AI assistant
Mersen — Earnings Release 2014
Jan 29, 2015
1518_iss_2015-01-29_f73046cd-dc6b-4b22-9a71-54c517a05e16.pdf
Earnings Release
Open in viewerOpens in your device viewer
Sales of €731 million in 2014 Confirmed 2014 guidance of operating margin before non-recurring items Continued roll-out of the Transform plan
Paris, January 29, 2015 - Mersen (Euronext FR0000039620 – MRN), a global expert in electrical specialities and graphite-based materials, announced consolidated sales of €731 million for 2014.
Luc Themelin, Chairman of Mersen's Management Board declared "Mersen has announced 2014 sales close to the level of the previous year, in line with guidance. The past year was marked by the strength of our electronics and renewable energy markets (solar, wind), which managed to partly offset a chemicals market that was hit by the non-renewal of a major contract and weak demand. At the start of 2014, the Group also successfully integrated the Cirprotec business, which will contribute to the electrical segment's growth strategy. Mersen confirms its target for a slight improvement in its operating margin before nonrecurring items in 2014, built on the hard work of the operational teams. It is also thanks to the commitment of every single person that the Transform plan is being rolled out as scheduled. This plan will enable our Group to significantly increase its flexibility and operational efficiency."
2014 sales
2014 consolidated sales totaled €730.9 million, down 1.1% on the previous year, and 1.5% on a like-forlike basis. There was a negative exchange rate effect of €7.4 million, with the strengthening of the dollar at year-end partly offsetting the strong euro at the start of the year. Cirprotec made a €10.4 million contribution for the year. The Group posted growth of 2% on a like-for-like basis excluding the chemicals market, coming off a high base of comparison of the Sabic contract and hit by weak demand.
| (in millions of euros) | 2014 | 2013 | Total growth |
Organic growth |
|---|---|---|---|---|
| Materials segment | 280.0 | 300.3 | -6.8% | -6.6% |
| Electrical segment | 450.9 | 438.5 | 2.8% | 2.0% |
| Group total | 730.9 | 738.8 | -1.1% | -1.5% |
| Europe | 279.5 | 281.8 | -0.8% | -3.6% |
| Asia-Pacific | 161.3 | 156.9 | 2.8% | 3.6% |
| North America | 256.3 | 261.7 | -2.1% | -1.1% |
| Rest of the World | 33.8 | 38.4 | -11.9% | -9.5% |
| Group total | 730.9 | 738.8 | -1.1% | -1.5% |
2014 fourth quarter sales
Fourth quarter sales amounted to €184.6 million, up 2.9% on the same period the previous year, with a positive exchange rate effect of €6.9 million. On a like-for-like basis, they were down 2.5%.
| (in millions of euros) | Q4 2014 | Q4 2013 | Total growth |
Organic growth |
|---|---|---|---|---|
| Materials segment | 70.1 | 74.0 | -5.2% | -9.4% |
| Electrical segment | 114.4 | 105.5 | 8.5% | 2.4% |
| Group total | 184.6 | 179.4 | 2.9% | -2.5% |
| Europe | 68.0 | 70.3 | -3.4% | -7.6% |
| Asia-Pacific | 41.4 | 41.9 | -1.2% | -6.0% |
| North America | 67.2 | 57.7 | 16.5% | 8.0% |
| Rest of the World | 8.0 | 9.5 | -16.2% | -18.0% |
| Group total | 184.6 | 179.4 | 2.9% | -2.5% |
Unaudited figures
Sales in the Materials segment were down 9.4% organically, affected in particular by the non-renewal of the Sabic contract and the discontinuation of the sale of carbon steel equipment announced last October. Process industries, heavily dependent on the economic climate, were also down. On the other hand, the electronics business enjoyed strong growth, driven by the LED sector, and the solar sales increased compared to last year.
Sales in the Electrical segment rose 2.4% on a like-for-like basis. The energy and electronics markets saw the strongest growth, thanks in particular to power electronics projects. In the transportation market, business was driven by rail projects in Asia and ongoing deliveries to major aerospace suppliers. Process industries were down slightly.
Paris, January 29, 2015
In Europe, the decline was due to non-recurring contracts in chemicals (including Sabic). Excluding chemicals, business was buoyant in most countries, although France remains sluggish. In Asia, the decline is linked to non-recurring contracts in chemicals and wind energy. Business was otherwise brisk, driven in particular by a strong performance in South Korea. Finally, in the Americas, growth was sustained, at 8%, in the 2 segments, particularly in the electronics, wind and electrical distribution markets.
2014 guidance
The Group confirms its guidance of a slight increase in operating margin before non-recurring items for 2014 compared to 2013 (8.1% in 2013).
The Group also continues to roll out its Transform plan, in line with the initial targets. Operational transfers are ongoing and the teams remain committed to satisfying customer expectations. Non-recurring costs totaled €37 million for 2014, which took into account the Transform plan charges, in line with the guidance (€30 million) as well as the cost of settling the civil suit in the UK involving events prior to 1999.
---End---
Financial calendar
2014 Results: March 11, 2015 before market opening – Meeting at 10 AM
About Mersen
Global 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
Mersen Tel: +33 (0)1 47 03 68 10 Email: [email protected] [email protected]
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] /