Pfeiffer Vacuum reaches latest targets for sales and profitability in 2019 and expects sales improvements in 2020
The company reported sales of EUR 632.9 million, operating results (EBIT) of EUR 65.2 million und EBIT margin of 10.3 percent, meeting the guidance provided in September 2019.
Compared to the previous year, sales decreased by 4.1 percent (previous year: EUR 659.7 million), primarily driven by challenging market conditions in the coating market and a weaker demand in the semiconductor market. This was partly offset by a strong performance in the industry market and the growth in the R&D and analytics markets. The operating result (EBIT) decreased by 31.5 percent (previous year: EUR 95.1 million) and the EBIT margin decreased by 4.1 percentage points compared to the previous year (previous year: 14.4). The decrease in sales put pressure on operating results. In addition, increased expenses to drive market share growth and to improve the EBIT margin to over 20 by 2025 had a negative effect on the operating performance.
The book-to-bill ratio, the ratio of order intake to sales, was 0.95 for the full year. At the end of the fourth quarter, Pfeiffer Vacuum had an order backlog of EUR 110.7 million, a decrease of 23.6 percent compared to the previous year (EUR 144.9 million).
“In 2019 we continued to execute our ambitious growth strategy,” says Dr. Eric Taberlet, CEO of Pfeiffer Vacuum Technology AG. “I am very pleased with the progress we made as we implemented a leadership and experts structure to drive worldwide results, strengthened our presence in China, and made first progress in driving operations excellence. Sales are expected to grow in 2020, but we are carefully monitoring developments related to the coronavirus and the Chinese market, a critical growth market for Pfeiffer
Nathalie Benedikt, CFO comments “Just as in 2019, we will continue the execution of our growth strategy, which is expected to be especially intense in 2020. Therefore, despite the anticipated sales growth, we don’t expect a significant improvement in EBIT margin in 2020. Capital investments in 2020 are expected to be above 2019 levels.”
In connection with year-end requests for information, Pfeiffer Vacuum received communication from Busch SE declaring a direct or indirect ownership of 60.22 percent of Pfeiffer Vacuum share capital as of December 31, 2019.
The audited annual results are scheduled to be published on March 26, 2020.
Source: Pfeiffer Vacuum GmbH