Mersen: Like-for-like growth of 11% in the first quarter of 2018
Like-for-like growth of 11% in the first quarter of 2018
- Positive momentum, in line with expectations for the period
- Remarkable performance in solar power and electronics markets
- Strong growth in the three major geographic areas
Paris, April 25th, 2018 - Mersen (Euronext FR0000039620 – MRN), a global expert in electrical power and advanced materials, has reported consolidated sales of €209 million for the first quarter of 2018.
Luc Themelin, Mersen's Chief Executive Officer, commented: “In line with year-end 2017, we are continuing to benefit in every way from Mersen’s strong position. The Group enjoyed very strong growth in its three major geographic areas, with Asia continuing to perform exceptionally well. Our expanding markets in renewable energies, electronics and aeronautics contributed to the robust first-quarter performance, with nearly 50% growth in solar. The Group has once again proved it is agile, responsive and efficient in meeting market demand. We also finalized several acquisitions, acquiring the remaining capital of Cirprotec in the power quality sector, purchasing a stake in start-up Caly Technologies, and acquiring Idealec, which will allow us to consolidate our position in the power electronics market.”
First Quarter 2018 Sales
Mersen reported consolidated sales of €209 million for the first quarter of 2018, up 11% like-for-like. As expected, the currency effect was negative, primarily due to the depreciation of the US dollar, resulting in reported growth of 3.3%.
|(in millions of euros)||Q1 2018||Q1 2017
|Rest of the world||7.5||8.4||-1.3%||-9.4%||-10.7%|
Like-for-like sales in the Advanced Materials segment rose by 11.9% year-on-year to end the quarter at €116 million. Every market contributed to growth, particularly solar, aeronautics, electronics and process industries. Business in the chemicals market increased at a more moderate rate, but order levels are encouraging.
Electrical Power sales came to €93 million for the quarter, up 10% like-for-like. Growth was particularly dynamic in solar and power electronics. Electrical distribution sales experienced moderate growth.
In Europe, growth was significant in the Electrical Power segment, driven by several projects in power electronics. Performance was significant in France across all market segments. The Group enjoyed an exceptional performance in Asia, with organic growth of close to 19%. Business was especially brisk in China and South Korea, bolstered by solar, electronics and process industries. Lastly, strong growth returned in North America, thanks to the electronics and process industries markets, especially the oil industry.
Mersen acquired the remaining capital of Cirprotec following acquisition of a majority stake in February 2014. The operation allows Mersen to accelerate the development of surge protection devices and solutions in high-potential markets such as LED lighting, solar power and EV charging, as well as in growth countries, particularly in Asia.
Mersen also acquired a 49% stake in CALY Technologies, a Lyon-based start-up company specializing in silicon carbide (SiC) semiconductor devices along with proven experience in protection functions. Thanks to this investment, Mersen is able to expand its portfolio of over-current, surge protection and current limiting products, while developing its expertise in semiconductor technologies.
Mersen acquired Idealec, a designer and manufacturer of laminated bus bars. The new acquisition reinforces the Electrical Power segment’s position as a leader on the laminated bus bar market and expands its client portfolio, particularly in the energy and rail sectors. It will also strengthen the Group’s position as a preferred partner for the power electronics market.
Outlook for 2018
The first quarter has met the Group’s expectations of sustained, positive momentum in its buoyant markets at the beginning of the year. Mersen can therefore confirm its objectives for 2018, as announced in its 2017 results published on March 7, with like-for-like sales growth of between 3% and 6% for a current operating margin of between 9.6% and 10.1% (9.2% in 2017).
Like-for-like growth: determined by comparing sales for the year with sales for the previous year, restated at the current year’s exchange rate, excluding acquisitions and/or disposals.
Q1 2017 restated: first-quarter 2017 sales have been restated to reflect the disposal of the high voltage switch and contactor business in October 2017 and the impact of IFRS 15:
|Q1 2017 (in millions of euros)||IFRS 15||Disposals|
|Rest of the world|
The restatement of other quarters as a result of IFRS 15 will be on the same scale.
First-half 2018 results: July 30, 2018 after market close
A global expert in electrical power and advanced materials, Mersen designs innovative solutions to address its clients' specific needs to enable them to optimize their manufacturing performance in sectors such as energy, electronics, transportation, chemicals & pharmaceuticals and process industries.
Mersen, with 6,400 employees working across 35 countries, recorded sales of €809 million in 2017.
Mersen is listed on Euronext Paris – Compartment B
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