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Pfeiffer Vacuum Technology AG Earnings Release 2019
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Earnings Release
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Corporate | 7 May 2019 07:50
Pfeiffer Vacuum Technology AG: Business development weaker in the first quarter 2019 as planned
DGAP-News: Pfeiffer Vacuum Technology AG / Key word(s): Quarter Results
07.05.2019 / 07:50
The issuer is solely responsible for the content of this announcement.
PRESS RELEASE
Pfeiffer Vacuum: Business development weaker in the first quarter 2019 as planned
– Sales of EUR 153.7 million 9.8% lower than in the previous year
– EBIT amounts to EUR 18.1 million
– EBIT margin reaches 11.8%
– Incoming orders of EUR 148.8 million in the first quarter 2019
Asslar, Germany, May 7, 2019. Pfeiffer Vacuum, a leading global manufacturer of vacuum solutions, was not able to reach the previous year’s record sales in the first quarter of 2019. As expected sales decreased by 9.8% to EUR 153.7 million (previous year: EUR 170.4 million). This was mainly due to a slowdown of investments in the semiconductor and coatings markets. The geopolitical uncertainties in Europe, Asia and the US increased the reluctance of customers in the affected regions.
EBIT in the first quarter of 2019 came to EUR 18.1 million, which was a decrease of 33.9% over the previous year (EUR 27.5 million) and resulted in an EBIT margin of 11.8% (previous year: 16.1%). In addition to the decline in sales, the cost base, which is geared to further growth, had a negative impact on earnings and margin development.
At EUR 148.8 million, incoming orders were down 23.3% compared to the first quarter of the previous year (EUR 194.0 million). The book-to-bill ratio remained stable at 0.97 and was thus in line with the figure for the fourth quarter of 2018.
Overview of key figures:
| Q1/2019 | Q1/2018 | Change | |
| Sales | EUR 153.7 million | EUR 170.4 million | -9.8% |
| EBIT | EUR 18.1 million | EUR 27.5 million | -33.9% |
| Net income | EUR 12.9 million | EUR 19.8 million | -34.7% |
| Earnings per share | EUR 1.31 | EUR 2.00 | -34.5% |
| Order income | EUR 148.8 million | EUR 194.0 million | -23.3% |
| Order backlog | EUR 140.0 million | EUR 151.0 million | -7.3% |
Nathalie Benedikt, CFO of Pfeiffer Vacuum Technology AG, comments on the results of the first quarter of 2019: “As forecasted, incoming orders and sales were weaker in the first quarter. At the same time, we have geared the Group towards further growth. Increased costs initially have a negative impact on profitability. In the long term, we see sales and EBIT margins intact and confirm our long-term targets.”
Decline in sales especially in Asia
In the breakdown of sales by region, which allocates sales according to the headquarters of customers in the corresponding regions, Europe showed a decline of 6.1% to EUR 58.6 million (previous year: EUR 62.4 million). Sales in Asia decreased by 17.8% to EUR 54.9 million (previous year: EUR 66.8 million). In relative terms, North and South America showed the smallest decline in sales of 2.5% to EUR 40.2 million (previous year: EUR 41.3 million).
Diversified product portfolio with growth in service and systems
Sales of turbopumps remained more or less at the previous year’s level and amounted to EUR 47.0 million (previous year: EUR 47.2 million). Turbopumps were once again a key product, representing a share of 30.6% of total sales (previous year: 27.7%). Sales of instruments and components decreased by 17.2% to EUR 42.2 million (previous year: EUR 51.0 million). The product group’s share of total sales fell to 27.5% (previous year: 29.9%). With a sales volume of EUR 31.5 million, backing pumps recorded a decline of 22.5% compared to the previous year (EUR 40.7 million). Backing pumps contributed to the total balanced sales distribution of the Pfeiffer Vacuum Group with a share of total sales of 20.5% (previous year: 23.9%). Sales from services rose by 4.2% to EUR 28.3 million (previous year: EUR 27.1 million), thereby increasing the share of total sales to 18.4% (previous year: 15.9%). Systems, a predominantly project-oriented area, increased sales by 4.9% over the previous year to EUR 4.7 million (previous year: EUR 4.5 million). The total share of systems in sales was 3.1% (previous year: 2.6%).
