Pfeiffer Vacuum Technology AG - Earnings Release 2018

News Details

Corporate | 2 August 2018 07:59

Pfeiffer Vacuum: H1 2018 Sales increase by 22.4% compared to the previous year

DGAP-News: Pfeiffer Vacuum Technology AG / Key word(s): Half Year Results

02.08.2018 / 07:59

The issuer is solely responsible for the content of this announcement.

PRESS RELEASE

Pfeiffer Vacuum: H1 2018 Sales increase by 22.4% compared to the previous year

– Sales increase to EUR 338.2 million: +22.4%

– EBIT reaches EUR 47.8 million: +36.2%

– EBIT-margin: 14.1%, adjusted: 15.3%

– Order intake: EUR 174 million in Q2 2018

Asslar, August 2, 2018. Pfeiffer Vacuum, a leading global manufacturer of vacuum solutions, managed to increase sales by 22.4% to EUR 338.2 million compared to the previous year, a continuation of its encouraging start to the first half of the year. Of its total sales, EUR 33.4 million was generated by the companies acquired in 2017, which allowed for growth of 12.9% from stock units to be recorded. EBIT rose to EUR 47.8 million or by 36.2%. The EBIT-margin was 14.1%. Adjusted for PPA-effects, EBIT reached EUR 51.7 million at an adjusted EBIT-margin of 15.3%. The order intake in the second quarter, which was again positive at EUR 174.0 million, indicates the expected delays in orders from semiconductor customers. Accordingly subdued development has been confirmed for the second half of the year. The book-to-bill ratio as of June 30, 2018 amounted to 1.09.

Overview of key figures:


	H1 2018	H1 2017*	Change

Sales	EUR 338.2 million	EUR 276.2 million	+22.4%
thereof from acquisitions	EUR 33.4 million	EUR 6.2 million
EBIT	EUR 47.8 million	EUR 35.1 million	+36.2%
Adjusted EBIT	EUR 51.7 million	EUR 35.9 million	+43.8%
	H1 2018	H1 2017*	Change

Net result	EUR 34.4 million	EUR 24.2 million	+41.9%
Earnings per share	EUR 3.48	EUR 2.46	+41.5%

Order intake	EUR 368.0 million	EUR 318.5 million	+15.5%
thereof from acquisitions	EUR 37.9 million	EUR 22.9 million
Order backlog	EUR 157.2 million	EUR 114.6 million	+37.2%


	Q2 2018	Q2 2017*	Change

Sales	EUR 167.8 million	EUR 139.3 million	+20.5%
thereof from acquisitions	EUR 17.3 million	EUR 4.1 million
EBIT	EUR 20.3 million	EUR 13.9 million	+45.8%
Adjusted EBIT	EUR 22.3 million	EUR 14.6 million	+52.9%
	Q2 2018	Q2 2017*	Change

Net result	EUR 14.6 million	EUR 9.6 million	+52.9%
Earnings per share	EUR 1.48	EUR 0.79	+52.6%

Order intake	EUR 174.0 million	EUR 172.0 million	+1.2%
thereof from acquisitions	EUR 20.9 million	EUR 18.8 million	+13%

H1 and Q2 2017 values adjusted in some cases according to effects from the purchase price allocation for the companies Nor-Cal, ATC and Dreebit, which was carried out retroactively

Nathalie Benedikt, CFO comments: “Pfeiffer Vacuum was able to increase sales and earnings in the second quarter. We are in line with the three-year investment program. In the first half of the year, investments amounting to approximately EUR 20 million were commissioned in machines, buildings and IT infrastructure. In the second quarter EUR 8.9 million has been capitalized.”

Additional sales were gained across all business units in the first half of the year. Business in the coatings market developed exceptionally well with an increase of 62.1% to a volume of EUR 53.8 million. Announcements of cuts in public funds for solar energy feed in tariffs by the Chinese government do not have an impact on our business according to current estimates. In the semiconductor customer market, sales increased by 26.9% to a record volume of EUR 136.1 million. Analytics business increased by 21.1% to EUR 57.7 million compared to the same period in the previous year. Sales increased by 6.7% to EUR 29.5 million with research and development customers. At EUR 61.2 million, sales were stable in the heterogeneous business with industrial customers compared to the previous year.

According to product groups, turbopumps and backing pumps, with sales of EUR 94.4 million and EUR 80.6 million, achieved the highest organically generated growth compared to the previous year of 13.3% and 18.9%, respectively. Business in instruments and components recorded a significant volume in the first half of the year of EUR 100.1 million, rising by 52.6%. This figure includes acquisition-related growth of EUR 30.6 million. Systems showed an extremely pleasing performance with an increase of 57.0% compared to the previous year to a volume of EUR 8.5 million. Service achieved slightly improved sales compared to the previous year of EUR 54.7 million.

From a regional perspective, Asia continues to be the most important sales market for vacuum solutions, with a sales volume of EUR 133.1 million. This is followed by Europe with sales of EUR 120.0 million in the first half of the year and North and South America with EUR 85.1 million. In relative terms, especially taking into account the acquisition-related share of sales of EUR 26.4 million, North and South America showed the largest increase by far of 36.4% compared to the previous year.

In a quarter on quarter analysis gross margin was reduced by 4.3 percentage points to 33.5% in the second quarter, due to the product and customer mix and a lower amount of production days because of federal holidays and vacation days.

For Dr. Eric Taberlet, CEO of Pfeiffer Vacuum Technology AG, the figures confirm the expected developments. “The latest market data from the semiconductor industry and the delays in the capacity extensions of our customers relativize the record levels from the beginning of the year. Nevertheless, we are convinced that we will achieve our goals for the year as a whole. The increased momentum in implementing our strategy will allow us to expand our locations in Romania, North America and Vietnam in the second half of the year.”

