DGAP-News: Pfeiffer Vacuum Technology AG: Pfeiffer Vacuum benefits from strong semiconductor business and reports improved margins in Q3 2020
DGAP-News: Pfeiffer Vacuum Technology AG
/ Key word(s): 9 Month figures/Quarter Results
Pfeiffer Vacuum Technology AG: Pfeiffer Vacuum benefits from strong semiconductor business and reports improved margins in Q3 2020
03.11.2020 / 07:30
The issuer is solely responsible for the content of this announcement.
PRESS RELEASE
Pfeiffer Vacuum benefits from strong semiconductor business and reports improved margins in Q3 2020
- Sales down 2.9% in 9M 2020 and down 2.7% in Q3 2020
- EBIT margin reaches 7.9% in 9M 2020 and 10.6% in Q3 2020
- Order intake of EUR 461.3 million in 9M 2020, up 2.5% from the previous year
Asslar, Germany, November 3, 2020. Pfeiffer Vacuum Technology AG, a leading global manufacturer of vacuum solutions, today reports consolidated financial results for the third quarter and nine months period ending September 30, 2020.
Pfeiffer Vacuum sales for the first nine months 2020 declined by 2.9% to EUR 453.9 million compared to the previous year (9 months 2019: EUR 467.3 million), primarily driven by lower sales in the market segments coating, analytics, industry and R&D offset by a strong performance in the semiconductor market. Sales in the semiconductor and coating market combined increased by 7.1% to EUR 233.5 million (9 months 2019: 218.0 million) whereas sales in the industry, analytics and R&D market segments decreased by 11.6% to EUR 220.4 million (9 months 2019: 249.3 million).
The gross profit for the first nine months was EUR 158.0 million (9 months 2019: EUR 161.4 million). The year-over-year decline is due to negative economies of scale related to sales declines and productivity impact in the context of COVID-19 measures implemented by Pfeiffer Vacuum, offset in Q3 2020 by favorable sales mix within the markets. In the first nine months 2020, the gross profit margin improved to 34.8% (9M 2019: 34.5%) driven by the strong gross profit margin in Q3 2020 of 36.4% (Q3 2019: 33.6%)
The operating result (EBIT) for the first nine months 2020 of EUR 35.7 million represents a decrease by 27.0% compared to the previous year (9 months 2019: EUR 48.9 million). The EBIT margin reached 7.9% which was lower than in the previous year (9 months 2019: 10.5%) but higher than in the first half of 2020 (H1 2020: 6.5%). This was driven by an improved EBIT margin of 10.6% in Q3 2020, mainly as a result of the favorable product mix.
The year-over-year decline in EBIT in the 9-months periods was primarily a result of the decrease in sales, productivity losses through COVID-19 and increased expenses to drive market share growth and to improve the EBIT margin to 20% by 2025.
Net income declined to EUR 24.8 million (9 months 2019: EUR 34.7 million), representing earnings per share of EUR 2.51 (9 months 2019: EUR 3.52).
The book-to-bill ratio, the ratio of order intake to sales, was at 1.02 for the nine months ending September 30, 2020. Despite of COVID-19, the order intake reached EUR 461.3 million, up 2.5% compared to first nine months of 2019. At the end of the third quarter 2020, Pfeiffer Vacuum had an order backlog of EUR 118.2 million, down 7.4% compared to the previous year (September 30, 2019: EUR 127.6 million).
"Market indicators in the semiconductor market continued to be positive while our other markets were impacted primarily due to the economic slow-down related to the COVID-19 pandemic" says Dr. Eric Taberlet, CEO of Pfeiffer Vacuum Technology AG. "EBIT margins during the third quarter 2020 were the strongest of the year 2020 due to a very favorable sales mix within our different market segments."
Overview of key figures:
9M/2020 9M/2019 Change Sales € 453.9 million € 467.3 million -2.9% EBIT € 35.7 million € 48.9 million -27.0% Net income € 24.8 million € 34.7 million -28.6% Earnings per share € 2.51 € 3.52 -28.4% Order intake € 461.3 million € 450.0 million +2.5%Q3 2020 Q3 2019 Change Sales € 152.0 million € 156.2 million -2.7% EBIT € 16.1 million € 16.1 million +0.5% Net income € 11.3 million € 11.4 million -1.3% Earnings per share € 1.14 € 1.16 -1.7% Order intake € 144.7 million € 156.3 million -7.4%
In sales by region, which describes sales according to the location of the customers in their corresponding region, Pfeiffer Vacuum achieved a year-over-year increase in sales by 1.7% to EUR 170.5 million for the first nine months of 2020 (9 months 2019: EUR 167.6 million) in Asia. This was mainly related to higher sales with our customers in the semiconductor market. Europe sales decreased by 6.4% to EUR 162.7 million (9 months 2019: EUR 173.9 million), mainly because of the market conditions in the industry, analytics and R&D segments. Sales in the Americas declined by 4.1% to EUR 120.7 million (9 months 2019: EUR 125.8 million), primarily due to the weaker US Dollar.