Semiconductor market weaker, industry and analytics pleasing
Pfeiffer Vacuum’s market segments developed very differently in the first quarter. The semiconductor market recorded a volume of EUR 53.5 million (previous year: EUR 70.1 million), which is a decline of 23.7%. With 34.8% (previous year: 41.4%), the semiconductor market represented the largest share of total sales. Sales in the coatings market fell by 13.7% to EUR 21.6 million (previous year: EUR 25.1 million). At 14.1% (previous year: 14.7%), the coatings market almost maintained its share of total sales. In the analytics market, sales increased by 5.1% to EUR 30.2 million (previous year: EUR 28.7 million). With a share of 19.6% of total sales (previous year: 16.8 %), business in analytics has once again grown in importance compared to the previous year. The heterogeneous industry market segment, with customers from sectors ranging from the automotive to the pharmaceutical industry, recorded an increase in sales of 10.8% to EUR 33.9 million (previous year: EUR 30.6 million). With a share of 22.1%, industry is the second strongest customer market after the semiconductor market (previous year: 18.0%). Sales in the research and development market segment fell by 8.6% to EUR 14.5 million (previous year: EUR 15.9 million). The share of total sales remained almost constant at 9.4% (previous year: 9.3%).
Gross profit in the reporting period decreased by 13.6% to EUR 55.7 million (previous year: EUR 64.4 million), which corresponds to a decline of EUR 8.7 million. The gross margin fell by 1.6 percentage points to 36.2% (previous year: 37.8%). Despite the decline in sales, the gross margin was disproportionately impacted. This was mainly due to an advantageous product and customer mix.
The financial result of EUR -0.2 million roughly matched the previous year’s figure of EUR -0.1 million due to the unchanged low interest rate in the Eurozone. The tax rate increased by 0.5 percentage points to 28.2% (previous year: 27.7%).
Net income decreased by 34.7% to EUR 12.9 million (previous year: EUR 19.8 million). Return on sales after tax – the ratio of net income to net sales – was at 8.4% (previous year: 11.6%). Parallel to net income, earnings per share decreased to EUR 1.31 (previous year: EUR 2.00).
Dr. Eric Taberlet, CEO of Pfeiffer Vacuum Technology AG, sees the previous assessment of the market as confirmed: “The first weeks of the second quarter show that sales and the order situation continue to be impacted by weak demand in the semiconductor market. A more detailed outlook on the expected business development and a forecast for the year as a whole will be provided in connection with the Annual General Meeting on May 23, 2019.”
