In This Article:
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Revenue: EUR357 million, a 1.7% increase quarter on quarter.
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EBITDA Margin: 25%, slightly down quarter on quarter.
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Net Income: EUR19 million for Q3.
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EBIT: EUR29 million, slightly impacted by increased depreciation.
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Total Assets: EUR4.7 billion at the end of September 2024.
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Capex: EUR470 million for the first three quarters of 2024.
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Net Financial Debt: EUR739 million at the end of September 2024.
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Equity Ratio: 47%.
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Customer Prepayments: EUR575 million, a slight decrease from the end of 2023.
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Promissory Note Loan: EUR370 million secured, paid out in October.
Release Date: October 24, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Siltronic AG (SSLLF) achieved a modest quarter-on-quarter sales increase, reflecting a 1.7% rise driven by a higher wafer area sold.
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The company successfully placed a promissory note loan, attracting significant interest from investors, securing EUR370 million.
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Prices remained largely stable quarter-on-quarter with no deviations from long-term agreement (LTA) contracted prices.
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The equity ratio remained at a healthy level of 47%, indicating strong financial stability.
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Siltronic AG (SSLLF) remains on track to meet its full-year 2024 guidance, despite challenging market conditions.
Negative Points
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The company faced a persistently weak demand environment in the wafer industry, impacting sales and profitability.
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Siltronic AG (SSLLF) experienced a decrease in sales by 9% in the nine-month comparison to the previous year, mainly due to a lower wafer area sold.
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The EBITDA margin declined from around 30% to 26% due to a lower hedging result and increased depreciation.
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The company had to postpone major qualifications for its new Singapore factory to next year, affecting its EBITDA margin guidance.
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Siltronic AG (SSLLF) continues to experience negative net cash flow due to high capital expenditures for ramping up the new factory in Singapore.
Q & A Highlights
Q: What has led to the maintained sales guidance for 2024 despite challenges faced by major customers like Samsung and Intel? A: Michael Heckmeier, CEO, explained that while they cannot comment on individual customers, the overall business is governed by a diverse customer base. The maintained sales guidance reflects an aggregated view of sales across all customers, not just individual ones like Samsung or Intel.
Q: Can you provide insights into the inventory situation and when it might normalize? A: Michael Heckmeier, CEO, stated that the inventory situation remains unclear, with elevated levels persisting. The company relies on public data and customer insights to assess the situation, but a full recovery timeline is still uncertain.