Versum Materials, Inc. has posted a “strong financial chapter” in its first full-year financial results since becoming a stand-alone company following its spin-off from Tier One player Air Products and Chemicals, Inc.
The leading materials and equipment supplier to the semiconductor industry released its fourth quarter and full fiscal year results, ended 30th September 2016, in which net income for the fourth quarter of $45m was up 5% versus the comparable prior year period. Overall fiscal 2016 net income of $212m was also up versus the prior year, rising by 15%.
Despite the overall increase in revenue, Versum’s sales for the fiscal year showed a 4% year-on-year decrease – dropping from $1bn to $970m. The company assigned the decline to lower turnkey installation activity, the impact of exited product lines and unfavourable currency, which more than offset positive prices in its Materials segment.
However, net income boosted Versum’s performance, rising from $184m to $212m. Adjusted full-year EBITDA of $326.9m versus $301.5m showed an 8% year-on-year (YoY) improvement as a result of improved operating productivity.
Sales for the fourth quarter stood at $248m compared to $232m for the comparable period in fiscal year 2015 – a YoY increase of 7% which the company attributes to stronger equipment sales and growth in its Advanced Materials product lines. Versum said this sales increase offset capacity constraints and lower volumes across its Process Materials product lines.
Net income for the fourth quarter reached $45.2m and included business separation, restructuring and cost reduction actions of $2.5m and $7.1m, respectively. According to Versum, this 5% increase was a result of stronger operating results offset by a higher tax provision.
“This fourth quarter closes a strong final chapter as a subsidiary of Air Products and sets us up for a bright future ahead as an independent company”
Guillermo Novo, President and CEO of Versum Materials
For fiscal year 2017, Versum anticipates sales of $990m-1bn and adjusted EBITDA of $300-350m, in each case excluding certain product lines that were historically managed by Versum but remained with Air Products.
Guillermo Novo, President and CEO of Versum Materials, underlined, “For the Versum team, this fourth quarter closes a strong final chapter as a subsidiary of Air Products and sets us up for a bright future ahead as an independent company.”
“With a broad portfolio of products and services, Versum is uniquely positioned to grow and lead through innovative solutions and services for our customers in the semiconductor industry.”
Air Products completed the separation of its Electronic Materials Division through the Versum spin-off in October, with the independent company commencing ‘regular way’ trading on the New York Stock Exchange (NYSE) on 3rd October.