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Pfeiffer Vacuum Technology AG Earnings Release 2019
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Earnings Release
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Corporate | 6 August 2019 07:25
Pfeiffer Vacuum Technology AG: Lower sales and additional investments limit growth and profitability. Positive momentum expected for market and sales in the second half of the year.
DGAP-News: Pfeiffer Vacuum Technology AG / Key word(s): Half Year Results
06.08.2019 / 07:25
The issuer is solely responsible for the content of this announcement.
PRESS RELEASE
Pfeiffer Vacuum: Lower sales and additional investments limit growth and profitability. Positive momentum expected for market and sales in the second half of the year.
– Sales of EUR 311.1 million 8.0% lower than in the previous year
– EBIT amounted to EUR 32.8 million
– EBIT margin reached 10.6%
– Order intake amounted to EUR 293.7 million
– Outlook confirmed: sales of EUR 640 to 660 million and EBIT margin of 11% to 14%
Asslar, Germany, August 6, 2019. Pfeiffer Vacuum, a leading global manufacturer of vacuum solutions, was not able to reach the previous year’s record sales in the first half of 2019. Sales decreased by 8.0% to EUR 311.1 million. The main reason for this was sustained weakness in demand, particularly in the semiconductor and coating market segments. However, the analytics, industry, and research & development (R&D) market segments exhibited continued growth momentum.
The gross profit declined by 9.6% to EUR 109.0 million. The gross margin reached 35.0%. EBIT of EUR 32.8 million in the first half of the year was 31.2% below the previous year’s figure. Diminishing economies of scale from manufacturing costs through weaker sales and an expanded cost basis due to additional investments to implement the Group’s growth strategy limited the EBIT margin to 10.6%. Foreign currency effects were another negative factor. At EUR 293.7 million, order intake was down 20.2% compared to the first half of the previous year (EUR 368.0 million). The book-to-bill ratio – the ratio of order intake to sales – came to 0.94 (previous year: 1.09).
Overview of key figures:
| H1 2019 | H1 2018 | Change | |
| Sales | EUR 311.1 million | EUR 338.2 million | -8.0% |
| EBIT | EUR 32.8 million | EUR 47.8 million | -31.2% |
| Net result | EUR 23.3 million | EUR 34.4 million | -32.2% |
| Earnings per share | EUR 2.36 | EUR 3.48 | -32.2% |
| Order intake | EUR 293.7 million | EUR 368.0 million | -20.2% |
| Q2 2019 | Q2 2018 | Change | |
| Sales | EUR 157.4 million | EUR 167.8 million | -6.2% |
| EBIT | EUR 14.7 million | EUR 20.3 million | -27.6% |
| Net result | EUR 10.4 million | EUR 14.6 million | -28.7% |
| Earnings per share | EUR 1.06 | EUR 1.48 | -28.4% |
| Order backlog | EUR 127.5 million | EUR 157.2 million | -18.9% |
Nathalie Benedikt, CFO of Pfeiffer Vacuum Technology AG, comments on the results: “The first half of the year went largely as expected, whereby the EBIT margin was exposed to further pressure from the implementation of our growth strategy. We are proceeding with our investments as planned. Volumes of more than EUR 50 million have been approved for 2019, most of which will be realized in the second half of the year.”
Sales development remained subdued in all regions. In Europe, sales declined by 4.2% to EUR 114.9 million. Sales in Asia decreased by 14.8% to EUR 113.4 million. In North and South America, sales decreased by 2.8% to EUR 82.7 million.
Turbopumps and service show positive development
Sales of turbopumps could be further increased to EUR 96.1 million. Turbopumps were once again a key product, contributing a 30.9% share of total sales. Sales from services rose to EUR 55.7 million. This increased the share of the service business in total sales to 17.9%. In the project-oriented systems business, sales increased by 5.4% from the previous year to EUR 8.9 million. Sales of instruments and components decreased by 12.9% to EUR 87.2 million. With a sales volume of EUR 63.2 million, backing pumps recorded a decline of 21.6% compared to the previous year.
Growth in industry, analytics and R&D
Sales in the industry market segment, with customers from the automotive and pharmaceutical industries, increased by 16.0% to EUR 70.9 million. With a share of 22.8%, industry is the second-largest customer market. In the analytics market, sales increased by 5.7% to EUR 61.0 million. With a share of 19.6% in total sales, the analytics business has once again gained importance. Sales in the research & development market segment rose by 8.2% to EUR 31.9 million which increased its share of total sales to 10.2%. With a volume of EUR 103.8 million, the semiconductor market recorded a decline of 23.7% as a result of weak demand. The market’s 33.4% share of total sales declined by 6.8%-points. Sales in the coating market fell by 19.2% to EUR 43.5 million so that the share of total sales declined to 14.0%.
Dr. Eric Taberlet, CEO of Pfeiffer Vacuum Technology AG, is looking optimistically toward the second half of 2019: “For the coming months I assume an increase in demand, confirming our expectation for sales growth in the second half of the year. The strategic cooperation with the Busch Group creates additional momentum. Working groups consisting of specialists from both companies are currently developing measures for the best possible realization of synergies. The results will be presented to the Group Business Committee, an advisory and decision-making body consisting of the Management Board members of both companies, this year. “
Pfeiffer Vacuum expects demand to increase in the second half of the year. The Management Board confirms the outlook for sales that was specified in mid-July of EUR 640 to 660 million, and an EBIT margin of 11% to 14% for 2019 as a whole.