**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 approx. 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 months ended March 31, | ||||
| 2019 | 2018 | |||
| in KEUR | in KEUR | |||
| Net sales | 153,733 | 170,421 | ||
| Cost of sales | -98,064 | -106,019 | ||
| Gross profit | 55,669 | 64,402 | ||
| Selling and marketing expenses | -18,047 | -17,534 | ||
| General and administrative expenses | -13,200 | -12,552 | ||
| Research and development expenses | -7,511 | -6,827 | ||
| Other operating income | 2,178 | 1,983 | ||
| Other operating expenses | -946 | -2,016 | ||
| Operating profit | 18,143 | 27,456 | ||
| Financial expenses | -222 | -193 | ||
| Financial income | 36 | 62 | ||
| Earnings before taxes | 17,957 | 27,325 | ||
| Income taxes | -5,064 | -7,569 | ||
| Net income | 12,893 | 19,756 | ||
| Earnings per share (in EUR): | ||||
| Basic | 1.31 | 2.00 | ||
| Diluted | 1.31 | 2.00 | ||
| Consolidated Balance Sheets (unaudited) | ||||
| March 31, 2019 | December 31, 2018 | |||
| in KEUR | in KEUR | |||
| Assets | ||||
| Intangible assets | 109,834 | 109,460 | ||
| Property, plant and equipment | 146,307 | 126,143 | ||
| Investment properties | 418 | 424 | ||
| Other financial assets | 4,444 | 4,282 | ||
| Other assets | 1,242 | 3,200 | ||
| Deferred tax assets | 25,350 | 24,895 | ||
| Total non-current assets | 287,595 | 268,404 | ||
| Inventories | 148,813 | 133,191 | ||
| Trade accounts receivable | 81,984 | 92,164 | ||
| Contract assets | 333 | 298 | ||
| Income tax receivables | 3,303 | 3,726 | ||
| Prepaid expenses | 5,971 | 3,504 | ||
| Other financial assets | 840 | 609 | ||
| Other accounts receivable | 13,008 | 13,884 | ||
| Cash and cash equivalents | 110,224 | 108,380 | ||
| Total current assets | 364,476 | 355,756 | ||
| Total assets | 652,071 | 624,160 | ||
| Shareholders’ equity and liabilities | ||||
| Share capital | 25,261 | 25,261 | ||
| Additional paid-in capital | 96,245 | 96,245 | ||
| Retained earnings | 291,784 | 278,891 | ||
| Other equity components | -24,660 | -28,172 | ||
| Equity of Pfeiffer Vacuum Technology AG shareholders | 388,630 | 372,225 | ||
| Financial liabilities | 71,872 | 60,182 | ||
| Provisions for pensions | 56,637 | 55,638 | ||
| Deferred tax liabilities | 4,622 | 4,638 | ||
| Contract liabilities | 544 | 630 | ||
| Total non-current liabilities | 133,675 | 121,088 | ||
| Trade accounts payable | 37,132 | 38,054 | ||
| Contract liabilities | 17,244 | 18,271 | ||
| Other accounts payable | 26,272 | 25,740 | ||
| Provisions | 37,445 | 41,626 | ||
| Income tax liabilities | 7,168 | 7,061 | ||
| Financial liabilities | 4,505 | 95 | ||
| Total current liabilities | 129,766 | 130,847 | ||
| Total shareholders’ equity and liabilities | 652,071 | 624,160 | ||
| Consolidated Statements of Cash Flows (unaudited) | ||||
| Three months ended March 31, | ||||
| 2019 | 2018 | |||
| in KEUR | in KEUR | |||
| Cash flow from operating activities: | ||||
| Net income | 12,893 | 19,756 | ||
| Depreciation/amortization | 5,650 | 5,094 | ||
| Other non-cash income/expenses | 1,146 | 386 | ||
| Effects of changes of assets and liabilities: | ||||
| Inventories | -15,959 | -8,909 | ||
| Receivables and other assets | 9,654 | -15,185 | ||
| Provisions, including pensions, and income tax liabilities | -3,371 | 1,904 | ||
| Payables, other liabilities | -1,868 | 5,584 | ||
| Net cash provided by operating activities | 8,145 | 8,630 | ||
| Cash flow from investing activities: | ||||
| Capital expenditures | -5,608 | -3,559 | ||
| Proceeds from disposals of fixed assets | 35 | 89 | ||
| Net cash used in investing activities | -5,573 | -3,470 | ||
| Cash flow from financing activities: | ||||
| Principal elements of lease payments | -1,033 | – | ||
| Proceeds from increase of financial liabilities | 163 | – | ||
| Redemptions of financial liabilities | – | -18 | ||
| Net cash used in financing activities | -870 | -18 | ||
| Effects of foreign exchange rate changes on cash and cash equivalents | 142 | -266 | ||
| Net change in cash and cash equivalents | 1,844 | 4,876 | ||
| Cash and cash equivalents at beginning of period | 108,380 | 97,402 | ||
| Cash and cash equivalents at end of period | 110,224 | 102,278 | ||
07.05.2019 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: | 807775 |
| End of News | DGAP News Service |