ASM reports fourth quarter 2023
Almere, The Netherlands February 27, 2024, 6 p.m. CET
ASM International N.V. (Euronext Amsterdam: ASM) today
reports its fourth quarter 2023 operating results
(unaudited).
Double-digit full-year revenue growth, outperforming
softer WFE market in 2023
Financial highlights
€ million |
Q4 2022 |
Q3 2023 |
Q4 2023 |
New orders |
828.6 |
627.4 |
677.5 |
YoY change % at
constant currencies |
26% |
0% |
(14%) |
Revenue |
724.8 |
622.3 |
632.9 |
YoY change % at
constant currencies |
42% |
9% |
(7%) |
Normalized gross profit margin 1 |
46.9% |
48.9% |
47.9% |
Normalized operating result 1 |
189.8 |
157.2 |
141.0 |
Normalized operating result margin 1 |
26.2% |
25.3% |
22.3% |
Share in income of investments in associates (excluding
amortization intangible assets resulting from the sale of ASMPT
stake 2013) |
8.3 |
0.4 |
2.2 |
Amortization intangible assets (resulting from the sale of ASMPT
stake in 2013) |
(3.5) |
(0.1) |
(0.1) |
Reversal of impairment of investments in associates |
106.1 |
0.0 |
0.0 |
Net earnings |
236.6 |
129.6 |
90.9 |
Normalized net earnings 2 |
142.4 |
139.1 |
100.3 |
1 Excluding amortization of fair value adjustments
from purchase price allocations (before tax)
2 Excluding amortization of fair value adjustments
from purchase price allocations (net of tax), change in fair value
of the contingent consideration (LPE earn-out) and impairment
reversal of ASMPT
- New orders of €678 million for the fourth quarter 2023
representing a decrease of 14% over the same period last year on a
constant currency basis (decreased by 18% as reported).
- Year-on-year revenue decrease for the fourth quarter 2023 was
7% at constant currencies (decreased by 13% as reported).
- Normalized gross profit margin of 47.9%, improved compared to
46.9% in the same quarter last year, mainly explained by mix,
including a continued strong contribution from China sales.
- Normalized operating result for the fourth quarter 2023,
decreased from €190 million last year to €141 million this year,
largely explained by lower sales and increased operating expenses
(€13 million).
- Normalized net earnings for the fourth quarter 2023 were €100
million, down from €142 million in Q4 last year. This decrease was
primarily due to a decline in normalized operating result,
partially offset by a lower translation loss of €25 million
compared to a translation loss of €36 million in Q4 2022 (Q3
translation gain of €3 million).
- Net earnings for the fourth quarter 2023 included a negative
impact of €9 million (net of tax) relating to PPA expenses (Q4 2022
€8 million). Details of (estimated) amortization and earn-out
expenses (PPA expenses) relating to the 2022 acquisitions of LPE
and Reno are found in Annex 2.
Comment
“2023 was another successful year for ASM. Sales
increased by 13% at constant currencies, despite softening market
conditions, and marking the seventh consecutive year of
double-digit growth.” said Benjamin Loh, CEO of ASM. “Revenue in Q4
2023 amounted to €633 million, in line with our guidance of
€600-640 million and down compared to the level in Q4 2022. Revenue
in the quarter was supported by strong sales in the power/analog/
wafer segment. Bookings at €678 million were slightly better than
our expectation and were driven by GAA pilot- line orders and
continued strength in China demand.
Our full-year revenue increased to a record-high level of €2.6bn,
outperforming the WFE market which was slightly down in 2023. Our
sales dropped in memory in 2023, reflecting significant cuts in
investment in this segment, and despite relatively healthy demand
for high-performance DRAM. The leading-edge logic/foundry segment
was also lower in 2023, impacted by weak end-market conditions and
delays in some new customers’ fab, as already reported earlier in
2023. This was offset by strong growth in the mature node market
segments: in power/analog/wafer, and in mature logic/foundry,
particularly in China. Our silicon carbide (SiC) Epi business grew
strongly in 2023, comfortably meeting the revenue target of more
than €130 million in 2023, and with synergies already paying off.
In the fourth quarter of 2023, two more customers selected our
latest 200mm SiC Epi tool, with multiple tool orders expected in
2024.
Normalized gross margin increased to 49.3% in 2023, supported by
mix, including a substantial increase in sales from China with
above-average profitability. Free cash flow increased by 17% in
2023 (on an adjusted basis, excluding cash spent on acquisitions in
2022), even with a further increase in capex.
We remain on track towards our strategic targets and continue to
invest in our people, in innovation and expansion. In December, we
announced to invest in a new state-of-the-art R&D center in
Scottsdale, Arizona. It will be twice as big as the current R&D
facility, in Phoenix, Arizona, and will enhance our ALD and Epi
product- development efforts.
