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Mersen — Earnings Release 2013
Oct 29, 2013
1518_10-q_2013-10-29_9ffbbda3-2713-4230-a2e2-4a72ff486009.pdf
Earnings Release
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Mersen: 2013 third-quarter sales in line with our expectations for the year
Paris, October 29, 2013 - Mersen (Euronext FR0000039620 – MRN), a global expert in materials and equipment for extreme environments and for the safety and reliability of electrical equipment, recorded consolidated sales of €182.4 million for the 3rd quarter of 2013.
"Third-quarter performance is in line with our expectations for the year. We therefore confirm our 2013 outlook. We have noted a slight improvement in the solar energy market compared to the first half of the year. The picture is mixed: Europe remains stable while the Americas are growing moderately; in Asia, our activity is affected by an unfavorable basis effect, especially in the chemicals but the other markets are performing well," says Luc Themelin, Chairman of Mersen's Management Board.
2013 third-quarter sales
2013 third-quarter sales stood at €182.4 million. They included an unfavorable exchange rate impact – mainly depreciation of USD vs EUR - of close to €10 million. On a like-for-like basis compared to the same period last year, they are down by 3.2%.
| Q3 2013 | Q3 2012 | Organic Growth |
Total Growth |
|
|---|---|---|---|---|
| Materials | 72.7 | 82.7 | -9.2% | -12.1% |
| Electrical | 109.7 | 114.3 | +1.3% | -4.0% |
| Group total | 182.4 | 197.0 | -3.2% | -7.4% |
| Europe | 68.7 | 68.7 | +0.9% | +0.1% |
| Asia-Pacific | 37.0 | 51.0 | -21.4% | -27.5% |
| North America | 67.7 | 70.2 | +2.3% | -3.6% |
| Rest of the World | 9.0 | 7.1 | +28.6% | +26.8% |
| Group total | 182.4 | 197.0 | -3.2% | -7.4% |
Unaudited figures - Sales figures restated for businesses held for sale
Third-quarter sales are down slightly, by 2.9%, on a like-for-like basis compared to the 2nd quarter due to seasonality.
Paris, October 29, 2013
Sales in the Materials segment show an organic contraction of 9.2%: the process industries sector is contracting; sales in the solar energy market are also down on last year but up compared to the start of the year. Sales in the electronics market are also up on the start of the year. The chemicals market remains high in both Europe and North America.
Sales in the Electrical segment are up 1.3% on a like-for-like basis. The transportation sector is growing, driven by aeronautics in particular. The process industries and electronics sectors are experiencing moderate growth.
With economic conditions in Europe remaining lackluster, the Group benefited from the SABIC contract in this region, allowing it to post a slight increase of 0.9%.
The 21% decline in Asia is due mainly to the non-renewal of anti-corrosion system contracts for chemicals, where sales have moved to other geographic regions, and by the contraction in solar energy compared to last year, even though the trend is positive compared to the 1st half of the year.
The Americas posted 2.3% growth over the quarter, with electronics, wind energy and chemicals holding up well and a less favorable trend from process industries.
Sales for the first 9 months of 2013
Group sales stood at €559.4 million for the first 9 months of the year. They are down 7.2% on a like-forlike basis compared to the same period last year.
| 9 months 2013 |
9 months 2012 |
Organic Growth |
Total Growth |
|
|---|---|---|---|---|
| Materials | 226.3 | 259.2 | -11.5% | -12.7% |
| Electrical | 333.1 | 357.1 | -4.1% | -6.7% |
| Group total | 559.4 | 616.3 | -7.2% | -9.2% |
| Europe | 211.4 | 215.3 | -1.6% | -1.8% |
| Asia-Pacific | 115.1 | 160.8 | -25.2% | -28.5% |
| North America | 204.0 | 212.6 | -1.3% | -4.0% |
| Rest of the World | 28.9 | 27.6 | +4.8% | +5.0% |
| Group total | 559.4 | 616.3 | -7.2% | -9.2% |
Unaudited figures - Sales figures restated for businesses held for sale
Financial position
The Group's net financial debt level was stable compared to June 2013.
In July, Mersen also finalized the refinancing of committed credit facilities in China due to expire between September 2014 and February 2015 by arranging local committed bank credit lines with a total value of
RMB 525 million, i.e. about €65 million. At the end of this operation, Mersen had over €400 million in committed credit facilities, of which 50% are being used. The average term of utilized credit facilities is now close to 5 years.
Outlook
The Group confirms its forecasts for 2013 as published at end-July, i.e.:
- Sales down about 5% on a like-for-like basis
- EBITDA margin of between 13% and 13.5%
- Operating margin before non-recurring items of between 8% and 8.5%
Furthermore, the Group will generate higher operational cash flow in H2 than in H1.
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Financial calendar
2013 sales: January 29, 2014 after close of trading
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.
With 6,500 employees in over 40 countries, Mersen achieved consolidated sales of €811 million in 2012.
The Group is listed on NYSE Euronext Paris – Compartment B Visit our website www.mersen.com
Mersen Tel: +33 (0)1 47 03 68 10
Contact Press Contact
Véronique Boca Nicolas Jehly / Guillaume Granier VP, Financial Communication FTI Consulting Strategic Communications Tel: + 33 (0)1 46 91 54 40 Email: [email protected] / Email: [email protected] [email protected]