Elmos Semi 2013 Targets Achieved Restructuring Continues in 2014

March 23, 2014 by Jeff Shepard

Sales for Elmos Semiconductor AG for the full year 2013 increased by 5.0% to 189.1 million Euro (2012: 180.1 million Euro). The gross profit climbed to 79.2 million Euro (2012: 76.1 million Euro). This corresponds to a gross margin of 41.9% (2012: 42.2%). The EBIT was 12.7 million Euro in the full year 2013 and equaled an EBIT margin of 6.7% (2012: 11.5 million Euro and 6.4%). The consolidated net income also showed a positive performance and amounted to 9.4 million Euro in 2013 (2012: 8.1 million Euro). Basic earnings per share (EPS) climbed accordingly to 0.49 Euro after 0.42 Euro in the previous year. In 2014, the company will continue to diversify beyond its core markets in automotive applications, extending into industrial and consumer products. At the same time, it will increase its percentage of sales in Asia as compared with its home market in Germany.

In the past fiscal year 2013 Elmos achieved a positive adjusted free cash flow of 7.6 million Euro (2012: 7.3 million Euro) despite a significant increase in net working capital due especially to the growth in sales toward the end of the year 2013. The solid financial position was thus further strengthened. Based on the sustained positive performances of earnings and cash flow, Management Board and Supervisory Board propose to the Annual General Meeting on May 13, 2014 to distribute a dividend in the amount of 0.25 Euro per share again.

“2013 was not an easy year but we still managed to meet the forecast. For the current year we have set higher goals, considering the demand for our products and several project ramp-ups. The start of the year makes us feel optimistic,” says Dr. Anton Mindl, CEO of Elmos Semiconductor AG.

“Historically speaking, our strength resides in the automotive market. However, we also recognize considerable opportunities for our products in the markets for industrial and consumer goods. In order to seize these opportunities increasingly, Elmos has intensified its efforts in this area over the past few years. We have signed additional distributors to address a global customer base. The design teams, strengthened in the last years, fortify these targeted activities especially in the realms of digital design and high-voltage applications. The areas of network systems, lighting concepts, sensorics, and power supply meet with great customer attention,” the announcement continued.

“In 2013 new market opportunities were identified – also outside the automotive sector – and new products were transferred to series production. Moreover, the opportunities for generating sales with existing products were increased by product updates. Management wants to raise the share of industrial and consumer goods products in total sales to between 20 and 30% in the medium term (2013: 15%). However, it must be taken into consideration that order volumes from industrial-sector customers are often lower than those commissioned by automotive customers. This entails that Elmos needs to receive considerably more orders from industrial customers in order to increase the respective share in total sales significantly. The consumer goods market also provides interesting niches in the fields where Elmos has its core competencies. In this sector Elmos therefore also aims at winning new customers who might account for an important share in total sales in the future,” the company concluded.

For 2014 Elmos expects a sales increase and an EBIT margin in the upper single-digit percentage range respectively. Capital expenditures for intangible assets and property, plant and equipment are scheduled not to exceed a maximum amount of 15% of sales in 2014. Management also assumes that Elmos will generate a positive adjusted free cash flow once again.