Manufacturers

Mersen Reports Record Sales in 2024

PARIS — Mersen (Euronext FR0000039620 – MRN), a global expert in electrical power and advanced materials, has reported consolidated sales of $1.297 billion for full-year 2024, representing organic growth of 2.6%.

2024 ended with a new sales record for the Group. Mersen was once again able to draw on its comprehensive, dynamic and resilient profile to finish the year above its previous forecasts. The solar market will face a slowdown in early 2025, continuing a trend we observed in late 2024, while the SiC semiconductor market will be affected by the three-year delay in demand, as mentioned at December’s Capital Market Day. The Group’s other markets, in particular rail, aeronautics and process industries, remain solid. On the strength of our global leadership positions and balanced international footprint, we remain confident about Mersen’s medium- and long-term prospects.

—Luc Themelin, Mersen’s Chief Executive Officer

Full-year 2024 Sales

Mersen’s consolidated sales for full-year 2024 totaled $1.297 billion, up by 2.6% on an organic basis compared to 2023, with more than 2% of this growth attributable to price increases.

The unfavorable currency effect was mainly due to the depreciation of the Chinese renminbi, the Japanese yen and the South Korean won. The scope effect corresponds, on the one hand, to the disposal of a chemicals business in Germany in August 2023 and of a rail brush business in China in April 2024. On the other hand, it also reflects the consolidation of GMI starting July 1, 2024, of KTK starting October 1, 2024, and of Bar-Lo starting November 1, 2024.

In millions of euros FY 2024 FY 2023 Organic growth Scope effect Currency effect Reported growth
Advanced Materials 689.8 669.4 2.6% +1.4% -0.9% 3.0%
Electrical Power 553.8 541.5 2.6% +0.3% -0.6% 2.3%
Europe 400.2 397.1 1.8% -0.9% -0.1% 0.8%
Asia-Pacific 297.7 310.9 -1.2% -1.1% -2.0% -4.3%
North America 508.9 463.1 6.3% +3.9% -0.3% 9.9%
Rest of the World 36.8 39.7 -4.0% -0.6% -2.8% -7.3%
Group 1,243.6 1,210.9 2.6% +0.9% -0.7% 2.7%

Performance by segment

Advanced Materials sales totaled $719 million, up 2.6% on an organic basis over the year. As expected, sales in the solar and silicon semiconductor markets were dampened due to high customer inventory levels. Growth was particularly robust in the transportation market (aeronautics and rail). Sales for the SiC semiconductors market increased by around 10%. Lastly, growth in the chemicals and process industries markets was above the Group’s average.

Electrical Power sales came to $577 million for the year, representing organic year-on-year growth of 2.6%. Sales to the electrical distribution market in the United States remained strong, albeit slightly down compared to the prior year. Sales for electric vehicles remained buoyant, as did other transportation markets (rail and aeronautics). Sales were stable in power electronics.

Europe reported moderate growth, driven by an improvement in the transportation (rail, aeronautics and electric vehicles) and SiC semiconductor markets, partially offset by a decline in renewable energies and electrical distribution. Business remained strong in both France and Italy, while Germany saw a decline, due to the local economic climate.

In Asia, Group sales dipped 1.2% compared with last year, mainly as a result of a sharp slowdown in the production of solar cells in China toward the end of the year. India and South Korea, on the other hand, demonstrated strong growth, driven by the rail and energy storage markets, respectively.

North America posted growth in both segments, with particularly good performances in the aeronautics and chemicals markets. As expected, electrical distribution contracted from the very high level of activity in 2023, while the other process industries remained buoyant. SiC semiconductors saw slight growth in sales, but this did not offset the decline in Si semiconductors.

Fourth-quarter 2024 sales

Mersen generated consolidated sales of $324 million in the fourth quarter of 2024, representing a slight year-on-year decline of 0.6% on an organic basis. Driven by the acquisitions made in the second half of the year, reported growth is positive at 3.2%.

The scope effect corresponds to the disposal of a rail brush business in China in April 2024, and to
the consolidation of GMI starting July 1, 2024, of KTK starting October 1, 2024, and of Bar-Lo starting
November 1, 2024.

The currency effect is slightly positive, and the most significant exchange rate fluctuations concerned the depreciation of the Brazilian real and the South Korean won, as well as the appreciation of the US dollar.

In millions of euros Q4 2024 Q4 2023 Organic growth Scope effect Currency effect Reported growth
Advanced Materials 169.7 168.6 -5.0% 5.5% 0.1% 0.6%
Electrical Power 141.1 132.5 5.1% 1.1% 0.3% 6.5%
Europe 96.1 98.1 -2.9% 0.2% 0.8% -2.0%
Asie-Pacific 72.1 82.0 -12.0% -0.1% -0.1% -12.1%
North America 135.1 110.6 12.1% 9.6% 0.4% 22.2%
Rest of the World 7.5 10.5 -24.5% 0.0% -4.9% -28.2%
Group 310.8 301.1 -0.6% 3.6% 0.2% 3.2%

Over the quarter, sales in Europe were down in most countries. In Asia, the decline was mainly due to the sharp slowdown in solar cell production in China. In contrast, South Korea demonstrated strong growth, driven by rail and energy storage projects, while India benefited from a major chemicals project and continued momentum in the rail market. Lastly, in North America, momentum was maintained in most markets, particularly wind power, aeronautics and semiconductors.

2024 guidance

Based on 2024 sales, the Group expects an operating margin before non-recurring items of close to 10.5%, at the upper end of previous forecasts of between 10% and 10.5%.

Capital expenditure is expected to be around $229 million, in line with forecasts.

Non-recurring items are expected to amount to nearly $26 million, mainly comprising expenses and provisions relating to the adaptation plan announced in December.

Net debt should be below $417 million at year-end, compared to between $417 million and $448 million communicated last December.

 

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