DGAP-News: AIXTRON remains confident in challenging market environment / Year end inventory adjustment reflects current difficult market conditions / Dividend policy remains unchanged / Profitable 2012 performance predicted with strong R&D investments pla
ID: 120385
(firmenpresse) - DGAP-News: AIXTRON SE / Key word(s): Final Results/Dividend
AIXTRON remains confident in challenging market environment / Year end
inventory adjustment reflects current difficult market conditions /
Dividend policy remains unchanged / Profitable 2012 performance
predicted with strong R&D investments planned
01.03.2012 / 07:29
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AIXTRON remains confident in challenging market environment
Year end inventory adjustment reflects current difficult market conditions
Dividend policy remains unchanged
Profitable 2012 performance predicted with strong R&D investments planned
Aachen, Germany, March 1, 2012 - AIXTRON SE (ISIN DE000A0WMPJ6), a
worldwide leading provider of deposition equipment to the semiconductor
industry, delivered in 2011 - despite the market weakness in the second
half - EUR 611.0m of revenues and a 18% EBIT margin. Although 2012 is
expected to be a transitional year between two LED investment cycles with
potentially lower revenues, Management anticipates that the Company will
remain EBIT profitable for the year.
Key Financials
2011 2010 +/- 2011 2010 +/-Financial Highlights
(in EUR million) FY FY Q4 Q4
Revenues 611.0 783.8 -22% 140.1 224.7 -38%
Gross profit 231.4 411.8 -44% 11.8 117.3 -90%
Gross margin 38% 53% -15 8% 52% -44
pp pp
Operating result (EBIT) 112.9 275.5 -59% -16.9 86.0 -120%
EBIT margin 18% 35% -17 -12% 38% -50
pp pp
Net result 79.5 192.5 -59% -10.9 61.6 -118%
Net result margin 13% 25% -12 -8% 27% -35
pp pp
Net result per share - basic 0.79 1.93 -59% -0.11 0.62 -118%
(EUR)
Net result per share - diluted 0.78 1.89 -59% -0.11 0.60 -118%
(EUR)
Dividend proposal/dividend per 0.25 0.60 -58%
share (EUR)
Equipment order intake 513.4 748.3 -31% 29.3 204.0 -86%
Equipment order backlog (end of 141.0 274.8 -49% 141.0 274.8 -49%
period)
Total order intake for AIXTRON in 2011 was EUR 513.4m, 31% down compared to
2010 (EUR 748.3m) with order intake dramatically slowing down in the second
half of the year. The year end order backlog stood at EUR 141.0m on
December 31, 2011, 49% lower than at the same time in 2010 (December 31,
2010: EUR 274.8m).
For the full year 2011, AIXTRON recorded revenues of EUR 611.0m. While
representing a decrease of EUR 172.8m, or 22%, compared to EUR 783.8m in
2010, 2011 still turned out to be AIXTRON's second best year in terms of
revenues.
Following an assessment of the market outlook for AIXTRON's specific
industry and the company's currently limited visibility, Management
concluded the likelihood of a continuation of the low level market activity
seen towards the end of 2011 into the first half of 2012. In view of this
and the consequent likely reduction in inventory turnover, combined with
the timing of new product developments in the pipeline, Management decided
to make a provision against the potential risk of unsold excess inventories
of approximately EUR 40m, resulting in a reduced year end total inventory
figure of EUR 184.6m.
However, AIXTRON was able to quickly adapt to the deteriorating business
environment during the second half of the year, and consequently still
delivered reasonable profit margins for the year, with a gross margin of
38% (2010: 53%) and an EBIT margin of 18% (2010: 35%). Seven percentage
points of the gross margin decline as well as of the EBIT-Margin decline
were attributable to the inventory provision mentioned above.
The 2011 net profit was EUR 79.5m (13% of revenues), 59% down from the EUR
192.5m (25% of revenues) in 2010 resulting in basic earnings per share of
EUR 0.79 (2010: EUR 1.93).
Dividend proposal
AIXTRON's Executive and Supervisory Boards will propose to the
shareholders' meeting in May 2012 that a dividend of EUR 25.4m or EUR 0.25
per share (EUR 60.7m or EUR 0.60 in 2010) will be distributed for the
fiscal year 2011. This would result in a pay-out ratio of 32% based on the
group net income (2010: 32%), leaving the previous dividend policy
unchanged.
Management Review
Despite the current market conditions, AIXTRON Management remains convinced
that the development of a sustainable LED lighting industry will follow
this temporary period of uncertainty.
Paul Hyland, President&Chief Executive Officer at AIXTRON: 'However we
look at 2011, it was certainly an extraordinary year by any standard. We
were still delivering strong revenues in the first half of the year,
whereas in the second half, the market environment changed dramatically,
resulting in a abrupt reduction in demand for MOCVD systems. We have made
the necessary adjustments to our order book and inventory and executed
immediate cost saving measures, including headcount reductions, without
jeopardizing our ability to quickly respond to an uptick of demand or
diluting our R&D focus.'
