Mersen raises its full-year guidance for 2017
PARIS, JULY 19, 2017 - Mersen (Euronext FR0000039620 – MRN), a global expert in electrical power and advanced materials, has announced that, based on the preliminary data for the second quarter of 2017 and in compliance with the European Commission's Market Abuse Regulation (MAR), it has raised its guidance in terms of sales and operating margin before non-recurring items for 2017.
Second-quarter preliminary data point to organic growth in sales of close to 5% for the first half of 2017, and an operating margin before non-recurring items of between 8.8% and 9% of sales after factoring in the negative impact of reclassifying the amortization of revalued intangible assets* in operating income before non-recurring items. The Group's forecasts significantly exceed market expectations.
As a result, the Group has revised its guidance for organic growth in sales to between 3% and 5% versus 0% to 2% previously announced, and is expecting growth in its operating margin before non-recurring items of between 80 and 130 basis points compared with 50 to 100 basis points previously announced.
The Group will publish its results for the first half of 2017 on July 31 after market close.
*Reclassification of "amortization of revalued intangible assets" in "operating income before non-recurring items"
Mersen has decided to reclassify the amortization of identified intangible assets (primarily its client relationships and technological expertise) in goodwill in Operating income before non-recurring items rather than assigning it a specific line entry below Operating income before non-recurring items.
The amortization of revalued intangible assets amounted to €0.7 million on June 30, 2016, and €1.2 million for 2016 as a whole.
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 its 6,100 employees working across 35 countries, recorded sales of 764 million euros in 2016.
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