March 11, 2020 / 6:34 AM / 25 days ago

BRIEF-Mersen Reports FY Operating Margin Before Non-Recurring Items Of 10.6%

March 11 (Reuters) - MERSEN SA:

* STRONG SALES GROWTH IN SALES FOR THE THIRD SUCCESSIVE YEAR: +8% IN 2019

* FY OPERATING MARGIN BEFORE NON-RECURRING ITEMS OF 10.6% (PRE-IFRS 16), IN LINE WITH GUIDANCE

* FY VERY HIGH OPERATING CASH FLOW: €110M (PRE-IFRS16), UP 20% VERSUS. 2018

* PROPOSED DIVIDEND OF €1 PER SHARE FOR 2019 (VERSUS. €0.95 FOR 2018)

* GROUP NET INCOME AMOUNTED TO EUR 58.4 MILLION IN 2019, VERSUS EUR 56.5 MILLION IN 2018

* OUTLOOK: THE GROUP EXPECTS MORE MIXED TRENDS THAN IN PREVIOUS YEARS IN ITS MAIN MARKETS

* OUTLOOK: THE RENEWABLE ENERGIES MARKET SHOULD REMAIN DYNAMIC IN THE MEDIUM TERM. GROWTH IS EXPECTED TO BE SOLID IN THE SOLAR MARKET IN 2020, AFTER A STABLE YEAR IN 2019

* OUTLOOK: THE SILICON SEMICONDUCTOR MARKET IS EXPECTED TO REMAIN WEAK IN THE FIRST HALF OF 2020, AND THEN IS LIKELY TO RECOVER IN THE SECOND HALF. MERSEN IS EXPECTING A LESS BUOYANT MARKET FOR SIC SEMICONDUCTORS IN 2020 COMPARED TO 2019

* GIVEN THE CURRENT GLOBAL HEALTH CRISIS AND A HIGH COMPARABLE BASE, THE GROUP ANTICIPATES A FIRST-QUARTER PERFORMANCE THAT IS SIGNIFICANTLY DOWN ON THE FIRST THREE MONTHS OF 2019

* PROVIDED THE SITUATION DOES NOT PERSIST, IT MAY HOWEVER POTENTIALLY BE ABLE TO OFFSET THE LAG SEEN DURING THE FIRST QUARTER BY THE END OF THE YEAR

* OUTLOOK: IN ENERGY STORAGE MARKET, AND IN PARTICULAR ELECTRIC VEHICLE MARKET, MERSEN REMAINS WELL POSITIONED IN PREMIUM SEGMENT, WHILE ADJUSTING ITS DEVELOPMENT ON HYBRID PRODUCTS. GROWTH IS STILL EXPECTED AFTER 2021-2022, LINKED TO IMPLEMENTATION OF NEW REGULATORY MEASURES AGAINST AIR POLLUTION

* CHINA ACCOUNTS FOR 12% OF CONSOLIDATED SALES

* OUTLOOK: AFTER THREE YEARS OF STRONG GROWTH, CHEMICALS MARKET IS EXPECTED TO BE STABLE AT BEST IN 2020 AND PROCESS INDUSTRIES WILL LIKELY MIRROR TREND IN WORLD’S LARGEST ECONOMIES AND FARE LESS WELL THAN IN 2019

* GROUP MAY ADAPT ITS CAPITAL EXPENDITURE PROGRAM, INITIALLY SET AT BETWEEN €60 MILLION AND €65 MILLION

* PLUS THE SPECIFIC ADDITIONAL INVESTMENTS OF BETWEEN €20 MILLION AND €25 MILLION FOR THE COMMISSIONING OF THE COLUMBIA SITE (UNITED STATES) Source text: bit.ly/2IE2Oje Further company coverage: (Gdansk Newsroom)

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