We also made further progress in accelerating sustainability in
2023. A highlight was the verification of our Net Zero by 2035
targets by SBTi in August 2023, a first in the semiconductor
industry. In addition, we increased the use of renewable
electricity from 73% to 88% in 2023, and we remain on track to
achieve 100% by 2024.”
Outlook
While the broader semiconductor market is
expected to recover in 2024, the softer WFE market conditions we
saw in the second half of 2023 are expected to continue into the
first part of 2024. For the first quarter of 2024, we expect
revenue of €600-640 million, with a similar level in the second
quarter. For the second half of 2024, we expect revenue to be up
compared to the level in the first half year, but it is too early
to provide more specific guidance for the second half or for the
full year. Looking at the expectations for WFE demand, memory and
leading-edge logic/foundry demand is expected to gradually recover
in the course of 2024. The revenue contribution from the Chinese
market is expected to be still relatively high in the first part of
the year, but likely to normalize in the rest of the year. For our
SiC Epi business, we expect a continued strong performance in 2024.
We expect ASM to benefit from an expected rebound of the WFE market
in 2025. Based on this, we remain confident ASM revenue will
increase to the forecasted range for 2025 (€3.0-3.6 billion). The
move of GAA 2nm technology into high-volume manufacturing in 2025
is expected to be a significant driver for ASM.
Benjamin Loh to retire, Hichem M’Saad to succeed him as new
CEO
ASM announced on February 12, 2024, that CEO
Benjamin Loh will retire and step down as per the AGM on May 13,
2024. He will be succeeded by Hichem M’Saad, currently member of
the Management Board and CTO.
ASM announced €300M expansion of U.S. operations in
Scottsdale, Arizona
ASM announced on December 5, 2023, its plans for
a new North American expansion to accommodate growing demand for
research and development in the semiconductor industry.
ASM is investing €300 million over a period of
up to five years to design and construct the new state-of-the-art
site on more than 20 acres (8.5 hectares) in Scottsdale, Arizona.
This total investment is a combination of capital expenditures
related to infrastructure and lab equipment, and includes
operational expenses such as the additional research and
engineering jobs created with the expansion.
Share buyback program
ASM announces today that its Management Board
authorized a new repurchase program of up to €150 million of the
company's common shares within the 2024/25 timeframe. This buyback
program will be executed by intermediaries and will end as soon as
the aggregate purchase price of the common shares acquired by ASM
has reached €150 million.
Dividend proposal
ASM will propose to the forthcoming 2024 Annual
General Meeting on May 13, 2024, to declare a regular dividend of
€2.75 per common share over 2023, increased from the regular
dividend paid over 2022 (€2.50 per common share).
About ASM International
ASM International N.V., headquartered in Almere,
the Netherlands, and its subsidiaries design and manufacture
equipment and process solutions to produce semiconductor devices
for wafer processing, and have facilities in the United States,
Europe, and Asia. ASM International's common stock trades on the
Euronext Amsterdam Stock Exchange (symbol: ASM). For more
information, visit ASM's website at www.asm.com.
Cautionary Note Regarding Forward-Looking
Statements: All matters discussed in this press release, except for
any historical data, are
forward-looking statements.
Forward-looking statements involve
risks and uncertainties that
could cause actual results to differ
materially from those in the forward-looking statements. These
include, but are not limited to, economic conditions and trends in
the semiconductor industry generally and the timing of the industry
cycles specifically, currency fluctuations, corporate transactions,
financing and liquidity matters, the success of restructurings, the
timing of significant orders, market acceptance of new products,
competitive factors, litigation involving intellectual property,
shareholders or other issues, commercial and economic disruption
due to natural disasters, terrorist activity, armed conflict or
political instability, changes in import/export regulations,
pandemics, epidemics and other risks indicated in the company's
reports and financial statements. The company assumes no obligation
nor intends to update or revise any forward-looking statements to
reflect future developments or circumstances.
This press release
contains inside information
within the meaning of
Article 7(1) of the EU
Market Abuse Regulation.
Quarterly earnings conference call details
ASM will host the quarterly earnings conference
call and webcast on Wednesday, February 28, 2024, at 3:00 p.m.
CET.
Conference-call participants should pre-register
using this link to receive the dial-in numbers, passcode and a
personal PIN, which are required to access the conference call.
A simultaneous audio webcast and replay will be accessible at
this link.
Contacts
Investor and media relations Investor
relations
Victor Bareño
Valentina Fantigrossi
T: +31 88 100 8500
T: +31 88 100 8502
E: investor.relations@asm.com
E: investor.relations@asm.com
- 20240227 ASM reports Q4 2023 results
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