Siltronic AG: Siltronic lowers the forecast of financial year 2019
Ad hoc announcement / Disclosure of an inside information according to Article 17 MAR
Siltronic lowers the forecast of financial year 2019
Munich, Germany, April 10, 2019 - As expected, Siltronic AG's sales reached approximately 354 million euro in Q1 2019. The EBITDA margin was approximately 36 percent. Siltronic expects Q2 2019 to be significantly weaker than Q1 2019.
Siltronic previously had put its guidance under the condition that order intake would need to revive meaningfully in the second half of 2019. Because of the general economic slowdown and geopolitical uncertainties as well as ongoing inventory corrections in the whole value chain, the timing of a market rebound is, however, not visible.
Therefore, the Executive Board of Siltronic AG has decided today to adjust the forecast of financial year 2019.
The Executive Board expects that the wafer area sold in 2019 will be significantly lower than in 2018. This is due to a strongly decreasing demand in smaller wafers with a diameter of up to 150 mm and a noticeable decrease in 200 mm loading. Loading in 300 mm has also been coming down.
With ASP 2019 being slightly higher compared to 2018, the Executive Board assumes the following development for the full year 2019:
- Depending on the timing of a market recovery and on exchange rate effects, sales 2019 will be around 5 percent to 10 percent below the previous year (prior: in the region of the previous year).
- EBITDA margin should be between 33 percent and 37 percent (prior: slightly below prior year).
- EBIT will correspondingly be significantly (prior: a good 10 percent) below previous year.
- Net cash flow will be clearly positive but decrease by approximately EUR 150 million (prior: approximately EUR 100 million) compared to 2018, with a subsequent significant increase again in 2020.
- Earnings per share will be significantly (prior: slightly) below prior year.
The Executive Board has already taken bold actions in response to the increasing challenges and the number of temporary workers has been significantly reduced in view of the lower capacity utilization. The continuous cost reduction programs which have been introduced in 2010 will be pursued with full force.
Irrespective of the current market weakness, the Executive Board of Siltronic AG is convinced that the underlying growth drivers for wafer demand such as digitization and e-mobility are intact.
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This adhoc announcement contains statements related to our future business and financial performance and future events or developments involving Siltronic that may constitute forward-looking statements. These statements may be identified by words such as "expect," "look forward to," "anticipate" "intend," "plan," "believe," "seek," "estimate," "will," "project" or words of similar meaning. Such statements are based on the current expectations and certain assumptions of the Siltronic-management, of which many are beyond the control of Siltronic. These are subject to a number of risks, uncertainties and factors. Should one or more of these risks or uncertainties materialize, or should underlying expectations not occur or assumptions prove incorrect, actual results, performance or achievements of Siltronic may (negatively or positively) vary materially from those described explicitly or implicitly in the relevant forward-looking statement. Siltronic neither intends, nor assumes any obligation, to update or revise these forward-looking statements in light of developments which differ from those anticipated.
This document includes - in the applicable financial reporting framework not clearly defined - supplemental financial measures that are or may be alternative performance measures. These supplemental financial measures should not be viewed in isolation or as an alternative to measures of Siltronic's net assets and financial positions or results of operations as presented in accordance with the applicable financial reporting framework in its Consolidated Financial Statements. Other companies that report or describe similarly titled alternative performance measures may calculate them differently. Explanations of financial measures used can be found in the Annual Report 2018 of Siltronic AG.