Pfeiffer Vacuum posts moderate development during the first nine months of 2009
Broad-based alignment mitigates impact of economic crisis
Core business sales stabilizing from quarter to quarter
Full-year guidance reiterated
Asslar, Germany, November 3, 2009. During the first nine months of 2009, Pfeiffer Vacuum recorded significantly lower declines in sales revenues and profitability than its industrial environment. The company is now benefiting from the broad-based alignment of its vacuum solutions business and from its ability to offer leading technologies in numerous fields.
Germany continues to be the region that accounts for the largest share of total sales revenues. During the first nine months of 2009, Pfeiffer Vacuum was able to increase sales by 11.1 percent to 54.6 million on its home market, a metric that continues to be driven by a major contract from the solar industry. At 36.7 million, sales revenues in the other countries of Europe lagged behind the year before by 16.1 percent. Totaling 27.4 million, the company saw sales revenues in the United States develop on a relatively stable note (+0.4 percent). At 18.8 million, sales revenues in Asia and the rest of the world were down by 13.8 percent from the year before.
In terms of the sales mix by markets, the Coating segment remained the clear leader during the first nine months of 2009, with sales revenues rising by 28.5 percent to 40.1 million. Sales in the Analytical market segment declined by 12.5 percent to 32.7 million. The heterogeneous market segment of Industrial Applications recorded a 17.2-percent decline to 27.0 million. Public-sector investments stemming from the implementation of various international economic stimulus programs generated sales growth of 9.9 percent in the Research & Development sector to 24.7 million. The Semiconductor segment recorded a 36.0-percent decline in sales to 7.6 million for the first nine months, as opposed to a decline of 16.8 percent in the Chemical and Process Technology segment, where sales revenues stood at 5.4 million.
The year-on-year comparison in new orders was essentially characterized by the receipt of a major contract in the third quarter of 2008, which should be viewed as a non-recurring effect. Consequently, the company s new orders declined by 35.8 percent during the first nine months of 2009 to 117.3 million. At 40.8 million as at September 30, 2009, the level of new orders was down by 45.2 percent year on year. The special effect from the previous year can be seen here, as well.
Although cost control continues to enjoy high priority at Pfeiffer Vacuum, gross margin declined by 3.8 percentage points to 42.8 percent for the first nine months of 2009. The reasons for this were economies of scale, additional costs in conjunction with the renovation and reorganization of the production halls for turbopumps, as well as the product mix. In addition to exchange rate influences, these effects also drove down the EBIT margin by 5.7 percentage points to 20.2 percent.
Nevertheless, with these margins Pfeiffer Vacuum continues to rank as a leader in the industrial environment.
As at September 30, 2009, the company s cash and cash equivalents at 53.9 million remained on prior year s level, shareholders equity were at 130.3 million. Totaling 85.8 percent, the equity ratio of debt-free Pfeiffer Vacuum at the close of the third quarter of 2009 continued to remain far above average levels.
We are naturally not pleased about the decline in sales revenues, especially in the third quarter. However this development is very moderate by comparison with our industrial environment. In this connection, the fact should be taken into consideration that the prior year had been characterized by extremely good business conditions. Aside from the special effect produced by a major contract in the Coating segment, we see our core business stabilizing from quarter to quarter. This gives us the confidence of being able to achieve our goals for the full year of 2009: A maximum decline in sales revenues of between 10 and 15 percent and an EBIT margin in excess of 20 percent, is the way Chief Executive Officer Manfred Bender comments on the course of business. Should this stabilization continue, we will have picked the optimum timing for renovating and expanding our manufacturing operations. We will then be able to benefit from the reserves that we had formed in preceding years, which are now available to us for investments.
Download Document
