Ad hoc news
May 3, 2012
Ad hoc: Market uncertainty determines first quarter 2012
ELMOS Semiconductor AG (FSE: ELG) generated slightly weaker sales in the first quarter of 2012 compared to the prior-year period. Sales for the first three months of 2012 amounted to 46.9 million Euro (Q1 2011: 48.1 million Euro). The semiconductor segment is affected in particular by the high level of uncertainty in the industry, especially among the non-premium carmakers. Furthermore, some high-volume projects undergo a generation change at present. Influenced by these factors, semiconductor sales went down to 41.9 million Euro (Q1 2011: 44.0 million Euro). In contrast to that, the micromechanics business recorded a positive performance with a sales growth of 21.0% to 5.0 million Euro.
Essentially as a consequence of higher cost for the assembly of the products, expenses incurred for the 8-inch conversion that were higher than scheduled, and increased energy costs, the gross profit went down 12.4% to 18.2 million Euro (Q1 2011: 20.8 million Euro). This equals a gross margin of 38.9% (Q1 2011: 43.3%). Research and development efforts were increased as scheduled and amounted to 8.8 million Euro compared to 8.2 million Euro in the prior-year period. Also on schedule were the higher sales expenses (Q1 2012: 4.5 million Euro vs. Q1 2011: 3.5 million Euro), principally on account of the new Asian locations. Earnings before interest and taxes (EBIT) dropped accordingly to 1.0 million Euro (Q1 2011: 5.8 million Euro). The net income came to 0.6 million Euro, equivalent to earnings per share of 0.03 Euro (Q1 2011: 4.1 million Euro and 0.21 Euro, respectively). The adjusted free cash flow was -2.8 million Euro (Q1 2011: 6.2 million Euro).
In order to reduce cost of sales, a bundle of measures was launched in April 2012. Together with the expected higher sales, this will lead to a significantly improved earnings situation in the second half-year 2012.
Positive developments in the first quarter 2012 worth pointing out are the successful project acquisition and the response to ELMOS products, also in Asia. Orders of motor driver, sensor readout, microsystem and communication solutions in particular indicate the competitiveness of the ELMOS product portfolio.
Based on an unchanged economic framework, ELMOS continues to expect 2012 sales at the level of 2011. The EBIT margin is scheduled to be in the high single-digit percentage range. Capital expenditures are budgeted to come to less than 15% of sales. The free cash flow will be positive.
ELMOS Semiconductor AG is a developer and manufacturer of system solutions on semiconductor basis. For more than 25 years, our chips have made vehicles as well as industrial and consumer goods more performance and power efficient.
Contact: ELMOS Semiconductor AG, Heinrich-Hertz-Str. 1, Phone: +49 (0)231-7549-0, Extension: -287, Fax: +49 (0)231-7549-548, 44227 Dortmund, Germany, eMail: info@elmos.com, www.elmos.com