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
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, 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