ASM INTERNATIONAL N.V. REPORTS FOURTH QUARTER 2022 RESULTS
Almere, The Netherlands
February 28, 2023, 6 p.m. CET
ASM International N.V. (Euronext Amsterdam: ASM) today
reports its fourth quarter 2022 operating results
(unaudited).
ASM finishes the year with strong
bookings and new record high revenue
FINANCIAL HIGHLIGHTS
€ million |
Q4 2021 |
Q3 2022 |
Q4 2022 |
New orders |
644.9 |
675.5 |
828.6 |
YoY change% as
reported / at constant currencies |
70% / 70% |
8% / 1% |
28% / 26% |
Revenue |
491.3 |
609.8 |
724.8 |
YoY change% as
reported / at constant currencies |
42% / 40% |
41% / 33% |
48% / 42% |
Gross profit
margin% |
47.0% |
48.1% |
46.4% |
Normalized gross
profit margin% -1 |
47.0% |
48.1% |
46.9% |
Operating
result |
131.3 |
159.9 |
181.9 |
Operating result
margin% |
26.7% |
26.2% |
25.1% |
Normalized
operating result -1 |
131.3 |
160.4 |
189.8 |
Normalized
operating result margin% -1 |
26.7% |
26.3% |
26.2% |
Share in income
of investments in associates (excluding amortization intangible
assets resulting from the sale of ASMPT stake 2013) |
25.8 |
19.6 |
8.3 |
Amortization
intangible assets (resulting from the sale of ASMPT stake in
2013) |
(3.2) |
(3.6) |
(3.5) |
Impairment of
investments in associates |
— |
(321.4) |
106.1 |
Net earnings
(losses) |
134.9 |
(150.5) |
236.6 |
Normalized net earnings -2 |
138.1 |
174.9 |
142.4 |
- - Excluding amortization of fair value adjustments from
respective purchase price allocations (before tax)
- - Excluding amortization of fair value adjustments from
purchase price allocations (net of tax), change in fair value of
the contingent consideration (LPE earn-out) and impairment of
ASMPT
- New orders of €829 million for the fourth quarter 2022
increased by 26% at constant currencies compared to the same period
last year (28% as reported). The increase in new orders is partly
driven by the acquisition of LPE, which experienced exceptionally
strong orders in Q4, partially for delivery in the second half of
2023.
- Year-on-year revenue growth for the fourth quarter 2022 was 42%
at constant currencies (48% as reported).
- Normalized gross profit margin of 46.9%, excluding PPA expenses
in the fourth quarter 2022, was similar to 47.0% in the same
quarter last year. Including PPA expenses, gross margin was 46.4%
in Q4 2022.
- Normalized operating result for the fourth quarter 2022,
excluding PPA expenses, improved from €131 million last year to
€190 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 reversal of €106 million of
the Q3 impairment of ASMPT, to account for the partial recovery
market valuation of the stake in ASMPT.
- Net earnings include a negative impact of €8 million (net of
tax) relating to PPA expenses. Normalized net earnings for the
fourth quarter 2022 were €142 million, up from €138 million in Q4
last year, and included a translation loss of €36 million compared
to a translation gain of €7 million in Q4 2021 and a translation
gain of €25 million in Q3 2022.
- Details of (estimated) amortization and earn-out expenses (PPA
expenses) relating to the acquisition of LPE are found in Annex
2.
COMMENT
“ASM delivered a strong performance yet again in
2022. Revenue increased 33% at constant currency, our sixth
consecutive year of double-digit growth. Our ASM team went again
the extra mile to meet customer requirements despite the
challenging supply chain conditions in 2022,” said Benjamin Loh,
President and CEO of ASM. “In the fourth quarter, we realized
revenue of €725 million, including record-high sales in the
logic/foundry segment. As already announced on January 17, 2023, Q4
revenue exceeded earlier expectations. This was driven by a further
improvement in supply chain conditions, even though we continue to
experience constraints in certain areas.
