 was EUR29.3 million,
almost 12 percent down on the corresponding prior-year period (Q3 2014:
EUR33.2 million). Compared with the preceding quarter, EBITDA fell by just
under 7 percent (Q2 2015: EUR31.4 million). The EBITDA margin for the
quarter under review was 12.7 percent compared to 15.4 percent in the third
quarter of 2014 and 12.7 percent in the second quarter of 2015. For the
first three quarters of 2015, EBITDA amounted to EUR100.8 million, more
than 8 percent up on the same period of the previous year (Q1-Q3 2014:
EUR93.0 million). The EBITDA margin for the first nine months was 14.1
percent (Q1-Q3 2014: 14.9 percent).
Besides lower wafer prices (in US dollar), the main reason for the
year-on-year decline in EBITDA in the third quarter of 2015 were losses
arising in connection with currency hedging. These losses reduced
Siltronic's EBITDA in the third quarter of 2015 by EUR15.5 million. In the
third quarter of 2014, corresponding gains had increased EBITDA by EUR5.3
million. The adjusted EBITDA margin for the third quarter of 2015 was 19.4
percent (Q3 2014: 12.9 percent).
Earnings before interest and tax (EBIT) were EUR0.3 million in the third
quarter of 2015, an improvement of EUR8 million on the same period of the
previous year (Q3 2014: loss of EUR7.7 million). The EBIT margin was 0.1
percent (Q3 2014: -3.6 percent). For the first nine months, EBIT was EUR8.8
million (Q1-Q3 2014: loss of 18.1 million) with EBIT margin reaching 1.2
percent (Q1-Q3 2014: -2.9 percent). In the third quarter of 2015 Siltronic
generated a loss of EUR6.2 million (Q3 2015: net loss of 12.2 million),
representing a loss per share of EUR0.15 (Q3 2014: loss per share of
EUR0.31). For the first nine months of the year, the loss for the period
amounted to EUR11.2 million (Q1-Q3 2014: net loss of EUR29.3 million),
which represents a loss per share of EUR0.21 (Q1-Q3 2014: loss per share of
EUR0.69).
"Despite the current market weakness, we managed to increase our sales in
the third quarter and drive forward with our core operational and strategic
objectives," noted Chief Executive Officer Christoph von Plotho in Munich
on Thursday. "That applies in particular to our cost performance. For
example, our variable manufacturing costs for 300mm wafers reached an
all-time low in August. At the same time, several production lines set
output records. That played a significant role in maintaining our EBITDA
margin at the same level as the previous quarter."
Cash flow, capital expenditure, net financial assets, equity ratio, and
ROCE
Cash flow from operating activities for the period January to September of
2015 amounted to EUR88.1 million, a decline of just over 24 percent on the
first nine months of 2014 (Q1-Q3 2014: EUR116.3 million). The main reason
for this was the reduction in the amount of prepayments received. Whereas
Siltronic had received prepayments of EUR53.2 million in the first nine
months of 2014, there was no inflow of funds from prepayments in the first
three quarters of 2015.
At the same time, cash payments for capital investments in property, plant
and equipment and intangible assets increased significantly, totaling
EUR40.2 million in the period from January to September of 2015 (Q1-Q3
2014: EUR20.9 million). In addition to the capital expenditure on the
development of products and processes, funds were also channeled into
targeted measures for the further automation of production and the
selective replacement of crystal growing capacities.
Overall, free cash flow for the first nine months of 2015 (net cash
provided by operating activities after capital expenditure on property,
plant and equipment and on intangible assets) amounted to EUR47.9 million
(Q1-Q3 2014: EUR95.4 million). Although this is a decline of almost 50
percent, free cash flow actually grew year on year by almost 14 percent
after adjusting for prepayments received.
As a result of the IPO and the positive free cash flow generated in the
first three quarters of 2015, Siltronic had net financial assets of
EUR166.2 million as of September 30, 2015 (December 31, 2014: -EUR24.5
million).
The equity ratio improved considerably over the first nine months of 2015.
Siltronic's equity amounted to EUR501.7 million as of September 30, 2015
(December 31, 2014: EUR311.8 million). This reflects, above all, the inflow
of funds from the IPO, which, after transaction costs, increased equity by
EUR143.2 million. In addition, higher discount rates used in the
calculation of provisions for pensions and other post-employment benefits
also had a positive impact on equity, increasing it by EUR49.9 million. The
equity ratio was 48.3 percent as of September 30, 2015 (December 31, 2014:
29.1 percent).
The return on capital employed (ROCE) for the first nine months of 2015 was
1.5 percent (Q1-Q3 2014: -2.9 percent).
Employees
The average number of employees declined further compared to December 31,
2014. The reduction was primarily due to pre-retirement part-time
employment arrangements, voluntary severance agreements, natural
fluctuation, and transfers to Wacker Chemie AG. As of September 30, 2015,
the Group employed 3,978 people worldwide (December 31, 2014: 4,163).
