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Mersen — Earnings Release 2011
Jul 20, 2011
1518_iss_2011-07-20_82fe8223-c128-4d65-aa0a-0bc0a207e3db.pdf
Earnings Release
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Growth of 20% on a reported basis and organic growth of 16% during the first half of 2011
During the second quarter of 2011, Mersen posted consolidated sales of €218 million, up 17% on a like-for-like basis. On a reported basis, the increase also came to 17%, with the positive impact of acquisitions offsetting the negative currency effects.
Strong business growth was boosted by the positions acquired by the Group in upbeat markets in recent years, such as electronics, rail transportation and energy. In particular, the solar energy segment was a source of strong momentum, with sales remaining very strong after a record first quarter. The quarter was also marked by a recovery in chemicals/pharmaceuticals after a year of sluggish activity.
During the first six months of the year, interim sales came to €419 million, up 20% on a reported basis and up 16% like-for-like. Sales recorded by the Advanced Materials and Technologies segment came to €189 million during the first six months of the year. They rose by 20% on a like-for-like basis. The sales recorded by the Electrical Components and Technologies segment came to €230 million during the first six months of the year. This represented a 13% rise on a like-for-like basis.
| Sales | Q2 2011 (€ m) |
% change* Q2 2011/ Q2 2010 |
H1 2011 (€ m) |
% change* H1 2011/ H1 2010 |
|---|---|---|---|---|
| Advanced Materials and Technologies | 101 | +21% | 189 | +20% |
| Electrical Components and Technologies | 117 | +14% | 230 | +13% |
| Group total | 218 | +17% | 419 | +16% |
*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 €101 million during the second quarter. This represented an increase of 24% on a reported basis and of 21% on a likefor-like basis.
Sales growth in the photovoltaic market was stronger than in 2010. Until the end of June, it was again underpinned by major original equipment deliveries to the Chinese solar industry. The very upbeat conditions in the replacement market also contributed to growth.
Paris, July 20, 2011
The firm business trends seen during the first quarter in the process industries carried through into the second quarter, while sales to the electronics industry were again brisk in Asia.
Business trends picked up significantly during the quarter in the chemicals/pharmaceuticals market, especially in China and the phosphoric acid market. Orders again held up well.
The segment's first-class business trends were achieved in a broadly positive pricing environment.
Electrical Components and Technologies
The quarterly sales recorded by the Electrical Components and Technologies segment came to €117 million, up 11% on a reported basis and up 14% on a like-for-like basis.
Sales again held up well across all the segment's markets (energy, transportation, electronics and process industries) and in the three major geographical areas.
In the energy market, wind energy sales were again boosted by the development of the replacement market, while original-equipment sales recorded moderate growth. Solar energy sales maintained considerable momentum in North America and in Asia, while sales in Europe were slower than at the beginning of the year, especially in Italy.
As in Advanced Materials and Technologies, pricing conditions for the Electrical Components and Technologies segment were supportive.
Recent highlights
During the quarter, Mersen purchased the remainder of the share capital it did not already own of Mingrong Electrical Protection, a 51%-owned subsidiary since July 2008. Full ownership of MEP will help Mersen to harness synergies more rapidly by enhancing the operational efficiency and competitiveness of its manufacturing platform.
Mersen also signed a long-term agreement with Corning to manufacture ceramic continuous flow reactors for the specialty chemicals and pharmaceuticals sectors, as well as for the oil and gas industry. Under this agreement, Mersen will develop advanced technology ceramic chemical reactors for continuous flow systems via its Boostec subsidiary, which it acquired at the beginning of 2010. The first sales are expected during 2012.
Mersen's finances
The Group's debt has increased slightly by comparison with at year-end 2010. It has a significant amount of confirmed credit lines that have not been drawn down, providing it with great financial flexibility.
Paris, July 20, 2011
Outlook
Since the beginning of the year, Mersen's business trends have been boosted by the dynamic performance of most of its expanding markets and the geographical positioning adopted by the Group in recent years. Given these business trends, the Group's 2011 objectives for sales growth and operating margin before non-recurring items are likely to be revised up when it presents its interim results on August 31, 2011.
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Diary dates
Presentation of interim results: August 31, 2011 Third-quarter 2011 sales: October 25, 2011
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
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 40 Tél. +33 (0)1 44 82 46 34
Email : [email protected] Email: [email protected]