Almere, The Netherlands
February 25, 2020, 6 p.m. CET
ASM International N.V. (Euronext Amsterdam: ASM) today reports its fourth quarter 2019 operating results (unaudited) in accordance with IFRS.
FINANCIAL HIGHLIGHTS
| EUR million | Q4 2018 | Q3 2019 | Q4 2019 |
| New orders | 301.6 | 291.8 | 429.0 |
| Net sales | 254.7 | 271.2 | 400.6 |
| Gross profit margin % | 41.7% | 42.4% | 51.5% |
| Operating result | 46.2 | 50.6 | 130.9 |
| Result from investments (excluding amortization intangible assets resulting from the sale of ASMPT stake in 2013) | 6.1 | 6.5 | 6.4 |
| Amortization intangible assets (resulting from the sale of ASMPT stake in 2013) | (2.4) | (3.5) | (3.5) |
| Net earnings | 43.7 | 53.5 | 104.5 |
| Normalized net earnings (excluding amortization intangible assets resulting from the sale of ASMPT stake in 2013) | 46.1 | 56.9 | 108.0 |
- New orders were €429 million. Excluding €56 million related to the arbitration settlement, new orders were €373 million.
- Net sales for the fourth quarter 2019 were €401 million. Excluding €56 million related to the arbitration settlement, net sales were €345 million, an increase of 27% compared to the previous quarter.
- Gross profit margin was 51.5% in Q4 2019, and 43.6% excluding the arbitration settlement compared to 42.4% in the previous quarter.
- Operating result increased to €131 million. Excluding the arbitration settlement operating result was €75 million and increased €24 million compared to the previous quarter.
- Normalized net earnings, including the arbitration settlement, for the fourth quarter 2019 increased by €51 million compared to Q3 2019. Besides the positive impact of the arbitration settlement net earnings in Q4 were negatively impacted by €14 million currency translation results. Q3 included €14 million positive currency translation results.
COMMENT
Commenting on the results, Chuck del Prado, President and Chief Executive Officer of ASM International said:
"In Q4 we realized sales of €401 million, 48% above the Q3 level. This included the proceeds of the arbitration settlement. Excluding those proceeds our sales still increased with 27% compared to Q3, reaching again a new record level, driven by continuous high demand in the logic/foundry segment. 2019 has been a strong year for our company. For the year as a whole our sales, excluding the proceeds of the IP settlement, increased with 37%, in a Wafer Fab Equipment market which showed an estimated high single digit percentage decline in 2019. Our Q4 order intake, at €373 million excluding the arbitration settlement, was well above our original guidance of €290-310 million driven by exceptionally strong orders from our logic/foundry customers. Our cash position in the quarter, despite nearly fully executing our €100 million share buyback program and the pay out of €1 per share interim dividend, increased further and stood at nearly €500 million at the end of the year. Hence, as part of our commitment to use excess cash for the benefit of our shareholders, besides increasing our regular dividend with 50%, we also plan to pay out an extra-ordinary dividend and plan to start a new €100 million share buyback program."
OUTLOOK
For Q1 we expect sales of €310-330 million while for Q2 sales of €330-350 million are expected, both on a currency comparable level. Q1 bookings, on a currency comparable level, are expected to be in the range of €310-330 million.
We expect logic/foundry to continue its strength as we move into 2020. Based upon this we expect the Wafer Fab Equipment market in 2020 to be up with a high single digit percentage, with upside to double digits depending on the strength and timing of memory spending recovery.
SHARE BUYBACK PROGRAM
The €100 million share buyback program, announced on July 23, 2019 and started on November 1, 2019, was completed on February 17, 2020. In total we repurchased 984,279 shares at an average price of €101.60 under this program.
ASMI announces today that its Management Board authorized a new repurchase program of up to €100 million of the Company's common shares within the 2020 time frame. This buyback program will be executed by intermediaries and will end as soon as the aggregate purchase price of the common shares acquired by ASMI has reached €100 million.
This repurchase program is part of ASMI's commitment to use excess cash for the benefit of its shareholders.
DIVIDEND PROPOSAL AND TREASURY SHARES
ASMI will propose to the forthcoming Annual General Meeting of Shareholders (AGM) 2020, to declare a regular dividend of €1.50 per common share over 2019. The regular dividend increases 50% compared to the dividend paid over 2018. After the payment of the interim dividend of €1.00 per common share on November 12, 2019, the remaining regular dividend payment will be €0.50 per common share. As part of its commitment to use excess cash for the benefit of its shareholders, ASMI will also propose to the forthcoming AGM 2020 to declare an extra-ordinary dividend of €1.50 per common share. This will bring the total dividend paid to shareholders over 2019 to €3.00 per common share.
As of February 25, 2020, ASMI held 2.4 million treasury shares, which is more than sufficient to cover our outstanding options and restricted/performance shares. Hence ASMI will propose to the AGM 2020, to be held on May 18, 2020, to cancel 1.5 million treasury shares.
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 Wednesday February 26, 2020 at 15:00 Continental European Time (9:00 a.m. - US Eastern Time).
The teleconference dial-in numbers are as follows:
- United States: +1 917 720 0178
- International: +44 (0) 844 493 3857
- The Netherlands: +31 (0)20 715 7366
- Access Code: 7598574
A simultaneous audio webcast and replay will be accessible at www.asm.com.
CONTACT
Investor contact:
Victor Bareño
T: +31 88 100 8500
E: victor.bareno@asm.com
Media contact:
Ian Bickerton
T: +31 625 018 512
