Pfeiffer Vacuum Technology AG - Earnings Release 2019

News Details

Corporate | 5 November 2019 07:30

Pfeiffer Vacuum Technology AG: Pfeiffer Vacuum delivers revenue growth in Q3 2019 in challenging market environment. Full-year outlook confirmed.

DGAP-News: Pfeiffer Vacuum Technology AG / Key word(s): 9 Month figures

05.11.2019 / 07:30

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

PRESS RELEASE

Pfeiffer Vacuum delivers revenue growth in Q3 2019 in challenging market environment. Full-year outlook confirmed.

– Order intake in third quarter was highest quarter in FY 2019

– Sales growth of 2% in Q3 2019 year-over-year

– Sales of EUR 467.3 million, EBIT of EUR 48.9 million, and EBIT margin of 10.5% for 9 months 2019

– Outlook for the full fiscal year 2019 confirmed

Asslar, Germany, November 5, 2019. Pfeiffer Vacuum, a leading global manufacturer of vacuum solutions, reports financial results for the third quarter and nine months ending September 30, 2019.

For the third quarter 2019, sales reached EUR 156.2 million, up 2.0% compared to the same period in 2018, and EBIT was EUR 16.1 million, down 22.6%. Year-to-date 2019, sales were EUR 467.3 million, down 4.9% compared to the same period in 2018. In the first nine months 2019, sales were impacted primarily by declines in the semiconductor and coating market. Third quarter 2019 was the first quarter in 2019 where sales in the semiconductor market improved year-over-year. The company is in an investment phase, which in addition to sales performance impacts the EBIT margin.

“Market indicators in the semiconductor and coating market are stabilizing, and we expect demand will accelerate in 2020,” says Dr. Eric Taberlet, CEO of Pfeiffer Vacuum Technology AG. “We are executing an ambitious investment plan to drive increased market share and earnings improvements and I am pleased with the progress we are making.”

Overview of key figures:


	9M/2019	9M/2018	Change

Sales	EUR 467.3 million	EUR 491.3 million	-4.9%
EBIT	EUR 48.9 million	EUR 68.5 million	-28.6%
Net income	EUR 34.7 million	EUR 49.3 million	-29.5%
Earnings per share	EUR 3.52	EUR 4.99	-29.5%
Order intake	EUR 450.00 million	EUR 516.6 million	-12.9%


	Q3 2019	Q3 2018	Change

Sales	EUR 156.2 million	EUR 153.1 million	+2.0%
EBIT	EUR 16.1 million	EUR 20.7 million	-22.6%
Net income	EUR 11.4 million	EUR 14.9 million	-23.2%
Earnings per share	EUR 1.16	EUR 1.51	-23.2%
Order intake	EUR 156.3 million	EUR 148.6 million	+5.2%

Nathalie Benedikt, CFO of Pfeiffer Vacuum Technology AG, comments: “We are in a very important investment phase. Over a multi-year period we are investing EUR 150 million to drive growth and profitability. We expect to realize the full benefits of this investment program by 2025.”

Orders

Third quarter 2019 orders were EUR 156.3 million, the highest level for 2019, compared to EUR 148.8 million in the first quarter and EUR 144.9 million in the second quarter 2019.

Sales by Market, Product Group and Geographic Regions

For the nine months ending September 30, 2019, sales decreased by 4.9% to EUR 467.3 million. The year-over-year decline was related to weakness in sales from the semiconductor market, which decreased year-over-year by 15.9% to EUR 156.5 million as well as declines in the coating market of 20.1% to EUR 61.5 million. This was partially offset by strong demand in the industry market segment, which increased 13.9% to EUR 110.0 million, research & development (R&D) business, which grew 10.6% to EUR 48.8 million, and analytics, up 3.5% to EUR 90.5 million.

In terms of product groups, turbopumps recorded the largest sales, with the most significant year-over-year sales increases of 2.9% to EUR 145.2 million year-to-date. Year-over-year sales also improved for service, by 1.2% to EUR 84.3 million, and systems by 2.1% to EUR 11.6 million. This was offset by year-over-year sales declines for instruments and components of 9.1% to EUR 132.2 million and backing pumps by 14.7% to EUR 93.9 million, primarily related to the semiconductor and coating market conditions.

While sales in all geographic regions declined year-over-year for the first 9 months, the primary decline was in Asia, with 9.4% to EUR 167.6 million. Third quarter 2019 sales grew year-over-year in all geographic regions.

Operating Performance

EBIT for the nine months ending September 30, 2019 was EUR 48.9 million or 10.5% of sales, compared to EUR 68.5 million and 13.9% for the same period in 2018. The year-over-year decline was due to lower sales and expanded costs related to strategic investments to achieve higher market share and EBIT margin of above 20%. Foreign currency effects had a slightly positive impact on results.

