Exyte continues excellent business performance in the third quarter of 2019
- Sales increases year on year by 6.5% in the first nine months of 2019
- Profitability significantly improved; adjusted EBIT up 33.3% year on year
- Exyte about to close an excellent financial year
Exyte AG (“Exyte”), a global leader in the design, engineering and construction of high-tech facilities, plants and factories, is set to continue on its growth path after a successful third quarter. Sales and profitability improved significantly compared to Q3 2018, thereby continuing the positive trend from the first half of the year. Exyte expects record sales in the magnitude of around € 4.0 billion in financial year 2019 (2018: € 3.5 billion).
In the first nine months of 2019, Exyte generated sales of € 2.7 billion (9M 2018: € 2.6 billion) and an adjusted EBIT of € 148 million (9M 2018: € 111 million). The company therefore continued sales growth and noticeably boosted profitability year on year. Sales was 6.5% higher than in the first nine months of financial year 2018, and adjusted EBIT improved by 33.3%. The adjusted EBIT margin increased to 5.4% (9M 2018: 4.3%).
Dr. Wolfgang Büchele, CEO of Exyte, said: “We have carried on the momentum from the positive first half of the year and are delighted with the successful business development in the third quarter. We are certain that the financial year 2019 is set to be an excellent year for our company. All of our expectations have been met.” In all, Exyte recorded order intake of € 3.6 billion in the first nine months of this financial year (9M 2018: € 3.5 billion), which is an increase of almost 4% year on year. Dr. Büchele explains: “Last year saw us receive an extraordinary project in the APAC region, which was expectedly not repeated in 2019. Nevertheless, we were able to more than compensate for this with an increase in orders in the other two regions”. These included projects in Denmark (Data Center), Ireland, Israel and Austria (semiconductors), to name a few. With € 1.2 billion, Exyte more than doubled its order intake in the third quarter alone compared to Q3 2018 (€ 519 million). As of 30 September 2019, Exyte’s order book was solid, with an order backlog totalling € 3.8 billion (9M 2018: € 3.0 billion).
ATF remains the strongest business segment; DTC records considerable growth
Exyte was able to continue to grow in its largest business segment, Advanced Technology Facilities (ATF; esp. semiconductors), in the third quarter as well. At € 2.2 billion, Exyte increased sales in this business segment by 12.1% year on year in the first nine months of the current financial year, primarily driven by projects in Singapore, Ireland, the US, Austria and Malaysia (9M 2018: € 2.0 billion). At the same time, sales in the smaller strategic business segment Data Center increased noticeably from € 136 million in the previous-year period to € 197 million in the first nine months of financial year 2019 (+44.9%). Sales in the Life Sciences & Chemicals (LSC) business segment remained virtually unchanged year on year at € 240 million (9M 2018: € 245 million).
With sales of € 1.3 billion, the Asia-Pacific (APAC) region is still Exyte’s largest regional market, although the figure was marginally below the level of the previous year (9M 2018: € 1.4 billion). However, Exyte was able to considerably increase the sales in Europe (EMEA) in the first nine months of financial year 2019. In the EMEA region, Exyte generated sales of € 944 million in the current period, which is a year-on-year increase of 43.2% (9M 2018: € 659 million). Sales in the Americas region (AMER) was slightly down on the previous year at € 402 million (9M 2018: € 452 million). Based on the healthy order intake, the company expects a positive development in this market as well in the future.
Exyte about to close an excellent year
“We believe we will be able to continue this positive trend in 2020 as well and grow further. We will continue to build on our strong market position and our innovative solutions, which are highly appreciated by our customers,” Dr. Büchele explains.
Exyte confirms its sales forecast for this financial year in the magnitude of around € 4.0 billion (2018: € 3.5 billion). At the same time, Exyte expects order intake to stay at the level of the previous year (2018: € 4.4 billion) and anticipates a moderate increase of the adjusted EBIT (2018: € 170 million). The company believes it can continue to grow in financial year 2020 and aims for sales of € 5 billion in the medium term and for an adjusted EBIT margin of ≥ 5%.
For more information, see www.exyte.net/financial-reports.