Outlook
Following a strong start to the year with unit sales in the first half of
the year up by more than 10 percent, unit sales in the second half of the
year have been falling sharply. Some customers purchased fewer wafers in
the third quarter in order to run down their surplus inventories. In fact,
the same inventory correction actions appear to have been carried over into
the final quarter of 2015. Furthermore, unit sales of wafers tend to be
weaker in the fourth quarter, this usual seasonal effect being more
pronounced this year. The persistently weak sales of PCs, tablets, and
smartphones in China are having a particularly negative impact on wafer
demand for logic components. However for 2015, Siltronic still expects to
see a slight year-on-year increase in unit sales.
Prices in invoicing currency (US dollars) were significantly lower in the
first nine months of the year than in the corresponding prior-year period,
but in Euro, average sales price per wafer was significantly up on the
prior-year level. Wafers for logic applications command higher prices, but
as this is the area that has been hardest hit by the current weakness in
the market, average sales price per wafer for 2015 as a whole will fall
slightly compared to the figure for the first nine months of the year, but
will remain well above the level of 2014.
There was a 15 percent year-on-year increase in sales in the first nine
months of 2015. For 2015, Siltronic expects currency-related sales growth
in the high single-digit percentage range.
Exchange rate effects, which are recognized under other operating income
and expense, will lower the EBITDA margin for 2015. The EBITDA margin for
the first nine months of the year was 14 percent. This included net
exchange rate losses of EUR35 million, primarily relating to foreign
currency derivatives that were entered into in 2014 for currency hedging
purposes. For 2015, Siltronic expects exchange rate losses to lower
earnings by a total of EUR50 million. The EBITDA margin for the year as a
whole will be slightly lower than for the first three quarters. Siltronic's
medium-term EBITDA margin goal is 20 percent.
Siltronic generated a positive ROCE in the first nine months of 2015.
Contrary to the forecast provided in the second quarter of 2015, Siltronic
now expects ROCE to be slightly negative for the year. Siltronic's
medium-term ROCE goal is 11 percent.
Capital expenditure is now rising in accordance with plans. In the first
nine months of 2015, Siltronic invested EUR41 million in additions to
property, plant and equipment and to non-current intangible assets. For the
year, the Company expects capital expenditure to total around EUR70
million.
Free cash flow is expected to remain positive over 2015. In the first nine
months of 2015, Siltronic generated free cash flow of EUR48 million. For
the year as a whole, the Company anticipates that free cash flow will be
close to the level of the first nine months.
Note for editors: The Q3 report for 2015 is available to download on
Siltronic's website (www.siltronic.com) under Investor Relations.
For more information please contact:
Judith Distelrath
Tel: +49 (0)89 8564 3133
Email: [email protected]
Company profile:
Siltronic is the world's third-largest manufacturer of hyperpure silicon
wafers, and is a partner to many leading chip manufacturers. The Company
has production sites in Europe, Asia, and the USA. Siltronic develops and
manufactures wafers with a diameter of up to 300mm. Silicon wafers form the
basis for advanced microelectronics and nanoelectronics. They are used, for
example, in computers, smartphones, flat screens, navigation systems,
management and control systems for the automotive sector, and for many
other purposes.
This press release contains statements relating to our future business and
financial performance and to future events and developments affecting
Siltronic that may constitute forward-looking statements. Such statements
can be recognized by formulations such as 'expect', 'intend', 'anticipate',
'plan', 'believe', 'strive', 'estimate', 'will be' and similar terms. Such
statements are based on current expectations and certain assumptions of
Siltronic's management, many of which lie outside the influence of
Siltronic. They are therefore subject to a variety of risks and
uncertainties. Should one or more of these risks or uncertainties
materialize or should it prove to be the case that the underlying
expectations are not fulfilled or the underlying assumptions are incorrect,
the actual results and performance of Siltronic may differ significantly
(either negatively or positively) from the results that were explicit or
implicit in the forward-looking statements. Siltronic does not undertake,
nor does it intend, to update these forward-looking statements or to
correct them in the event of unexpected developments.
End of Media Release
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Issuer: Siltronic AG
Key word(s): Information technology
29.10.2015 Dissemination of a Press Release, transmitted by DGAP - a
service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
The DGAP Distribution Services include Regulatory Announcements,
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Media archive at www.dgap-medientreff.de and www.dgap.de
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Language: English
Company: Siltronic AG
Hanns-Seidel-Platz 4
81737 Munich
Germany
Phone: +49 89 8564 3133
Fax: +49 89 8564-3902
E-mail: [email protected]
Internet: www.siltronic.com
ISIN: DE000WAF3001
WKN: WAF300
Listed: Regulated Market in Frankfurt (Prime Standard); Regulated
Unofficial Market in Berlin, Dusseldorf, Stuttgart,
Tradegate Exchange
End of News DGAP Media
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406537 29.10.2015
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