Siltronic significantly increased sales and earnings in fiscal year 2018
Munich, Germany, January 31, 2019 - Siltronic AG, one of the world’s leading manufacturers of hyper pure silicon wafers, showed an outstanding performance in 2018 and slightly exceeded the revenue target and profit expectations.
According to the preliminary and unaudited figures, sales of EUR 1,457 million were significantly higher year on year (2017: EUR 1,177.3 million). EBITDA came in at EUR 589 million, up about 67 percent year on year (2017: EUR 353.1 million). The EBITDA margin came in at roughly 40 percent (2017: 30.0 percent). In a very favorable market environment the company was able to increase the average selling prices again in 2018.
Preliminary earnings before interest and tax (EBIT) of around EUR 498 million more than doubled year on year (2017: EUR 235.7 million).
The ongoing execution of the cost reduction programs introduced back in 2010 enabled the company to compensate cost increases in the fiscal year 2018.
In 2018, Siltronic invested EUR 254 million in property, plant and equipment and intangible assets. Apart from a base capex of roughly EUR 90 million the company invested in additional 300 mm capacities and a new crystal pulling hall in Singapore. Siltronic also made some minor advance payments for production equipment which was already ordered for a capacity increase in 2020. The additional wafer capacity of both expansion steps in 2019 and 2020 has already been fully sold to customers based on long-term contracts.
The preliminary net cash flow of EUR 240 million nearly doubled compared to 2017 (EUR 124.8 million).
As a result, preliminary net financial assets increased to EUR 691 million (2017: EUR 342.1 million).
“2018 was a very successful year. Demand for our wafers was very strong as in 2017 and we were able to increase again the average selling prices,” said Dr. Christoph von Plotho, Chief Executive Officer of Siltronic AG.
Very strong sales in the fourth quarter of 2018
At around EUR 388 million of preliminary sales in Q4 2018, the company continued the very positive performance of the first 9 months of the year. Ongoing high capacity utilization and a sequential increase in prices contributed to this performance.
The company reported preliminary EBITDA of EUR 161 million in Q4 2018 driven by price increases compared to EUR 160.2 million in Q3. The preliminary EBITDA margin in Q4 2018 was around 41 percent (Q3 2018: 42.2 percent).
Macro-economic and political uncertainties influence market development in 2019
The market research institute IHS Markit currently anticipates that demand for silicon wafers for the semi-conductor industry will grow by roughly 4 percent in 2019.
According to Siltronic the underlying growth trend for silicon area is intact. However, expectations in the semiconductor industry are muted in 2019 due to the macroeconomic and political uncertainties. The company expects that 2019 will start cautiously, particularly in the memory and foundry business. However, logic, power applications and image sensors should stay strong.
The demand for wafers in Q1 2019 is slightly lower than in Q4 2018.
Following two outstanding years, Siltronic expects a more muted business development in 2019.
Siltronic AG – preliminary financial figures 2018 1)
in EUR million | 2018 Q4 | 2018 Q3 | 2018 Q2 | 2018 Q1 | 2017 Q4 | 2018 | 2017 |
Sales | 388 | 379,8 | 361,3 | 327,4 | 328,1 | 1.457 | 1.177,3 |
EBITDA | 161 | 160,2 | 146,0 | 122,3 | 120,9 | 589 | 353,1 |
EBITDA margin | 41% | 42,2% | 40,4% | 37,4% | 36,8% | 40% | 30,0% |
| EBIT | 139 | 138,0 | 124,1 | 96,6 | 91,1 | 498 | 235,7 |
| EBIT margin | 36% | 36,3% | 34,4% | 29,5% | 27,8% | 34% | 20,0% |
Capex in property, plant and equipment and intangible | 113 | 62,8 | 45,2 | 33,4 | 61,4 | 254 | 123,2 |
| Net cash flow | -32 | 93,0 | 67,1 | 112,4 | -4,6 | 240 | 124,8 |
in EUR million | Dec. 31, 2018 | Dec. 31, 2017 |
Net financial assets | 388 | 379,8 |
1) The results in this document for Q4 2018 and Full Year 2018 are preliminary and have not yet been approved by the Supervisory Board or audited by an external auditor. All preliminary figures have been rounded to the nearest million.
Upcoming dates
A comprehensive reporting with detailed disclosures will be provided on March 5, 2019 when the final results for 2018 will be published. The Executive Board of Siltronic AG will conduct a conference call with analysts and investors (in English only) on that day at 10:00 am (CET). This call will be streamed via Internet. The audio webcast will be available live as well as on demand on Siltronic's website.
March 5, 2019 Annual Report 2018
May 3, 2019 Q1 2019 quarterly statement
May 7, 2019 Annual General Meeting
July 25, 2019 Q2 2019 Interim Report
October 24, 2019 Q3 2019 quarterly statement
For the full version of this news release (incl. financial data), please download the PDF version.
This press release contains forward-looking statements based on assumptions and estimates of Siltronic’s Executive Board. Although we assume the expectations in these forward-looking statements are realistic, we cannot guarantee they will prove to be correct. The assumptions may harbor risks and uncertainties that may cause the actual figures to differ considerably from the forward-looking statements. Factors that may cause such discrepancies include, among other things, changes in the economic and business environment, variations in exchange and interest rates, the introduction of competing products, lack of acceptance for new products or services, and changes in corporate strategy. Siltronic does not plan to update the forward looking statements, nor does it assume the obligation to do so.
The contents of this press information refer equally to men and women. To aid readability, the male pronoun has been used (e.g. he/his).
