Profit Nearly Doubles During First 9 Months
Pfeiffer Vacuum, a leading manufacturer of high quality vacuum pumps, vacuum gauges, mass spectrometers and complete vacuum systems, announces its results for the first 9 months of 2004.
Sales for the first nine months of 2004 were up 14.9 percent year on year. Orders on hand and new orders from the first weeks of the 4th quarter lend support to the company’s objective of double-digit sales growth over the previous year (€ 144 million).
The company is also confirming its goal of disproportionate growth in its operating profit margin to at least 16 percent of sales revenues. In Germany, sales for the first nine months advanced by 22.5 percent € 29.1 million to €35.6 million, with deliveries to export-oriented machine manufacturers playing a major role in this connection. A further key customer from the DVD industry was won during the 3rd quarter; this customer has qualified turbopumps from Pfeiffer Vacuum for its new systems. Initial orders have already been shipped, and a framework agreement has been signed for further deliveries.
In the other countries of Europe, sales for the first nine months rose by 7.0 percent from €33.6 million to €36.0 million. In the United States, sales in U.S. dollars were up by an encouraging 23.3 percent from US$ 25.7 million to US$ 31.6 million. Consolidated in euros, however, this represented sales growth of only 11.2 percent due to the significantly weaker dollar by comparison with the year before. The company’s policy of pushing sales in industrial applications for vacuum technology in the U.S., instead of merely counting on the highly volatile semiconductor industry, is now paying off. Sales in Asia and the rest of the world also developed on a very good note: Up 22.6 percent from € 16.5 million to € 20.2 million.
Due to the insolvency of a customer for DVD systems, it was necessary to adjust new orders and orders on hand for the 3rd quarter of 2004 downward by some €4 million.
The company’s DVD business is being reorganized. In an initial step, the legal domicile of Pfeiffer Vacuum Systems GmbH has been relocated to corporate headquarters in Asslar in order to be able to utilize synergies. An accrued liability for reorganization expenses had already been formed in the financial statements for the 3rd quarter of 2004.
Chief Executive Officer Wolfgang Dondorf on the outlook: “In addition to addressing the market even more intensively, we will be instituting further measures aimed at lowering our manufacturing and administrative costs. The extremely successfully optimized manufacturing concept for turbopumps will now be implemented step by step for backing pumps, as well.
Our development activities will continue to be sustained at a high level. Even in these uncertain times, it continues to be our objective to win new customers through the outstanding quality of our products and service, rather than on the basis of price. Focusing on our core business will continue to have a positive impact on the company’s already outstanding profitability.”
Source: Pfeiffer Vacuum GmbH