Mycronic sees increase in order intake but decrease in sales
“During the third quarter, order intake showed a positive trend, with an increase of 68 percent, while a significantly less advantageous product mix for Pattern Generators led to reduced sales and EBIT,” says Mycronic's President and CEO, Anders Lindqvist, as the comments the company's third quarter.
Mycronic's order intake increased 68% to SEK 1.24 billion (EUR 124 million) during the third quarter, compared with SEK 739 million (EUR 74 million) during the same period last year. This increase is primarily attributable to Pattern Generators securing orders for six mask writers, but with Global Technologies also contributing to the increase. During the quarter, Pattern Generators delivered two systems, which was as many as in the same period last year. However, the Mycronic says that the product mix was significantly less advantageous, since the preceding year included the delivery of a Prexision 800 Evo. This is also said to be the reason that the company's net sales for the quarter declined 8% to SEK 986 million (EUR 98.6 millon), compared with SEK 1.06 billion (EUR 106 million) in 3Q20. And this despite the fact that the acquisition of atg L&M contributed SEK 141 million in net sales EBIT for the period declined to SEK 106 millon (EUR 10.6 million) from SEK 348 million (EUR 34.8 million) during the same period last year. “During the third quarter, order intake showed a positive trend, with an increase of 68 percent, while a significantly less advantageous product mix for Pattern Generators led to reduced sales and EBIT. We announced an acquisition within High Volume, which strengthens and broadens the division’s product portfolio and enables it to offer its customers more complete and attractive solutions. We also announced a divestment within Global Technologies, which will enable the division to focus on and invest in markets that are strategically more relevant. Both transactions are expected to be completed during the fourth quarter of 2021 or the first quarter of 2022,” says Anders Lindqvist, President and CEO in the company's third quarter report. The CEO continues to say that the shortage of components, raw materials as well as issues related to distribution logistics impacted the divisions to various extents during the quarter. “Pattern Generators was not impacted to any significant extent, while High Flex began to notice the effects of component shortages and higher transportation costs. For High Volume, increased delivery costs and higher prices for raw materials and certain components impacted the quarter, although there was no shortage of components. At the end of the quarter, power rationing was introduced in China, which may have a negative impact going forward. Global Technologies was affected by disruption in the supply chain and component shortages, creating challenges for deliveries during the fourth quarter. The situation led to customers postponing purchasing decisions in certain cases,” says Anders Lindqvist. For the full year of 2021, Mycronic expects that its net sales will be at a level of SEK 4.5 billion (EUR 450 million).