**Contact
Pfeiffer Vacuum Technology AG**
Investor Relations
Dinah Reiss
T +49 6441 802 1346
F +49 6441 802 1365
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 today. The Company employs approximately 3,200 employees, has over 20 sales and service companies, and operates 8 manufacturing sites worldwide.
For more information, please go to: group.pfeiffer-vacuum.com
| Consolidated Statements of Income (unaudited) | ||||||||
| Three month ended June 30, | ||||||||
| 2019 | 2018 | |||||||
| in KEUR | in KEUR | |||||||
| Net sales | 157,375 | 167,791 | ||||||
| Cost of Sales | -104,040 | -111,564 | ||||||
| Gross Profit | 53,335 | 56,227 | ||||||
| Selling and marketing expenses | -18,255 | -17,816 | ||||||
| General and administrative expenses | -13,127 | -13,210 | ||||||
| Research and development expenses | -7,301 | -7,223 | ||||||
| Other operating income | 1,307 | 3,419 | ||||||
| Other operating expenses | -1,257 | -1,100 | ||||||
| Operating profit | 14,702 | 20,297 | ||||||
| Financial expenses | -221 | -153 | ||||||
| Financial income | 26 | 73 | ||||||
| Earnings before taxes | 14,507 | 20,217 | ||||||
| Income taxes | -4,091 | -5,600 | ||||||
| Net Income | 10,416 | 14,617 | ||||||
| Earnings per share (in EUR): | ||||||||
| Basic | 1.06 | 1.48 | ||||||
| Diluted | 1.06 | 1.48 | ||||||
| Consolidated Balance Sheets (unaudited) | ||||
| June 30, 2019 | December 31, 2018 | |||
| in kEUR | in kEUR | |||
| Assets | ||||
| Intangible assets | 108,096 | 109,460 | ||
| Property, plant and equipment | 147,461 | 126,143 | ||
| Investment properties | 412 | 424 | ||
| Other financial assets | 3,627 | 4,282 | ||
| Other assets | 1,243 | 3,200 | ||
| Deferred tax assets | 27,520 | 24,895 | ||
| Total non-current assets | 288,359 | 268,404 | ||
| Inventories | 143,561 | 133,191 | ||
| Trade accounts receivable | 82,668 | 92,164 | ||
| Contract assets | 332 | 298 | ||
| Income tax receivables | 3,961 | 3,726 | ||
| Prepaid expenses | 5,793 | 3,504 | ||
| Other financial assets | 314 | 609 | ||
| Other accounts receivable | 10,722 | 13,884 | ||
| Cash and cash equivalents | 93,359 | 108,380 | ||
| Total current assets | 340,710 | 355,756 | ||
| Total assets | 629,069 | 624,160 | ||
| Shareholders’ equity and liabilities | ||||
| Share capital | 25,261 | 25,261 | ||
| Additional paid-in capital | 96,245 | 96,245 | ||
| Retained earnings | 279,504 | 278,891 | ||
| Other equity components | -34,710 | -28,172 | ||
| Equity of Pfeiffer Vacuum Technology AG shareholders | 366,300 | 372,225 | ||
| Financial liabilities | 70,934 | 60,182 | ||
| Provisions for pensions | 65,137 | 55,638 | ||
| Deferred tax liabilities | 4,572 | 4,638 | ||
| Contract liabilities | 395 | 630 | ||
| Total non-current liabilities | 141,038 | 121,088 | ||
| Trade accounts payable | 35,327 | 38,054 | ||
| Contract liabilities | 15,913 | 18,271 | ||
| Other accounts payable | 26,041 | 25,740 | ||
| Provisions | 37,051 | 41,626 | ||
| Income tax liabilities | 3,523 | 7,061 | ||
| Financial liabilities | 3,876 | 95 | ||
| Total current liabilities | 121,731 | 130,847 | ||
| Total shareholders’ equity and liabilities | 629,069 | 624,160 | ||
| Consolidated Statements of Cash Flows (unaudited) | ||||
| Six month ended June 30, | ||||
| 2019 | 2018 | |||
| in kEUR | in kEUR | |||
| Cash flow from operating activities: | ||||
| Net income | 23,309 | 34,373 | ||
| Depreciation/amortization | 11,564 | 10,256 | ||
| Other non-cash income/expenses | 2,367 | 1,022 | ||
| Effects of changes of assets and liabilities: | ||||
| Inventories | -13,129 | -12,633 | ||
| Receivables and other assets | 10,894 | -10,864 | ||
| Provisions, including pensions, and income tax liabilities | -7,059 | 380 | ||
| Payables, other liabilities | -4,904 | 9,334 | ||
| Net cash provided by operating activities | 23,042 | 31,868 | ||
| Cash flow from investing activities: | ||||
| Capital expenditures | -13,034 | -12,529 | ||
| Proceeds from disposals of fixed assets | 102 | 129 | ||
| Net cash used in investing activities | -12,932 | -12,400 | ||
| Cash flow from financing activities: | ||||
| Principal elements of lease payments | -2,183 | – | ||
| Proceeds from increase of financial liabilities | – | 77 | ||
| Dividend Payments | -22,696 | -19,735 | ||
| Redemptions of financial liabilities | -23 | – | ||
| Net cash used in financing activities | -24,902 | -19,658 | ||
| Effects of foreign exchange rate changes on cash and cash equivalents | -229 | -45 | ||
| Net change in cash and cash equivalents | -15,021 | -235 | ||
| Cash and cash equivalents at beginning of period | 108,380 | 97,402 | ||
| Cash and cash equivalents at end of period | 93,359 | 97,167 | ||
06.08.2019 Dissemination of a Corporate News, transmitted by DGAP – a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
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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: | 852155 |
| End of News | DGAP News Service |