**Contact

Pfeiffer Vacuum Technology AG**

Investor Relations

Dinah Reiss

T +49 6441 802 1346

F +49 6441 802 1365

[email protected]

Short profile

Pfeiffer Vacuum (ticker symbol PFV, ISIN DE0006916604) is a leading global manufacturer of vacuum solutions. Among a full range of hybrid and magnetically levitated turbopumps, the portfolio comprises backing pumps, measurement and analysis devices, components and vacuum chambers and systems. Pfeiffer Vacuum has stood for innovative solutions and high-tech products in analytics, industry, research & development, coating and semiconductor markets since its invention of the turbopump over 125 years ago. Founded in 1890, Pfeiffer Vacuum is active worldwide today. Pfeiffer Vacuum has eight manufacturing sites in Europe, Asia and North America. The company employs approx. 3,000 employees worldwide and has over 20 sales and service companies.

For more information, please go to: group.pfeiffer-vacuum.com


Consolidated Statements of Income (unaudited) PFEIFFER VACUUM TECHNOLOGY AG


	Three months ended June 30,			Six months ended June 30,
	2018	2017		2018
		adjusted 1
	in KEUR	in KEUR		in KEUR
Net sales	167,791	139,290		338,212
Cost of sales	-111,564	-90,726		-217,583
Gross profit	56,227	48,564		120,629

Selling and marketing expenses	-17,816	-15,068		-35,350
General and administrative expenses	-13,210	-13,255		-25,762
Research and development expenses	-7,223	-6,829		-14,050
Other operating income	3,419	4,264		5,402
Other operating expenses	-1,100	-3,752		-3,116
Operating profit	20,297	13,924		47,753

Financial expenses	-153	-233		-346
Financial income	73	46		135
Earnings before taxes	20,217	13,737		47,542

Income taxes	-5,600	-4,176		-13,169

Net income	14,617	9,561		34,373

Earnings per share (in EUR):
Basic	1.48	0.97		3.48
Diluted	1.48	0.97		3.48


1 Due to the completion of the purchase price allocation for the Dreebit, ATC and Nor-Cal acquisitions in fiscal 2017 some of the amounts shown above were adjusted retroactively and thus differ from the amounts reported in the Half Year Financial Statements for the second quarter 2017.
Consolidated Balance Sheets (unaudited) PFEIFFER VACUUM TECHNOLOGY AG


			June 30, 2018
			in KEUR
Assets
Intangible assets			109,565
Property, plant and equipment			112,207
Investment properties			436
Deferred tax assets			23,000
Other non-current assets			4,825
Total non-current assets			250,033

Inventories			125,735
Trade accounts receivable			88,152
Income tax receivables			2,879
Prepaid expenses			4,227
Other accounts receivable			12,652
Cash and cash equivalents			97,167
Total current assets			330,812

Total assets			580,845

Shareholders’ equity and liabilities
Share capital			25,261
Additional paid-in capital			96,245
Retained earnings			244,385
Other equity components			-27,717
Equity of Pfeiffer Vacuum Technology AG shareholders			338,174

Financial liabilities			60,215
Provisions for pensions			51,248
Deferred tax liabilities			4,037
Total non-current liabilities			115,500

Trade accounts payable			41,519
Customer deposits			12,850
Other accounts payable			26,029
Provisions			39,349
Income tax liabilities			7,225
Financial liabilities			199
Total current liabilities			127,171

Total shareholders’ equity and liabilities			580,845


Consolidated Statements of Cash Flows (unaudited) PFEIFFER VACUUM TECHNOLOGY AG


	Six months ended June 30,
	2018	2017
		adjusted 1
	in KEUR	in KEUR
Cash flow from operating activities:
Net income	34,373	24,226
Depreciation/amortization	10,256	9,599
Other non-cash income/expenses	1,022	518
Effects of changes of assets and liabilities:
Inventories	-12,633	-10,628
Receivables and other assets	-10,864	-744
Provisions, including pensions, and income tax liabilities	380	-1,549
Payables, other liabilities	9,334	5,213
Net cash provided by operating activities	31,868	26,635

Cash flow from investing activities:
Payments for acquisitions	–	-74,594
Capital expenditures	-12,529	-12,342
Proceeds from disposals of fixed assets	129	82
Net cash used in investing activities	-12,400	-86,854

Cash flow from financing activities:
Proceeds from increase of financial liabilities	77	70,000
Dividend payment	-19,735	-35,524
Redemptions of financial liabilities	–	-15,661
Net cash provided by/used in financing activities	-19,658	18.815

Effects of foreign exchange rate changes on cash and cash equivalents	-45	314

Net change in cash and cash equivalents	-235	-41,091

Cash and cash equivalents at beginning of period	97,402	110,032

Cash and cash equivalents at end of period	97,167	68,941


1 Due to the completion of the purchase price allocation for the Dreebit, ATC and Nor-Cal acquisitions in fiscal 2017 some of the amounts shown above were adjusted retroactively and thus differ from the amounts reported in the Half Year Financial Statements for the second quarter 2017.

02.08.2018 Dissemination of a Corporate News, transmitted by DGAP – a service of EQS Group AG.

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Language:	English
Company:	Pfeiffer Vacuum Technology AG
	Berliner Str. 43
	35614 Asslar
	Germany
Phone:	+49 6441 802-0
Fax:	+49 6441 802-1365
E-mail:	[email protected]
Internet:	www.pfeiffer-vacuum.de
ISIN:	DE0006916604
WKN:	691660
Indices:	TecDAX
Listed:	Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange