STOCKHOLM – Mycronic reported second quarter net sales decreased 2% to SEK 1.06 billion (US$122.9 million). Based on constant exchange rates, net sales increased 6%.

EBIT declined 14.2% to SEK 241 million.  

Orders during the quarter were SEK 1 million, up 54%.

For the first six months of 2021, net sales increased 29% to SEK 2.4 billion. Based on constant exchange rates, the increase was 39%. EBIT rose 120% to SEK 739 million. Orders were down 3% to SEK 2.03 billion.

“The group’s order intake increased 54% during the quarter, driven by improvements in all of the divisions,” said Anders Lindqvist, president and CEO. “Former Assembly Solutions delivered an EBIT margin of 13%, which is above the full-year objective and a clear improvement compared with the preceding year. Our growth strategy of focusing our attention on attractive areas to complement and broaden our offering through carefully selected acquisitions resulted in Mycronic acquiring Luther & Maelzer in Germany. The transaction was completed on June 25, and the acquisition took place three years after Mycronic’s most recent acquisition, which was MRSI Systems in the US. As with MRSI, L&M will be included in the Global Technologies division. The company is a leading global developer, manufacturer and supplier of advanced equipment for electrical testing of PCBs and substrates. The addition of L&M broadens our offering and creates a platform in the field of electrical testing. The acquisition strengthens Mycronic generally and underlines the Global Technologies division’s focus on leading niche technologies, which have the potential to grow faster than the market as a whole.

“High flex and high volume delivered improved order intake, net sales and EBIT for the quarter. The market for high flex was characterized by strong demand from consumers and generally high demand for electronics. At the same time, the pandemic causes uncertainty regarding access to components and input goods, which could lead to our customers postponing investments and only focusing on necessary production equipment. Two factors that positively impacted demand for high volume’s products is that Chinese customers’ production is being moved back to China as an effect of the pandemic, and increased labor costs are driving investments in automation.

“In Global Technologies, camera modules to the automotive industry in the US, Europe and China demonstrated increased activity, although the Chinese market is characterized by intense local competition. In die bonding, the division gained new customers in the US and China in the second quarter, as well as a major order in China, which contributed to improved order intake for Global Technologies.

“Component shortages and higher prices for input goods have not affected our performance in the second quarter to any significant degree, but we still foresee that it can lead to higher costs and longer lead times going forward.

“The board of directors has revised its assessment of net sales for 2021 to SEK 4.5 billion at prevailing exchange rates, including the completed acquisition. The revision from the previous SEK 3.9 billion is mainly attributable to higher volumes and the acquisition of L&M. The goal for the accumulated EBIT margin in former Assembly Solutions of 10% stands firm, as does the long-term goal of achieving net sales of SEK 5 billion no later than 2023.”

Ed.: SEK 1 = US$0.12

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