MERSEN "Business trends during the quarter showed signs of improvement in the Asia-Pacific region and more broadly in the solar and electronics markets. As a result, the Group recorded stable quarterly sales despite the persistently challenging activity in chemicals. Given the macroeconomic situation, the Group is now expected to post a small organic contraction in its full-year sales. Nevertheless, the major emphasis placed by teams on boosting production efficiency will keep the Group's current operating margin in line with our initial forecasts", commented Luc Themelin, Chairman of Mersen's Management Board.
Third-quarter 2014 salesGroup sales rose by 1.0% compared with the third quarter of 2013 on a reported basis, taking into account a mildly unfavorable currency effect (-0.2%) offset by the positive impact of Cirprotec's consolidation. They declined by 0.3% on a like-for-like basis. Excluding the chemicals market (which includes the Sabic contract), the Group posted growth of over 2% during the quarter on a like-for-like basis.
(in millions of euros) | Q3 2014 | Q3 2013 | total growth | organic growth |
Materials segment | 70.3 | 72.7 | -3.3% | -3.8% |
Electrical segment | 113.9 | 109.7 | 3.8% | 2.0% |
Group total | 184.2 | 182.4 | 1.0% | -0.3% |
Europe | 68.5 | 68.7 | -0.3% | -3.3% |
Asia-Pacific | 40.6 | 37.0 | 9.8% | 8.5% |
North America | 65.8 | 67.7 | -2.7% | -2.1% |
Rest of the world | 9.3 | 9.0 | 2.9% | -0.3% |
Group total | 184.2 | 182.4 | 1.0% | -0.3% |
Unaudited figures
1/3
Paris, October 29, 2014
In Europe, the situation remains mixed. Germany continues to enjoy brisk trends in the solar energy (polysilicon) and transportation markets, but to a lesser extent than in the first half of the year. In contrast, business trends remained gloomy in France. Excluding chemicals, the region's organic growth came to over 1% during the quarter.
Demand was brisk in Asia, particularly in solar and wind energy. Sales in the South Korean electronics market were also strong.
Lastly, the top-line contraction in the Americas was mainly attributable to a slowdown in the chemicals
sector, especially in business linked to shale gas extraction, and to a lesser extent, to sluggish trends in electrical distribution. Conversely, trends were buoyant in electronics and wind energy.
A lackluster chemicals market was mainly to blame for the organic decline in the Materials segment (fall of 3.8%). Excluding the chemicals market, organic growth was 2.8%. The Group reaped the benefits of brisk growth in the solar energy and electronics markets, while process industries contracted.
Group sales totaled €546.3 million in the first nine months of the year. This represented a decline of 2.3%
compared with the same period in the previous year on a reported basis, and of 1.1% like-for-like.
(in millions of euros) | 9 months 2014 | 9 months 2013 | total growth | organic growth |
Materials segment | 209.8 | 226.3 | -7.3% | -5.5% |
Electrical segment | 336.5 | 333.1 | +1.0% | +1.9% |
Group total | 546.3 | 559.4 | -2.3% | -1.1% |
Europe | 211.5 | 211.4 | 0.0% | -2.2% |
Asia-Pacific | 119.9 | 115.1 | +4.2% | +7.0% |
North America | 189.0 | 204.0 | -7.3% | -3.8% |
Rest of the world | 25.9 | 28.9 | -10.5% | -6.7% |
Group total | 546.3 | 559.4 | -2.3% | -1.1% |
unaudited figures
Financial positionGroup debt at September 30, 2014 increased slightly on the June 30, 2014 level, owing primarily to the impact of currency effects. This also included €9 million related to the payment of the dividend.
2/3
Paris, October 29, 2014
OutlookIn the fourth quarter, weak sales in chemicals are likely to be partially offset by a healthy performance in the solar and electronics markets, and the Group should benefit from a positive currency effect. However, Mersen expects the lackluster economic environment to take a toll on its top line in the final quarter of the year.
Accordingly, Mersen now forecasts a small organic contraction in its full-year sales, rather than the small increase it had previously anticipated. It nevertheless reiterates its target of a small improvement in the operating margin before non-recurring items compared with 2013.
Furthermore, the final decisions concerning the Transform Plan have now been finalized. In addition to the projects in progress in the United States and in Europe, the Group has decided to halt its production of stainless steel equipment for the chemicals market. Mersen is set to downsize the relevant site in China. This move is included in the €30 million in costs already released by the Group for the Transform Plan as a whole.
---End---
Financial calendar
2014 sales: January 29, 2015 after market closing
About MersenGlobal expert in electrical specialties and graphite-based materials, Mersen designs innovative solutions to address its clients' specific needs to enable them to optimize their manufacturing process in sectors such as energy, transportation, electronics, chemical, pharmaceutical and process industries.
The Group is listed on NYSE Euronext Paris - Compartment B
Visit our website www.mersen.com
Contact Press ContactVéronique Boca Nicolas Jehly / Guillaume Granier
VP, Financial Communication FTI Consulting Strategic Communications
Mersen Tel: +33 (0)1 47 03 68 10
Tel: + 33 (0)1 46 91 54 40 Email: mailto:nicolas.jehly@fticonsulting.comnicolas.jehly@fticonsulting.com/ Email: dri@mersen.com guillaume.granier@fticonsulting.com
3/3
|
distributed by
|
