Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

AZ Electronic Posts Profit on iPad, Mobile-Phone Compounds

Aug. 25 (Bloomberg) -- AZ Electronic Materials SA, a maker of chemicals for flat-panel television sets that sold shares to the public in October, posted a first-half profit as it sold more compounds used in mobile phones and Apple Inc.’s iPad.

Net income was $40.9 million, or 10.7 cents per share, for the period ending June 30, compared with a loss of $321.4 million, or 151.9 cents, a year earlier, when AZ had higher financing costs associated with its private-equity ownership, the Luxembourg-based company said today in a statement. Sales increased 22 percent to $391.8 million.

“We’re seeing strong growth in the memory that fuels the iPads and the mobile displays,” Chief Executive Officer Geoff Wild said in a telephone interview. “We are gaining market share and additional layers and applications for our materials faster than any slowdown in the market.”

About 80 percent of AZ’s sales come from Asia, and the company expects demand for its chemicals, which are used to produce flash memory, microprocessors and hard disk drives, to increase in countries such as Japan and South Korea even amid uncertainty over global growth, Wild said.

AZ may spend as much as $25 million on research and development for the second half of the year, about the same as during the past six months, and will return $15 million to shareholders with its first dividend in October, Wild said.

Shares advanced as much as 10 percent to 232.6 pence and traded at 231.7 pence at 9:58 a.m. in London, giving the company a market value of 882.6 million pounds ($1.5 billion).

To contact the reporter on this story: Charles Mead in London at cmead11@bloomberg.net

To contact the editor responsible for this story: Colin Keatinge at ckeatinge@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.