SÜSS MicroTec SE: SUSS MicroTec adjusts outlook for fiscal year 2019 and publishes first preliminary figures for third quarter 2019

SÜSS MicroTec SE: SUSS MicroTec adjusts outlook for fiscal year 2019 and publishes first preliminary figures for third quarter 2019

DGAP-News: SÜSS MicroTec SE / Key word(s): Change in Forecast/9 Month figures

04.11.2019 / 11:53
The issuer is solely responsible for the content of this announcement.

SUSS MicroTec adjusts outlook for fiscal year 2019 and publishes first preliminary figures for third quarter 2019
  • Q3 order intake increased by more than 40% to EUR 66 million
  • Q3 sales of EUR 37 million almost at previous year's level
  • EBIT Q3 negative
  • Adjustment of guidance for 2019: order intake increased, sales at upper end, EBIT margin reduced
Garching, Germany, November 4, 2019 - Based on preliminary figures for the first nine months and an updated outlook, SUSS MicroTec is substantiating its expectations for order intake, sales and earnings for the current fiscal year.

At EUR 66.0 million, incoming orders in the third quarter of 2019 were up more than 40% on the same period of the previous year (Q3/2018: EUR 47.0 million). The company therefore assumes that the previously published forecast of EUR 95 million order intake in the second half of 2019 will be significantly exceeded. As of September 30, 2019, the order backlog amounted to EUR 115.3 million and was thus 28.1 % higher than the EUR 90.0 million on the previous year's reporting date.

"The extraordinary strong order intake in the third quarter, especially in the areas of photomask equipment and microoptics, makes us very optimistic about the fourth quarter and beyond. In addition, the currently published investment budgets of the major contract manufacturers (OEMs) indicate that the new technological developments, above all the switch to the 5G mobile radio standard, are gaining momentum. The first concrete negotiations on production machines for 5G applications have already started. We expect a good demand for our machines and process solutions in the future, especially if we continue to invest in process optimizations with which we create specific "Unique Selling Points" (USP's). For this reason, we have also increased our investments in research and development in recent months," comments Dr. Franz Richter, CEO of SUSS MicroTec SE.

In the third quarter of 2019, SUSS MicroTec generated sales of EUR 37.1 million (previous year: EUR 38.6 million). EUR 131.1 million was reported for the first nine months of the current 2019 financial year, compared with EUR 132.8 million in the previous year. Based on the orders on hand and the inventory of machines ready for shipment, sales in fiscal 2019 are expected to be at the upper end of the already announced range of EUR 200 to 215 million. In the 2018 financial year, sales amounted to EUR 203.9 million. SUSS is thus impressively demonstrating that even in a year that is seen as a "down-turn year" in industry, the growth targets set out in the "SUSS 2025 Agenda" can be maintained. Weaknesses in individual market segments due to the economic situation were more than offset by extremely positive developments in other segments.

Due to the associated productivity losses in the third and fourth quarters, the very strong sales forecast for the fourth quarter will not be sufficient to achieve the EBIT margin previously targeted.  Contrary to expectations at the end of the first half of the year, no positive EBIT contributions were achieved in the third quarter. Some expected orders for pre-produced machines were not placed until the end of the third quarter, which will postpone delivery and sales recognition until the fourth quarter. Management currently expects the EBIT margin for 2019 as a whole to be between 4.0% and 5.0%. In the previous year, EBIT amounted to EUR 10.9 million, corresponding to an EBIT margin of 5.3 %.

"The decisive factor for the reduction of the EBIT margin for the 2019 financial year is, in particular, productivity losses in the first quarters with low capacity utilisation, which could not be made up in the third quarter as initially expected. Although the lower than planned sales in the third quarter will be largely offset in the coming weeks by overtime and the additional use of external resources, these measures will result in lower productivity. In addition, negative currency effects in the order of around EUR 1 million are having a negative impact on earnings," adds Robert Leurs, CFO of SUSS MicroTec SE.

As part of the "Agenda SUSS 2025", the ongoing program to make the company more efficient for the future and to cut costs, especially in the production process, will be systematically continued. "We are optimistic about the future and intend to improve our cost structure even as the economy recovers," said Dr. Franz Richter confidently.

The company will publish the final figures for the third quarter of 2019 as planned on November 6, 2019.

End of message

SUSS MicroTec SE
Maximilian Fischer
Investor Relations
Schleissheimer Strasse 90
85748 Garching, Deutschland
Tel.: +49 89 32007-161
Fax: +49 (0)89 32007-451
Email: maximilian.fischer@suss.com

04.11.2019 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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