Pfeiffer Vacuum, a leading global manufacturer of vacuum solutions, managed to increase sales by 22.4% to EUR 338.2 million compared to the previous year, a continuation of its encouraging start to the first half of the year.
Of its total sales, EUR 33.4 million was generated by the companies acquired in 2017, which allowed for growth of 12.9% from stock units to be recorded. EBIT rose to EUR 47.8 million or by 36.2%. The EBITmargin was 14.1%. Adjusted for PPA-effects, EBIT reached EUR 51.7 million at an adjusted EBIT-margin of 15.3%. The order intake in the second quarter, which was again positive at EUR 174.0 million, indicates the expected delays in orders from semiconductor customers. Accordingly subdued development has been confirmed for the second half of the year. The book-to-bill ratio as of June 30, 2018 amounted to 1.09.
Source: Pfeiffer Vacuum
Nathalie Benedikt, CFO comments: “Pfeiffer Vacuum was able to increase sales and earnings in the second quarter. We are in line with the three-year investment program. In the first half of the year, investments amounting to approximately EUR 20 million were commissioned in machines, buildings and IT infrastructure. In the second quarter EUR 8.9 million has been capitalized.”
Additional sales were gained across all business units in the first half of the year. Business in the coatings market developed exceptionally well with an increase of 62.1% to a volume of EUR 53.8 million. Announcements of cuts in public funds for solar energy feed in tariffs by the Chinese government do not have an impact on our business according to current estimates. In the semiconductor customer market, sales increased by 26.9% to a record volume of EUR 136.1 million. Analytics business increased by 21.1% to EUR 57.7 million compared to the same period in the previous year. Sales increased by 6.7% to EUR 29.5 million with research and development customers. At EUR 61.2 million, sales were stable in the heterogeneous business with industrial customers compared to the previous year.
According to product groups, turbopumps and backing pumps, with sales of EUR 94.4 million and EUR 80.6 million, achieved the highest organically generated growth compared to the previous year of 13.3% and 18.9%, respectively. Business in instruments and components recorded a significant volume in the first half of the year of EUR 100.1 million, rising by 52.6%. This figure includes acquisition-related growth of EUR 30.6 million. Systems showed an extremely pleasing performance with an increase of 57.0% compared to the previous year to a volume of EUR 8.5 million. Service achieved slightly improved sales compared to the previous year of EUR 54.7 million.
From a regional perspective, Asia continues to be the most important sales market for vacuum solutions, with a sales volume of EUR 133.1 million. This is followed by Europe with sales of EUR 120.0 million in the first half of the year and North and South America with EUR 85.1 million. In relative terms, especially taking into account the acquisition-related share of sales of EUR 26.4 million, North and South America showed the largest increase by far of 36.4% compared to the previous year. In a quarter on quarter analysis gross margin was reduced by 4.3 percentage points to 33.5% in the second quarter, due to the product and customer mix and a lower amount of production days because of federal holidays and vacation days.
For Dr. Eric Taberlet, CEO of Pfeiffer Vacuum Technology AG, the figures confirm the expected developments. “The latest market data from the semiconductor industry and the delays in the capacity extensions of our customers relativize the record levels from the beginning of the year. Nevertheless, we are convinced that we will achieve our goals for the year as a whole. The increased momentum in implementing our strategy will allow us to expand our locations in Romania, North America and Vietnam in the second half of the year.”