ASM International N.V. (Euronext Amsterdam: ASM) today reports its second quarter 2018 operating results (unaudited) in accordance with IFRS.

FINANCIAL HIGHLIGHTS EUR million
Q2 2017 (restated) Q1 2018 Q2 2018
New orders 205.9 206.5 175.9
Net sales 214.5 159.0 208.7
Gross profit margin % 43.4 % 37.8 % 42.1 %
Operating result 42.7 11.8 38.3
Result from investments (excluding amortization intangible assets resulting from the sale of ASMPT stake in 2013) 30.9 16.3 21.6
Amortization intangible assets (resulting from the sale of ASMPT stake in 2013)
(7.1 ) (3.8 ) (3.0 )
Result from sale of ASMPT shares 101.0 - -
Net earnings 154.5 15.0 59.4
Normalized net earnings (excluding amortization intangible assets resulting from the sale of ASMPT stake in 2013 and result from sale of ASMPT shares)
60.6 18.8 62.4

2017 results were restated for the effects of IFRS 15.

New orders received of €176 million.
Net sales for the second quarter 2018 were €209 million, an increase of 31% compared to the previous quarter.
Gross profit margin was 42.1% in Q2 2018 compared to 37.8% in the previous quarter.
Operating result increased to €38 million compared to the previous quarter. The increase is mainly the result of the higher sales level and higher gross margin.
Normalized net earnings for the second quarter 2018 increased by €44 million compared to Q1 2018.

COMMENT
Commenting on the results, Chuck del Prado, President and Chief Executive Officer of ASM International said:

"In Q2 we realized sales of €209 million and an order intake of €176 million. Both sales and order intake were within our guidance, despite the uncertainty around the exact timing of individual tools as mentioned in the Q1 earnings release. The gross margin in Q2 at 42% returned back again in the range of low to mid 40's. This month at Semicon West, we introduced the Synergis, the latest addition to ASM's industry-leading line of ALD tools, which addresses a wide range of advanced applications and will drive expansion of our Served Available Market within single-wafer ALD."

OUTLOOK
For Q3, on a currency comparable level, we expect sales of €180-200 million and an order intake of € 200-230 million. Q3 reflects still some uncertainty around the exact timing of individual tools.

For 2018, general expectations for growth of the wafer fab equipment market are currently mid to high single digits. Based upon the current market developments we expect our sales in the second half to be stronger than in the first half. We expect to outgrow the wafer fab equipment market in 2018.

SHARE BUYBACK PROGRAM AND CAPITAL REPAYMENT
On June 5, 2018, ASMI announced the start of a share buyback program of ASMI's common shares up to €250 million. This program follows on ASMI's announcement on February 28, 2018, that it intended to use €250 million of the proceeds of the partial sale of a stake of approximately 9% in ASMPT for a new share buyback program. The repurchase program is part of ASMI's commitment to use excess cash for the benefit of its shareholders. On June 30, 2018, 16.6% of the program was completed at an average share price of €51.20.

On May 28, 2018, the 2018 Annual General Meeting of Shareholders (AGM), approved the proposal to distribute €4.00 per common share through a tax efficient repayment of capital. Following a statutory period under Dutch law of two months for opposition by creditors, the indicative ex-date for the distribution of €4.00 per common share is August 7, 2018, and the indicative payment date is August 10, 2018.

The 2018 AGM also approved the proposed withdrawal of 6 million treasury shares which is expected to become effective and administered on August 1, 2018, subject to the finalization of the mandatory legal procedures.