DGAP-News: Pfeiffer Vacuum Technology AG: Pfeiffer Vacuum reports strong first quarter 2020 order intake and stable sales in COVID-19 environment
DGAP-News: Pfeiffer Vacuum Technology AG
/ Key word(s): Quarter Results/Quarterly / Interim Statement
Pfeiffer Vacuum Technology AG: Pfeiffer Vacuum reports strong first quarter 2020 order intake and stable sales in COVID-19 environment
05.05.2020 / 07:30
The issuer is solely responsible for the content of this announcement.
PRESS RELEASE
Pfeiffer Vacuum reports strong first quarter 2020 order intake and stable sales in COVID-19 environment
- Sales of EUR 153.3 million flat with the previous year
- Operating result (EBIT) of EUR 12.8 million and 8.4% EBIT margin
- Order intake of EUR 172.9 million, 16.2% above previous year
Asslar, May 5, 2020. Pfeiffer Vacuum Technology AG, a leading global manufacturer of vacuum solutions, today announced results for the first quarter 2020. The company reported sales of EUR 153.3 million, an operating result (EBIT) of EUR 12.8 million and an EBIT margin of 8.4%. The order intake increased significantly to EUR 172.9 million.
Pfeiffer Vacuum sales for the first quarter 2020 were about flat with the previous year (Q1 2019: EUR 153.7 million), primarily driven by a strong performance in the semiconductor market and also a growth in the R&D market segment. This was offset by sales declines in the coating, industry and analytics markets. Sales in the semiconductor and coating market increased by 4.7% to EUR 78.6 million (Q1 2019: 75.1 million) and sales in the industry, analytics and R&D market segments decreased by 5.0% to EUR 74.7 million (Q1 2019: 78.6 million).
The operating result (EBIT) decreased by 29.4% (Q1 2019: EUR 18.1 million) and the EBIT margin was 8.4% (Q1 2019: 11.8%). The year-over-year decline in EBIT was primary a result of productivity loss through COVID-19 and due to changes in the product and market mix. In addition, increased expenses to drive market share growth and to improve the EBIT margin to 20% by 2025 as outlined in the Company's growth strategy had a negative effect on the operating performance.
The book-to-bill ratio, the ratio of order intake to sales, was very strong at 1.13 for the first quarter. At the end of the first quarter, Pfeiffer Vacuum had an order backlog of EUR 130.3 million, representing a decrease of 6.9% compared to the previous year (March 31, 2019: EUR 140.0 million) and an increase of 17.7% compared to year-end 2019 (December 31, 2019: EUR 110.7 million).
"Our top priorities in the COVID-19 environment remain the health and safety of our employees and communities and to meet our customers' needs," says Dr. Eric Taberlet, CEO of Pfeiffer Vacuum Technology AG. "The high-vacuum industry is robust, and we are supplying growth markets. We must remain vigilant and agile to navigate through this challenging, quickly evolving environment that is impacting already some of the markets we serve. I am proud that so far there has been no major disruption in meeting our customers' deliveries."
Nathalie Benedikt, CFO comments: "Pfeiffer Vacuum is affected by COVID-19, but less so than many other industries, and is in a strong financial position. In the current environment we are acting with caution and remain agile to make adjustments where needed. We are firmly on the path to execute our strategy to gain market share and improve the EBIT margin."
Overview of key figures:
The gross profit in the reporting period was EUR 53.3 million (Q1 2019: EUR 55.7 million). The year-over-year decline is due to negative economies of scale related to product and market mix and productivity impact related to COVID-19 measures.
Net income declined to EUR 8.9 million (Q1 2019: EUR 12.9 million) representing earnings per share of EUR 0.90 (Q1 2019: EUR 1.31).
In sales by region, which describes sales according to the location of the customers in their corresponding region, the Americas contributed to an increase in sales of 10.5% to EUR 44.4 million (Q1 2019: EUR 40.2 million) driven by sales to semiconductor customers. Europe showed a decrease of 1.1% to EUR 58.0 million (Q1 2019: EUR 58.6 million). Sales in Asia declined by 7.2% to EUR 50.9 million (Q1 2019: EUR 54.9 million) related to market conditions in the coating market.
