Mersen exceeds growth forecast and 'no impact' of US tariffs

Mersen, a French supplier of advanced materials, reported on Wednesday that its annual consolidated sales were higher than expected at 1.24 billion euro ($1.29 billion), representing organic growth of 2.6%.

Thomas Baumgartner, Mersen’s Chief Financial officer, told a conference call that the company had exceeded its initial organic growth projection of 1%-2%. He attributed it in part to a recovery on the silicon semiconductors market by the end of 2024.

Due to a slowdown on the electric vehicle market, the company, which counts Alstom, Samsung, and other clients as customers, has pushed its financial targets for 2027 back to 2029. The company has set a sales target of approximately 1.7 billion euro ($1.8 billion) as part of its 2027 financial targets.

Mersen could also be affected by potential tariffs imposed by the Trump administration. Baumgartner, however, said that he didn't expect any major impact. He noted that the company's local model of production and supply gives it a distinct advantage in terms of tariffs and exchange rate.

North America, driven by three acquisitions made in the United States was the only region to post sales growth of 12.1% in the fourth quarter. Europe saw a 2.9% drop in sales, Asia Pacific saw a 12% decline, and the rest of world fell by 24.5%.

The company expects an operating margin of 10.5% before non-recurring expenses by the end of 2024, which is at the top of its forecast.

(source: Reuters)