ASM INTERNATIONAL N.V. REPORTS THIRD QUARTER 2022 RESULTS
26 October 2022 - 03:00AM
ASM INTERNATIONAL N.V. REPORTS THIRD QUARTER 2022 RESULTS
Almere, The
NetherlandsOctober 25, 2022, 6 p.m.
CET
ASM International N.V. (Euronext
Amsterdam: ASM) today reports its third quarter 2022 operating
results (unaudited).
Q3 revenues at a new record high, Q3
orders impacted by new US export control regulations
FINANCIAL HIGHLIGHTS
EUR million |
Q3 2021 |
Q2 2022 |
Q3 2022 |
New orders |
624.5 |
942.7 |
675.5 |
YoY change % as
reported / at constant currencies |
206% / 209% |
83% / 73% |
8% / 1% |
Revenue |
432.9 |
559.5 |
609.8 |
YoY change % as
reported / at constant currencies |
38% / 38% |
36% / 30% |
41% / 33% |
Gross profit
margin % |
47.2% |
47.5% |
48.1% |
Operating
result |
117.3 |
147.6 |
159.9 |
Operating result
margin % |
27.1% |
26.4% |
26.2% |
Share in income
of investments in associates (excluding amortization intangible
assets resulting from the sale of ASMPT stake in 2013) |
27.6 |
26.9 |
19.6 |
Amortization
intangible assets (resulting from the sale of ASMPT stake in
2013) |
(3.1) |
(3.4) |
(3.6) |
Impairment of
investments in associates |
— |
— |
(321.4) |
Net earnings
(losses) |
128.9 |
160.4 |
(150.5) |
Normalized net earnings (excluding amortization intangible assets
resulting from the sale of ASMPT stake in 2013 and impairment) |
132.0 |
163.8 |
174.6 |
- New orders of €676 million for the third quarter 2022 have been
adjusted to reflect the expected negative impact of the recent US
export restrictions to China. The new orders increased by 1% at
constant currencies compared to the same period last year (8% as
reported).
- Year-on-year revenue growth for the third quarter 2022 was 33%
at constant currencies (41% as reported).
- Gross profit margin of 48.1% in the third quarter 2022 was
slightly higher compared to 47.2% in the same quarter last year
caused by a stronger mix.
- Operating result for the third quarter 2022 improved from €117
million last year to €160 million this year driven again by strong
revenue growth, which was partly offset by an increase in operating
expenses.
- Net earnings included a non-cash impairment charge of €321
million to account for the reduced market valuation of the stake in
ASMPT.
- Normalized net earnings for the third quarter 2022 were €175
million, up from €132 million in Q3 last year, and included a
translation gain of €25 million compared to a translation gain of
€13 million in Q3 2021 and a translation gain of €26 million in Q2
2022.
COMMENT
“ASM continued its strong performance in the
third quarter with again record-high revenue,” said Benjamin Loh,
President and Chief Executive Officer of ASM International.
“Revenue increased by 33% at constant currencies to €610 million in
Q3 2022, slightly above the guided range of €570-600 million.
Supply chain conditions remained challenging in Q3 and are expected
to show moderate improvement in Q4. I want to thank the ASM team
and our suppliers for their continued commitment and solid
execution. Supported by a 36% increase in operating profit, we
generated again a strong free cash flow of €122 million.
We expect the new export regulations that were
announced by the US government on October 7, 2022, to negatively
impact our business in China. Our equipment sales in China, at 16%
of our total revenue in the first nine months of 2022, have been a
growing part of our business with a strong contribution to group
profitability. Based on a conservative scenario, we expect the new
export restrictions will affect more than 40% of our sales in
China.
Taking a prudent view, we decided to reduce the
Q3 bookings and related backlog with the impacted orders from China
that were received in Q3 and prior quarters and still to be shipped
in the coming quarters. Our total bookings dropped to €676 million
in Q3 compared to a record level of €943 million in Q2. Excluding
the reduction of impacted orders from China, the decrease in our Q3
orders compared to Q2 would have been much more moderate. The
negative impact from new export regulations is also reflected in
our guidance for Q4 sales.”
Taking into account the guidance for Q4, ASM is
on track for strong growth in 2022, its sixth consecutive year of
double-digit growth, and is expected to clearly outperform the
wafer fab equipment (WFE) market in 2022. During the third quarter,
the semiconductor end-market further slowed down, with significant
declines in the PC and smartphone segments. Combined with an
expected deceleration in global economic growth WFE spending is
forecasted to be down in 2023, in particular the memory segment.
While it is too early to provide guidance for 2023, we believe our
company is in good shape, on the back of an expected robust backlog
by year-end, our strong position in the leading-edge logic/foundry
segment, and solid traction with newly introduced products and
applications.”
OUTLOOK
For Q4, at constant currencies, we expect sales
of €600-630 million, which includes a negative impact from the new
US export regulations, as explained above. The revenue guidance for
Q4 also includes the revenue contribution from LPE, following the
closure of the acquisition on October 3, 2022. Our expectation that
we will finish the year with a continued elevated backlog is
unchanged. WFE spending is now expected to increase by a high
single-digit percentage in 2022.
About ASM International
ASM International N.V., headquartered in Almere,
the Netherlands, and its subsidiaries design and manufacture
equipment and process solutions to produce semiconductor devices
for wafer processing, and have facilities in the United States,
Europe, and Asia. ASM International's common stock trades on the
Euronext Amsterdam Stock Exchange (symbol ASM). For more
information, visit ASMI's website at www.asm.com.
Cautionary Note Regarding Forward-Looking
Statements: All matters discussed in this press release, except for
any historical data, are forward-looking statements.
Forward-looking statements involve risks and uncertainties that
could cause actual results to differ materially from those in the
forward-looking statements. These include, but are not limited to,
economic conditions and trends in the semiconductor industry
generally and the timing of the industry cycles specifically,
currency fluctuations, corporate transactions, financing and
liquidity matters, the success of restructurings, the timing of
significant orders, market acceptance of new products, competitive
factors, litigation involving intellectual property, shareholders
or other issues, commercial and economic disruption due to natural
disasters, terrorist activity, armed conflict or political
instability, changes in import/export regulations, epidemics and
other risks indicated in the Company's reports and financial
statements. The Company assumes no obligation nor intends to update
or revise any forward-looking statements to reflect future
developments or circumstances.
This press release contains inside information
within the meaning of Article 7(1) of the EU Market Abuse
Regulation.
ASM will host the quarterly earnings conference
call and webcast on Wednesday, October 26, 2022, at 3:00 p.m.
CET.
Conference call participants should pre-register using this link
to receive the dial-in numbers and a personal PIN, which are
required to access the conference call.
A simultaneous audio webcast, and replay will be
accessible at
https://www.asm.com/investors/webcasts-presentations/2022/third-quarter-earnings.
CONTACT
Investor and media contact:
Victor BareñoT: +31 88 100 8500E: investor.relations@asm.com
- 20221025 - Financial results Q3 2022
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