To comment on the quality of AIXTRON's ability to cope with such volatility
and to remain a leading player in the industry, Hyland continues:
'Our 2011 full year result still underlines the benefit of the Company's
flexible business model and stable financial position which has enabled us
to effectively cope with these severe market fluctuations, whilst
maintaining our commitment to strategic investments in research and
development. Our substantial multi year investment program is not
exclusively limited to the development of next generation LED manufacturing
tools. We are also focusing on the development of new technologies for
other end markets we believe we can address with the expertise that we have
within AIXTRON.'
Paul Hyland summarizes: 'In the short term, we believe that the next
substantial investment cycle will be triggered by MOCVD demand from the
emerging LED lighting market. We continue to see very encouraging signals
in the form of increasingly proactive governmental engagement and clear
market preparation and positioning activities from significant industry
players, specifically targeting the LED lighting opportunity. The mid- to
long-term prospects for the LED industry remain excellent, particularly in
view of the increasing worldwide acceptance of the environmental and cost
benefits that come with using LED technology for general lighting
applications.'
Outlook
With currently very limited order visibility, it is far more difficult than
in previous years to provide a full year guidance. However, Management
believes that 2012 looks set to be a transitional year between LED
investment cycles with potentially lower revenues. Consequently, although
unable to offer a precise revenue and EBIT margin guidance at this point in
time, Management anticipates remaining EBIT profitable in 2012. AIXTRON
Management will present a full year revenue and EBIT forecast as and when
visibility improves.
Financial Tables
Thefull year 2011 results presentation as well as the consolidated
financial statements (statement of financial position, income statement,
cash flow statement, statement of changes in equity) relating to this press
release are available at http://www.aixtron.com, section 'Investors,
Reports/Presentations', as part of AIXTRON's Annual Report for 2011.
Investor Conference Call
AIXTRON will host a financial analyst and investor conference call on
Thursday, March 1, 2012, 3:00 p.m. CET (6:00 a.m. PST, 9:00 a.m. EST) to
review the full year 2011 results. From 2:45 p.m. CET (5:45 a.m. PST, 8:45
a.m. EST) you may dial in to the call at +49 (69) 247501-899 or +1 (212)
444-0297. A conference call audio replay or a transcript of the conference
call will be available at http://www.aixtron.com, section 'Investors,
Reports/Presentations', following the conference call.
Contact:
Guido Pickert
Investor Relations and Corporate Communications:
T: +49-241-8909-444
F: +49-241-8909-445
invest(at)aixtron.com
For further information on AIXTRON SE (FSE: AIXA, ISIN DE000A0WMPJ6;
NASDAQ: AIXG, ISIN US0096061041) please consult our website at:
www.aixtron.com.
Forward-Looking Statements
This news release may contain forward-looking statements about the
business, financial condition, results of operations and earnings outlook
of AIXTRON within the meaning of the 'safe harbor' provisions of the United
States Private Securities Litigation Reform Act of 1995. Words such as
'may', 'will', 'expect', 'anticipate', 'contemplate', 'intend', 'plan',
'believe', 'continue' and 'estimate', and variations of these words and
similar expressions, identify these forward-looking statements. The
forward-looking statements reflect our current views and assumptions and
are subject to risks and uncertainties. You should not place undue reliance
on the forward-looking statements. The following factors, and others which
are discussed in AIXTRON's public filings and submissions with the U.S.
Securities and Exchange Commission, are among those that may cause actual
and future results and trends to differ materially from our forward-looking
statements: actual customer orders received by AIXTRON; the extent to which
chemical vapor deposition, or CVD, technology is demanded by the market
place; the timing of final acceptance of products by customers; the
financial climate and accessibility of financing; general conditions in the
thin film equipment market and in the macro-economy; cancellations,
rescheduling or delays in product shipments; manufacturing capacity
constraints; lengthy sales and qualification cycles; difficulties in the
production process; changes in semiconductor industry growth; increased
competition; exchange rate fluctuations; availability of government
funding; variability and availability of interest rates; delays in
developing and commercializing new products; general economic conditions
being less favorable than expected; and other factors. The forward-looking
statements contained in this news release are made as of the date hereof
and AIXTRON does not assume any obligation to update or revise any
forward-looking statements, whether as a result of new information, future
events or otherwise, unless required by law.
Contact:
Investor Relations and Corporate Communications
AIXTRON SE, Kaiserstr. 98, 52134 Herzogenrath, Germany
Phone: +49 241 8909 444, Fax: +49 241 8909 445, invest(at)aixtron.com
www.aixtron.com
End of Corporate News
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01.03.2012 Dissemination of a Corporate News, transmitted by DGAP - a
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Language: English
Company: AIXTRON SE
Kaiserstr. 98
52134 Herzogenrath
Germany
Phone: +49 (241) 8909-444
Fax: +49 (241) 8909-445
E-mail: invest(at)aixtron.com
Internet: www.aixtron.com
ISIN: DE000A0WMPJ6, US0096061041
WKN: A0WMPJ
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf, München, Stuttgart;
Terminbörse EUREX
End of News DGAP News-Service
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