Record Performance at Pfeiffer Vacuum
Pfeiffer Vacuum, one announces its results for the 1st half of 2006. All sales and profitability numbers advanced sharply year on year. Pfeiffer Vacuum has been traded on the New York Stock Exchange for the past 10 years.
Sales growth eased somewhat in the 2nd quarter following an extremely strong 1st quarter. Year to date, sales are up 10.5 percent over the same period the year before. This means that Pfeiffer Vacuum has once again grown faster than the market.
Regionally, growth in the 2nd quarter of 2006 came primarily from the United States (up 16 percent) and from Asia and the rest of the world (up 19 percent over the same quarter the year before). Sales in Germany declined by around 10 percent while stagnating in the other countries of Europe.
Once again, sales were driven mainly by pumps and components for the analytical industry in the United States and Japan, with sales to manufacturers of analytical equipment rising by 25 percent from € 17.8 million in the 1st half of 2005 to € 22.3 million during the period under review. Already at a high level, sales in the heterogeneous “Industrial Applications” market segment again rose moderately, from € 18.6 to € 19.7 million, with both Roots pumps for metallurgical applications as well as pumping stations for customers in Eastern Europe contributing to this growth.
Sales in the “Research & Development” market segment advanced sharply by 21 percent from € 14.7 to € 17.8 million, with orders coming from major research institutes in Germany, France and Switzerland, for example. In the market segment of “Coating”, sales declined from € 14.0 to € 12.8 million. However various orders are still to be shipped during the second half of the year here, especially to customers in the fields of solar technology and architectural glass coating. The Semiconductor segment grew by 11 percent from € 9.3 to € 10.3 million.
During the 1st half of 2006, sales of high-margin turbopumps advanced by 21 percent, from € 31.5 to € 38.2 million. A favorable product mix, coupled with further manufacturing cost management efforts, produced an 18-percent rise in gross profit as well as an outstanding gross margin of 49.7 percent. EBIT margin reached a new record high of 24.2 percent (H1 / 2005: 21.9 percent).
During the 2nd quarter of 2006, new orders slowed somewhat from their record-setting level in Q1. Chief Executive Officer Wolfgang Dondorf: “It is still not yet possible to see whether this trend is an indication of a general economic slowdown. We are therefore reiterating our conservative forecast for sales growth of from 6 to 8 percent. We will do everything in our power to keep our outstanding margins high.
However higher energy and raw materials costs are largely beyond our control. We are therefore anticipating an EBIT margin of at least 23 percent for the full fiscal year. “We have distributed nearly € 12 million, i.e. around one-half of our 2005 earnings, to our shareholders in the form of a dividend. During the second quarter, we began buying back treasury stock. At the close of the 2nd quarter of 2006, our liquid assets continue to total more than € 60 million. Consequently, we are looking for opportunities to broaden our product portfolio in the field of vacuum pumps and components.”
This year marks the tenth anniversary of the company’s initial public offering on the New York Stock Exchange. On July 16, 1996, the issue price of its shares was € 6.25. Over the course of the past ten years, their trading price has risen roughly eight-fold.
Source: Pfeiffer Vacuum GmbH