Elmos Semiconductor AG (FSE: ELG) has closed the sale of Silicon Microstructures Inc. (SMI) to Measurement Specialties Inc., a subsidiary of TE Connectivity Ltd., today. The micromechanics segment consists exclusively of SMI. The subsidiary will be deconsolidated as of October 1, 2019. SMI is therefore only included in the sales and earnings of Elmos Semiconductor AG for the first nine months in 2019. Taking the above circumstance into account, the guidance communicated for 2019 has been adjusted:
Elmos’ sales growth will amount to 4-8% (previously: 6-10%). Organic growth will remain unchanged. The adjustment reflects, as explained above, the elimination of SMI sales in Q4 2019. The operatonal EBIT margin will be between 13 and 17% (unchanged). In addition, the transaction will result in extraordinary income, which will be determined on the basis of the final purchase price. Investments for 2019 will account for less than 15% of revenues (unchanged). The adjusted free cash flow will be significantly positive due to the cash inflow from the transaction in 2019. The forecast is based on an exchange rate of 1.15 US dollars/Euro (unchanged).
About Elmos Semiconductor AG
Elmos develops, produces and markets semiconductors and sensors, primarily for use in the automotive industry. Our components communicate, measure, regulate and control safety, comfort, powertrain and network functions. For over 30 years, Elmos innovations have been bringing new functions to life and making mobility worldwide safer, more comfortable and more energy efficient.
This release contains forward-looking statements that are based on assumptions and estimates made by the Elmos management. Even though we assume the underlying expectations of the forward-looking statements to be realistic, we cannot guarantee the expectations will prove right. The assumptions may carry risks and uncertainties, and as a result actual events may differ materially from the forward-looking statements. Among the factors that could cause such differences are changes in general economic and business conditions, fluctuations of exchange rates and interest rates, the introduction of competing products, lack of acceptance of new products, and changes in business strategy. Elmos neither intends nor assumes any obligation to update its statements with respect to future events.
Elmos Semiconductor AG
Mathias Kukla, Press Relations, Telephone: +49231-7549-199