Balance sheet and cash-flow
As of September 30, 2020, Pfeiffer Vacuum maintained its solid financial position. Total assets at the end of the third quarter 2020 were EUR 659.1 million, slightly less than at the end of 2019 (December 31, 2019: EUR 659.6 million). Cash and cash equivalents were EUR 112.2 million (December 31, 2019: EUR 112.0 million) and the Company remains net debt free. The equity ratio was at 60.1%, slightly up from the year-end 2019 (December 31, 2019: 59.6%).
Outlook
Due to the impact of COVID-19 on the global economy and further pressures due to the arrival of the second wave of increased infections, Pfeiffer Vacuum is currently not able to make a reliable forecast concerning the further business development. Critical semiconductor customers currently remain committed to their expansion. However, economic activity in other markets served could come under increased pressure. The Company currently expects sales in the fourth quarter 2020 to be similar to third quarter 2020 levels, while the EBIT margin for the full year 2020 is expected to be around 7 percent.
Contact
Pfeiffer Vacuum Technology AG
Investor Relations
Heide Erickson
T +49 6441 802 1360
Heide.Erickson@pfeiffer-vacuum.de
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, coating and semiconductor markets since its invention of the turbopump. Founded in 1890, Pfeiffer Vacuum is active worldwide. The Company employs approximately 3,300 employees, has over 20 sales and service companies, and operates 10 manufacturing sites worldwide.
For more information, please go to: group.pfeiffer-vacuum.com
September 30, 2020 2019 2020 2019 in K€ in K€ in K€ in K€ Net sales 152,007 156,225 453,861 467,333 Cost of sales -96,672 -103,805 -295,891 -305,909 Gross profit 55,335 52,420 157,970 161,424 Selling and marketing expenses -17,955 -16,965 -54,055 -53,267 General and administrative expenses -12,697 -14,579 -43,456 -40,906 Research and development expenses -7,980 -6,423 -25,499 -21,235 Other operating income 2,486 2,315 7,131 5,800 Other operating expenses -3,051 -709 -6,405 -2,912 Operating profit 16,138 16,059 35,686 48,904 Financial expenses -276 -205 -729 -648 Financial income 29 59 123 121 Earnings before taxes 15,891 15,913 35,080 48,377 Income taxes -4,612 -4,486 -10,270 -13,641 Net income 11,279 11,427 24,810 34,736 Earnings per share (in €): Basic 1.14 1.16 2.51 3.52 Diluted 1.14 1.16 2.51 3.52
Consolidated Balance Sheets (unaudited) September 30, 2020 December 31, 2019 in K€ in K€ Assets Intangible assets 111,927 112,244 Property, plant and equipment 152,944 154,701 Investment properties 386 400 Other financial assets 1,851 4,031 Other assets 616 2,034 Deferred tax assets 27,617 27,377 Total non-current assets 295,341 300,787 Inventories 135,006 128,484 Trade accounts receivable 86,872 87,867 Contract assets 2,285 2,860 Income tax receivables 6,099 9,962 Prepaid expenses 6,319 4,308 Other financial assets 2,925 3,161 Other accounts receivable 12,047 10,166 Cash and cash equivalents 112,217 111,980 Total current assets 363,770 358,788 Total assets 659,111 659,575 Shareholders' equity and liabilities Share capital 25,261 25,261 Additional paid-in capital 96,245 96,245 Retained earnings 317,027 304,552 Other equity components -42,156 -32,613 Equity of Pfeiffer Vacuum Technology AG shareholders 396,377 393,445 Financial liabilities 69,007 69,729 Provisions for pensions 66,558 64,103 Deferred tax liabilities 4,502 5,041 Contract liabilities 804 584 Total non-current liabilities 140,871 139,457 Trade accounts payable 36,422 41,137 Contract liabilities 13,747 12,259 Other accounts payable 22,899 23,406 Provisions 41,739 38,735 Income tax liabilities 3,514 7,248 Financial liabilities 3,542 3,888 Total current liabilities 121,863 126,673 Total shareholders' equity and liabilities 659,111 659,575
Consolidated Statements of Cash Flows (unaudited) Nine months ended
September 30, 2020 2019 in K€ in K€ Cash flow from operating activities: Net income 24,810 34,736 Depreciation/amortization 19,760 17,487 Other non-cash income/expenses 4,066 3,455 Effects of changes of assets and liabilities: Inventories -13,079 -11,038 Receivables and other assets 1,989 6,389 Provisions, including pensions, and income tax liabilities 2,263 -3,566 Payables, other liabilities -2,852 -11,950 Net cash provided by operating activities 36,957 35,513 Cash flow from investing activities: Capital expenditures -19,675 -19,307 Proceeds from disposals of fixed assets -204 293 Net cash used in investing activities -19,879 -19,014 Cash flow from financing activities: Principal elements of lease payments -3,636 -3,448 Proceeds from increase of financial liabilities - 632 Dividend payment -12,335 -22,696 Redemptions of financial liabilities -56 - Net cash provided by/used in financing activities -16,027 -25,512 Effects of foreign exchange rate changes on cash and cash equivalents -814 255 Net change in cash and cash equivalents 237 -8,758 Cash and cash equivalents at beginning of period 111,980 108,380 Cash and cash equivalents at end of period 112,217 99,622
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