Pfeiffer Vacuum reports financial results for the third quarter and nine months ending September 30, 2019.
For the third quarter 2019, sales reached 156.2 million, up 2.0 percent compared to the same period in 2018, and EBIT was 16.1 million, down 22.6. Year-to-date 2019, sales were 467.3 million, down 4.9 compared to the same period in 2018. In the first nine months 2019, sales were impacted primarily by declines in the semiconductor and coating market. Third quarter 2019 was the first quarter in 2019 where sales in the semiconductor market improved year-over-year. The company is in an investment phase, which in addition to sales performance impacts the EBIT margin.
Source: Pfeiffer Vacuum
Market indicators in the semiconductor and coating market are stabilizing, and we expect demand will accelerate in 2020, says Dr. Eric Taberlet, CEO of Pfeiffer Vacuum Technology AG. We are executing an ambitious investment plan to drive increased market share and earnings improvements and I am pleased with the progress we are making.
Nathalie Benedikt, CFO of Pfeiffer Vacuum Technology AG, comments: We are in a very important investment phase. Over a multi-year period we are investing 150 million to drive growth and profitability. We expect to realize the full benefits of this investment program by 2025.
Third quarter 2019 orders were 156.3 million, the highest level for 2019, compared to 148.8 million in the first quarter and 144.9 million in the second quarter 2019.
Sales by Market, Product Group and Geographic Regions
For the nine months ending September 30, 2019, sales decreased by 4.9 percent to 467.3 million. The year-over-year decline was related to weakness in sales from the semiconductor market, which decreased year-over-year by 15.9 percent to 156.5 million as well as declines in the coating market of 20.1 percent to 61.5 million. This was partially offset by strong demand in the industry market segment, which increased 13.9 percent to 110.0 million, research & development (R&D) business, which grew 10.6 percent to 48.8 million, and analytics, up 3.5 percent to 90.5 million.
In terms of product groups, turbopumps recorded the largest sales, with the most significant year-over-year sales increases of 2.9 percent to 145.2 million year-to-date. Year-over-year sales also improved for service, by 1.2 percent to 84.3 million, and systems by 2.1 percent to 11.6 million. This was offset by year-over-year sales declines for instruments and components of 9.1 percent to 132.2 million and backing pumps by 14.7 percent to 93.9 million, primarily related to the semiconductor and coating market conditions.
While sales in all geographic regions declined year-over-year for the first 9 months, the primary decline was in Asia, with 9.4 percent to 167.6 million. Third quarter 2019 sales grew year-over-year in all geographic regions.
EBIT for the nine months ending September 30, 2019 was 48.9 million or 10.5 percent of sales, compared to 68.5 million and 13.9 percent for the same period in 2018. The year-over-year decline was due to lower sales and expanded costs related to strategic investments to achieve higher market share and EBIT margin of above 20 percent. Foreign currency effects had a slightly positive impact on results.
For fiscal year 2019, Pfeiffer Vacuum expects sales of 620 to 640 million, and an EBIT margin of around 10 percent. In addition, capital expenditures are expected to be about 30 million.