Q4 bookings amounted to €829 million, driven by
steady logic/foundry demand, and also record-high power/analog
bookings. The latter included a solid contribution from LPE, which
has been consolidated since October 3, 2022. Supported by strong
demand in the silicon carbide market, and taking into account
persistent supply constraints, we expect LPE to generate revenue in
excess of €130 million in 2023, up from our previous forecast of
more than €100 million.
For the full year, our revenue increased to a
new record high of €2,411 million, led by strong growth in our ALD
and Epi product lines. Operating profit increased by 29% to €632
million, even with significantly higher investment in R&D and
SG&A. Excluding €314 million in cash spent on acquisitions, we
generated free cash flow of €381 million, up 43% from 2021. In
2022, we continued with our focus on sustainability and we took
important next steps by submitting our GHG measurements and targets
for validation to the Science Based Targets initiative (SBTi) in Q4
2022.
OUTLOOK
ASM started the year with a record-high order
backlog of €1.7 billion. On a currency comparable level, we expect
revenue for Q1 of €660 - 700 million, with a slight increase in Q2
revenue compared to this level. Based on the current visibility, we
expect revenue in the second half of 2023 to remain at a healthy
level, albeit somewhat lower than in the first half of 2023.
Looking at the wafer fab equipment (WFE) market in 2023,
logic/foundry spending on the most advanced nodes and
automotive-related power/analog demand is expected to remain
resilient. The reduction in memory spending is expected to continue
in 2023, while demand for trailing-edge nodes in logic/foundry,
especially consumer related is expected to soften. In total, the
WFE market is forecasted to drop by a mid to high teens percentage
in 2023, a level that we expect to outperform, supported by our
strong positions in the leading-edge logic/foundry market, and also
by the momentum of newly introduced product and applications.
Taking into account ASM’s strong growth in the
last years, in combination with continued solid growth
opportunities, we need to further expand our capacity around the
world, including the recently announced expansion of our innovation
and manufacturing infrastructure in South Korea. As a result, we
have decided to step up CapEx to a level of €150-200 million in
2023.
LPE ACQUISITION
On July 18, 2022, ASM entered into a definitive
agreement under which it would at closing acquire all of the
outstanding shares of LPE, an Italian based manufacturer of
epitaxial reactors for silicon carbide (SiC) and silicon. As
announced in our press release of July 18, 2022, the
transaction was financed with a combination of cash, a conditional
earn out, and 631,154 ASM shares (a combination of 580,000 treasury
shares and 51,154 newly issued shares).
The acquisition was completed on October 3,
2022, and LPE is now a fully owned subsidiary and operates as
a product unit under ASM’s Global Products organization.
DIVIDEND PROPOSAL
ASM will propose to the forthcoming 2023 Annual
General Meeting on May 15,2023, to declare a regular dividend of
€2.50 per common share over 2022, maintaining the same level of
regular dividend paid over 2021 (€2.50 per common share).
REVOLVING CREDIT FACILITY
(RCF)
In 2023, ASM converted its revolving facility
into a Sustainability-Linked RCF aligned with the
Sustainability-Linked Loan Principles by the Loan Market
Association.
Under the terms of the facility, the interest
rate is linked to the achievement of long-term sustainability goals
targeting gender diversity, net zero and value chain packaging
reuse which are in line with ASM’s sustainability strategic focus.
Achievement of these targets will impact the interest rate as the
lenders will apply a discount on the existing margin or add a
penalty to the existing margin depending on the sustainability
achievement against the target.
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 ASM'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, March 1, 2023, at 3:00 p.m. CET.
Conference call participants should pre-register
using this link to receive the dial-in numbers, passcode 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/fourth-quarter-earnings.
CONTACT
Investor and media contact:
Victor BareñoT: +31 88 100 8500E: investor.relations@asm.com
- 20230228 ASM REPORTS Q4 2022 RESULTS
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