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Siltronic AG: Siltronic lowers the forecast of financial year 2019
Siltronic AG: Siltronic lowers the forecast of financial year
About this update from Siltronic Ag
[{"type":"text","content":"\n Ad hoc announcement / Disclosure of an inside information according to Article 17 MAR\n \n \n Siltronic AG Hanns-Seidel-Platz 4 81737 Munich https://www.siltronic.com\n Siltronic lowers the forecast of financial year 2019\n Munich, Germany, April 10, 2019 - As expected, Siltronic AG's sales reached approximately 354 million euro in Q1 2019. The EBITDA margin was approximately 36 percent. Siltronic expects Q2 2019 to be significantly weaker than Q1 2019.\n \n \n Siltronic previously had put its guidance under the condition that order intake would need to revive meaningfully in the second half of 2019. Because of the general economic slowdown and geopolitical uncertainties as well as ongoing inventory corrections in the whole value chain, the timing of a market rebound is, however, not visible.\n \n \n Therefore, the Executive Board of Siltronic AG has decided today to adjust the forecast of financial year 2019.\n \n \n The Executive Board expects that the wafer area sold in 2019 will be significantly lower than in 2018. This is due to a strongly decreasing demand in smaller wafers with a diameter of up to 150 mm and a noticeable decrease in 200 mm loading. Loading in 300 mm has also been coming down.\n \n \n With ASP 2019 being slightly higher compared to 2018, the Executive Board assumes the following development for the full year 2019:\n \n \n - Depending on the timing of a market recovery and on exchange rate effects, sales 2019 will be around 5 percent to 10 percent below the previous year (prior: in the region of the previous year).\n \n \n - EBITDA margin should be between 33 percent and 37 percent (prior: slightly below prior year).\n \n \n - EBIT will correspondingly be significantly (prior: a good 10 percent) below previous year.\n \n \n - Net cash flow will be clearly positive but decrease by approximately EUR 150 million (prior: approximately EUR 100 million) compared to 2018, with a subsequent significant increase again in 2020.\n \n \n - Earnings per share will be significantly (prior: slightly) below prior year.\n \n \n The Executive Board has already taken bold actions in response to the increasing challenges and the number of temporary workers has been significantly reduced in view of the lower capacity utilization. The continuous cost reduction programs which have been introduced in 2010 will be pursued with f...