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Mersen — Earnings Release 2010
Oct 20, 2010
1518_10-q_2010-10-20_7e2e71fa-8e1f-4190-ab28-a3cc135ef3e2.pdf
Earnings Release
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Paris, October 20, 2010
Mersen third-quarter sales rise by 21%*
In the third quarter of 2010, Mersen posted consolidated sales of €183 million, up 21% on a like-for-like basis, i.e. at comparable scope and constant exchange rates. On a reported basis, sales increased 34% due to a positive currency effect and the consolidation of Lumpp and Mingrong.
Both of the Group's two business segments reported strong growth, and sales were particularly buoyant in Asia and North America. The acceleration in the Group's sales for the photovoltaic industry was confirmed.
At the end of September, cumulative sales for the first 9 months of the year came to €531m, up 21% on a reported basis and 12% on a like-for-like basis.
| Sales | Q3 2010 (€m) |
% change* with year earlier period |
First 9 months of 2010 (€m) |
% change* with year earlier period |
|---|---|---|---|---|
| Advanced Materials and Technologies |
77 | +22% | 227 | +10% |
| Electrical Components and Technologies |
106 | +20% | 304 | +13% |
| Group total | 183 | +21% | 531 | +12% |
* on a like-for-like basis, i.e. at comparable scope and constant exchange rates - Unaudited data
Advanced Materials and Technologies
The Advanced Materials and Technologies segment posted sales of €77 million in the third quarter, up 33% on a reported basis and 22% on a like-for-like basis.
Business was buoyant in the photovoltaic market with stronger sales growth than in the previous quarter. Sales remained brisk for the electronics market and process industries.
Sales for the Chemicals and Pharmaceuticals industries declined in the third quarter after a resilient performance in 2009. Nonetheless, new orders were on the rise, particularly in the phosphoric acid market.
At the end of September 2010, the Advanced Materials and Technologies segment posted 9 month sales of €227 million, up 10% on a like-for-like basis.
Paris, October 20, 2010
Electrical Components and Technologies
The Electrical Components and Technologies segment posted quarterly sales of €106 million, up 34% on a recorded basis and 20% on a like-for-like basis.
Sales remained brisk in power electronics and the solar market. Business continued to be upbeat in the process industries as well.
The quarter was also marked by robust sales by electrical protection distributors in North America, thanks notably to market share gains.
In wind power, the original equipment market was still fairly sluggish.
At the end of September 2010, the Electrical Components and Technologies segment posted 9 month sales of €304 million, up 13% on a like-for-like basis.
Recent highlights
In September, the Group refinanced its syndicated loan arranged in China for the same amount of RMB500 million with an extended maturity date of 2013. This move fits within the Group's growth strategy in Asia.
Mersen's financial situation
The Group's debt increased compared to 31 December 2009 owning notably to a negative currency effect, acquisitions and the payment of a European Commission fine dating back to 2003 and confirmed on appeal in late 2009. The settlement has already been accounted for and will not have any impact on the Group's results. The Group holds a significant amount of unused confirmed credit lines.
Outlook
Mersen confirmed its 2010 forecasts: double-digit organic sales growth and an operating margin before non-recurring items at least equal to the 9.9% margin posted in the first half of 2010.
Save the date: Fourth Quarter Sales 2010: January 25, 2011 (after market close)
Paris, October 20, 2010
About Mersen
Global expert in materials and solutions for extreme environments as well as in the safety and reliability of electrical equipment, 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 and is included in the following indices: CAC Mid100, SBF120 and Next 150.
Visit our website www.mersen.com
Analyst and Investor Contact Press Contact
Stéphanie Atellian Vilizara Lazarova VP Investor Relations Mersen Publicis Consultants Tel. + 33 (0)1 46 91 54 49 Tel : +33 (0)1 57 32 86 46
Email : [email protected] Email: [email protected]