Balance sheet and cash-flow
Total assets at the end of first quarter 2020 were EUR 667.0 million up slightly from year-end 2019 (December 31, 2019: EUR 660.0 million). Cash and cash equivalent were EUR 104.7 million and the company is net debt free from a financial liability perspective. The equity ratio was at 60.3%, slightly up from the year-end 2019 (December 31, 2019: 59.6%).
Outlook
Pfeiffer Vacuum is not able to make a reliable forecast due to the impact of COVID-19 on the world economy and thus on some of our markets. Critical semiconductor customers currently remain committed to their expansion and orders in the analytics market supporting the fight against COVID-19 are strong. Economic activity in other markets served declined. The company expects market conditions and world economic activity to put pressure on the financial performance.
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
Consolidated Statements of Income (unaudited) Three months ended March 31, 2020 2019 in K€ in K€ Net sales 153,328 153,733 Cost of sales -100,056 -98,064 Gross profit 53,272 55,669 Selling and marketing expenses -18,033 -18,047 General and administrative expenses -15,318 -13,200 Research and development expenses -7,699 -7,511 Other operating income 2,721 2,178 Other operating expenses -2,126 -946 Operating profit 12,817 18,143 Financial expenses -231 -222 Financial income 39 36 Earnings before taxes 12,625 17,957 Income taxes -3,770 -5,064 Net income 8,855 12,893 Earnings per share (in €): Basic 0.90 1.31 Diluted 0.90 1.31
Consolidated Balance Sheets (unaudited) March 31, 2020 December 31, 2019 in K€ in K€ Assets Intangible assets 113,474 112,244 Property, plant and equipment 155,577 154,701 Investment properties 394 400 Other financial assets 3,978 4,031 Other assets 1,080 2,034 Deferred tax assets 27,539 27,377 Total non-current assets 302,042 300,787 Inventories 134,658 128,484 Trade accounts receivable 91,661 87,867 Contract assets 2,866 2,860 Income tax receivables 9,662 9,962 Prepaid expenses 6,595 4,308 Other financial assets 2,831 3,161 Other accounts receivable 12,065 10,166 Cash and cash equivalents 104,652 111,980 Total current assets 364,990 358,788 Total assets 667,032 659,575 Shareholders' equity and liabilities Share capital 25,261 25,261 Additional paid-in capital 96,245 96,245 Retained earnings 313,407 304,552 Other equity components -32,430 -32,613 Equity of Pfeiffer Vacuum Technology AG shareholders 402,483 393,445 Financial liabilities 69,275 69,729 Provisions for pensions 65,005 64,103 Deferred tax liabilities 4,663 5,041 Contract liabilities 666 584 Total non-current liabilities 139,609 139,457 Trade accounts payable 41,183 41,137 Contract liabilities 11,303 12,259 Other accounts payable 24,993 23,406 Provisions 37,959 38,735 Income tax liabilities 5,947 7,248 Financial liabilities 3,555 3,888 Total current liabilities 124,940 126,673 Total shareholders' equity and liabilities 667,032 659,575
Consolidated Statements of Cash Flows (unaudited) Three months ended March 31, 2020 2019 in K€ in K€ Cash flow from operating activities: Net income 8,855 12,893 Depreciation/amortization 6,801 5,650 Other non-cash income/expenses 868 1,146 Effects of changes of assets and liabilities: Inventories -7,221 -15,959 Receivables and other assets -6.841 9,654 Provisions, including pensions, and income tax liabilities -1,063 -3,371 Payables, other liabilities 886 -1,868 Net cash provided by operating activities 2,285 8,145 Cash flow from investing activities: Capital expenditures -7,585 -5,608 Proceeds from disposals of fixed assets 109 35 Net cash used in investing activities -7,476 -5,573 Cash flow from financing activities: Principal elements of lease payments -1,298 -1,033 Proceeds from increase of financial liabilities - 163 Redemptions of financial liabilities -120 - Net cash used in financing activities -1,418 -870 Effects of foreign exchange rate changes on cash and cash equivalents -719 142 Net change in cash and cash equivalents -7,328 1,844 Cash and cash equivalents at beginning of period 111,980 108,380 Cash and cash equivalents at end of period 104,652 110,224
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