Outlook

For fiscal year 2019, Pfeiffer Vacuum expects sales of EUR 620 to 640 million, and an EBIT margin of around 10%. In addition, capital expenditures are expected to be about EUR 30 million.

**Contact

Pfeiffer Vacuum Technology AG**

Investor Relations

Heide Erickson

T +49 6441 802 1360

[email protected]

About Pfeiffer Vacuum

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, leak detectors, 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, coatings and semiconductor markets since its invention of the turbopump. Founded in 1890, Pfeiffer Vacuum is active worldwide. The Company employs approximately 3,200 employees, has over 20 sales and service companies, and operates 10 manufacturing sites worldwide.

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


Consolidated Statements of Income (unaudited)


	Three months ended September 30,		Nine months ended September 30,
	2019	2018	2019	2018

	in KEUR	in KEUR	in KEUR	in KEUR
Net sales	156,225	153,118	467,333	491,330
Cost of sales	-103,805	-97,177	-305,909	-314,760
Gross profit	52,420	55,941	161,424	176,570

Selling and marketing expenses	-16,965	-17,204	-53,267	-52,554
General and administrative expenses	-14,579	-12,689	-40,906	-38,451
Research and development expenses	-6,423	-6,653	-21,235	-20,703
Other operating income	2,315	2,282	5,800	7,684
Other operating expenses	-709	-928	-2,912	-4,044
Operating profit	16,059	20,749	48,904	68,502

Financial expenses	-205	-198	-648	-544
Financial income	59	39	121	174
Earnings before taxes	15,913	20,590	48,377	68,132

Income taxes	-4,486	-5,705	-13,641	-18,874

Net income	11,427	14,885	34,736	49,258

Earnings per share (in EUR):
Basic	1,16	1,51	3,52	4,99
Diluted	1,16	1,51	3,52	4,99


Consolidated Balance Sheets (unaudited)


	September 30, 2019	December 31, 2018
	in KEUR	in KEUR
Assets
Intangible assets	109,932	109,460
Property, plant and equipment	149,743	126,143
Investment properties	407	424
Other financial assets	3,801	4,282
Other assets	1,392	3,200
Deferred tax assets	27,675	24,895
Total non-current assets	292,950	268,404

Inventories	141,676	133,191
Trade accounts receivable	88,327	92,164
Contract assets	518	298
Income tax receivables	3,459	3,726
Prepaid expenses	5,514	3,504
Other financial assets	1,134	609
Other accounts receivable	10,388	13,884
Cash and cash equivalents	99,622	108,380
Total current assets	350,638	355,756

Total assets	643,588	624,160

Shareholders’ equity and liabilities
Share capital	25,261	25,261
Additional paid-in capital	96,245	96,245
Retained earnings	290,931	278,891
Other equity components	-28,238	-28,172
Equity of Pfeiffer Vacuum Technology AG shareholders	384,199	372,225

Financial liabilities	69,921	60,182
Provisions for pensions	64,952	55,638
Deferred tax liabilities	4,606	4,638
Contract liabilities	348	630
Total non-current liabilities	139,827	121,088

Trade accounts payable	31,822	38,054
Contract liabilities	14,383	18,271
Other accounts payable	25,147	25,740
Provisions	41,298	41,626
Income tax liabilities	3,506	7,061
Financial liabilities	3,406	95
Total current liabilities	119,562	130,847

Total shareholders’ equity and liabilities	643,588	624,160


Consolidated Statements of Cash Flows (unaudited)


	Nine months ended September 30,
	2019	2018

	in KEUR	in KEUR
Cash flow from operating activities:
Net income	34,736	49,258
Depreciation/amortization	17,487	14,943
Other non-cash income/expenses	3,455	1,617
Effects of changes of assets and liabilities:
Inventories	-11,038	-24,298
Receivables and other assets	6,389	-13,648
Provisions, including pensions, and income tax liabilities	-3,566	6,324
Payables, other liabilities	-11,950	3,187
Net cash provided by operating activities	35,513	37,383

Cash flow from investing activities:
Payments for acquisitions	–	–
Capital expenditures	-19,307	-24,038
Proceeds from disposals of fixed assets	293	217
Net cash used in investing activities	-19,014	-23,821

Cash flow from financing activities:
Proceeds from increase of financial liabilities	632	63
Dividend payment	-22,696	-19,735
Redemptions of financial liabilities	-3,448	–
Net cash provided by/used in financing activities	-25,512	-19,672

Effects of foreign exchange rate changes on cash and cash equivalents	255	-490

Net changes in cash and cash equivalents	-8,758	-6,600

Cash and cash equivalents at beginning of period	108,380	97,402

Cash and cash equivalents at end of period	99,622	90,802

05.11.2019 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:	SDAX, TecDAX
Listed:	Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange
EQS News ID:	904199