MERSEN (EPA:MRN) - Mersen : Like-for-like growth of 11% in the first quarter of 2018
Transparency directive : regulatory news
25/04/2018 17:40
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PRESS RELEASE
MERSEN: LIKE-FOR-LIKE GROWTH OF 11% IN THE FIRST QUARTER OF 2018
* POSITIVE MOMENTUM, IN LINE WITH EXPECTATIONS FOR THE PERIOD
* REMARKABLE PERFORMANCE IN SOLAR POWER AND ELECTRONICS MARKETS
* STRONG GROWTH IN THE THREE MAJOR GEOGRAPHIC AREAS
PARIS, APRIL 25TH, 2018 - Mersen (Euronext FR0000039620 - MRN), a global expert
in electrical power and advanced materials, has reported consolidated sales of
EUR209 million for the first quarter of 2018.
Luc Themelin, Mersen's Chief Executive Officer, commented: "In line with
year-end 2017, we are continuing to benefit in every way from Mersen's strong
position. The Group enjoyed very strong growth in its three major geographic
areas, with Asia continuing to perform exceptionally well. Our expanding
markets in renewable energies, electronics and aeronautics contributed to the
robust first-quarter performance, with nearly 50% growth in solar. The Group
has once again proved it is agile, responsive and efficient in meeting market
demand.
We also finalized several acquisitions, acquiring the remaining capital of
Cirprotec in the power quality sector, purchasing a stake in start-up Caly
Technologies, and acquiring Idealec, which will allow us to consolidate our
position in the power electronics market."
FIRST QUARTER 2018 SALES
Mersen reported consolidated sales of EUR209 million for the first quarter of
2018, up 11% like-for-like. As expected, the currency effect was negative,
primarily due to the depreciation of the US dollar, resulting in reported
growth of 3.3%.
(in millions of euros) Q1 2018 Q1 2017 Like-for-like Scope Currency Reported
restated growth effect effect growth
Advanced Materials 116.0 111.1 11.9% -7.5% 4.4%
Electrical Power 92.6 90.8 10.0% -8.0% 2.0%
Europe 73.1 68.8 7.3% -1.1% 6.2%
Asia-Pacific 58.4 52.8 18.8% -8.1% 10.7%
North America 69.6 71.9 10.4% -13.6% -3.2%
Rest of the world 7.5 8.4 -1.3% -9.4% -10.7%
Group Total 208.6 201.9 11.0% 0.0% -7.7% 3.3%
Like-for-like sales in the Advanced Materials segment rose by 11.9%
year-on-year to end the quarter at EUR116 million. Every market contributed to
growth, particularly solar, aeronautics, electronics and process industries.
Business in the chemicals market increased at a more moderate rate, but order
levels are encouraging.
Electrical Power sales came to EUR93 million for the quarter, up 10%
like-for-like. Growth was particularly dynamic in solar and power electronics.
Electrical distribution sales experienced moderate growth.
In Europe, growth was significant in the Electrical Power segment, driven by
several projects in power electronics. Performance was significant in France
across all market segments. The Group enjoyed an exceptional performance in
Asia, with organic growth of close to 19%. Business was especially brisk in
China and South Korea, bolstered by solar, electronics and process industries.
Lastly, strong growth returned in North America, thanks to the electronics and
process industries markets, especially the oil industry.
SUBSEQUENT EVENTS
Mersen acquired the remaining capital of Cirprotec following acquisition of a
majority stake in February 2014. The operation allows Mersen to accelerate the
development of surge protection devices and solutions in high-potential markets
such as LED lighting, solar power and EV charging, as well as in growth
countries, particularly in Asia.
Mersen also acquired a 49% stake in CALY Technologies, a Lyon-based start-up
company specializing in silicon carbide (SiC) semiconductor devices along with
proven experience in protection functions. Thanks to this investment, Mersen is
able to expand its portfolio of over-current, surge protection and current
limiting products, while developing its expertise in semiconductor
technologies.
Mersen acquired Idealec, a designer and manufacturer of laminated bus bars. The
new acquisition reinforces the Electrical Power segment's position as a leader
on the laminated bus bar market and expands its client portfolio, particularly
in the energy and rail sectors. It will also strengthen the Group's position as
a preferred partner for the power electronics market.
OUTLOOK FOR 2018
The first quarter has met the Group's expectations of sustained, positive
momentum in its buoyant markets at the beginning of the year. Mersen can
therefore confirm its objectives for 2018, as announced in its 2017 results
published on March 7, with like-for-like sales growth of between 3% and 6% for
a current operating margin of between 9.6% and 10.1% (9.2% in 2017).
GLOSSARY
Like-for-like growth: determined by comparing sales for the year with sales for
the previous year, restated at the current year's exchange rate, excluding
acquisitions and/or disposals.
Q1 2017 restated: first-quarter 2017 sales have been restated to reflect the
disposal of the high voltage switch and contactor business in October 2017 and
the impact of IFRS 15:
Q1 2017 (in millions of euros) IFRS 15 Disposals
Advanced Materials
Electrical Power -0.3 -1.3
Europe -1.0
Asia-Pacific -0.2 -0.2
North America -0.1 -0.1
Rest of the world
Group Total -0.3 -1.3
The restatement of other quarters as a result of IFRS 15 will be on the same
scale.
FINANCIAL CALENDAR
First-half 2018 results: July 30, 2018 after market close
ABOUT MERSEN
A global expert in electrical power and advanced materials, Mersen designs
innovative solutions to address its clients' specific needs to enable them to
optimize their manufacturing performance in sectors such as energy,
electronics, transportation, chemicals & pharmaceuticals and process
industries.
Mersen, with 6,400 employees working across 35 countries, recorded sales of
EUR809 million in 2017.
MERSEN IS LISTED ON EURONEXT PARIS - COMPARTMENT B
INVESTOR AND ANALYST CONTACT MEDIA RELATIONS
Véronique Boca Stanislas Mulliez / Guillaume Granier
Vice-President, Communication
Mersen FTI Consulting Strategic
Communications
Tél. + 33 (0)1 46 91 54 40 Tél. +33 (0)1 47 03 68 10
Email : dri@mersen.com Email :
stanislas.mulliez@fticonsulting.com /
guillaume.granier@fticonsulting.com
WWW.MERSEN.COM