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11.04.2024 06:30:48 - dpa-AFX: EQS-Adhoc: VAT Media Release on Q1 2024 Trading Update (english)
VAT Media Release on Q1 2024 Trading Update
VAT Group AG / Key word(s): Interim Report/Quarterly / Interim Statement
VAT Media Release on Q1 2024 Trading Update
11-Apr-2024 / 06:30 CET/CEST
Release of an ad hoc announcement pursuant to Art. 53 LR
The issuer is solely responsible for the content of this announcement.
---------------------------------------------------------------------------
* Sales of CHF 199 million at upper end of guidance for Q1 2024
Q1 2024 results
Outlook for full-year 2024
* Improving market conditions expected to persist throughout 2024
Guidance for Q2 2024
* VAT expects sales of CHF 235 to 255 million
VAT Group
1 Quarter-on-Quarter 2 Year-on-Year
Q1 2024 summary
As previously indicated, demand for VAT products continued to show good
momentum in Q1 2024. Adjusted for seasonal year-end impacts, order intake
sequentially improved over the past quarters, indicating a continued
recovery in demand for wafer fab equipment. Order flow from customers in
Asia, especially China, remained strong, fueled by subsidies intended to
accelerate the Chinese regionalization efforts. Following a period of
de-stocking, inventory levels are normalizing at our customers, which in
turn is creating growing demand again for valves.
In the Valves segment, orders in the Semiconductors business unit in Q1 2024
were up 7% compared with Q4 2023. As communicated, Q4 2023 orders were
increased by some project wins in the display business and year-end
seasonality. Despite the strong order intake in Q4 2023, sales came out
lower quarter-on-quarter as not all orders received are executed in the
following quarter, which was indicated in the sales guidance provided.
Compared to Q1 2023, sales decreased 9% to CHF 127 million and were 4% below
Q4 2023 sales.
In the Advanced Industrials business unit, orders slowed vs. Q4,
demonstrating the project nature of the business. Orders were down 29% and
sales were down 29% vs. Q4 2023. Demand from energy transition names remains
promising, in particular from nuclear fission customers. Orders from solar
and industrial coating customers remain constrained due to market downcycle
and customer overcapacity. At the same time, scientific and research
customers saw order growth.
VAT's Global Service segment has seen a gradual increase in demand for
spares and consumables as capacity utilization is increasing in
semiconductor fabs, especially for memory chips. With the build-out of new
fabs commencing again, we see promising demand for upgrades and retrofits
with key customers in addition to servicing the high installed base.
Overall, Q1 2024 Group orders amounted to CHF 236 million, up 73%
year-on-year and 0.3% lower than in Q4 2023. Net sales were CHF 199 million,
a 15% decrease compared with the same quarter in 2023, and at the upper end
of the guidance of CHF 185 to 205 million communicated at the beginning of
March 2024. Foreign exchange movements, especially the US dollar against the
Swiss franc, had a negative year-on-year impact of about 6% on the change in
reported Q1 sales.
The first quarter book-to-bill ratio was 1.2x and the order backlog on March
31 amounted to CHF 324 million, 22% lower than at the end of the same period
in 2023.
Segment Review
Valves
1 Quarter-on-Quarter 2 Year-on-Year
Valves reported Q1 orders of CHF 191 million, down 2.6% sequentially.
Year-on-year order intake was up 86% from the trough order level seen in Q1
of 2023. Net sales in the quarter decreased to CHF 162 million, down 10%
sequentially and 11% on a year-on-year comparison.
The year-on-year Q1 order development was mainly driven by the
Semiconductors business unit, where orders increased 162% year-on-year to
CHF 154 million off a particularly weak Q1 2023. Net sales amounted to
CHF127 million, down 4% compared with Q4 2023.
Orders in the Advanced Industrials business unit declined in Q1 year-on-year
by 16% to CHF 37 million and by 29% compared to Q4 2023. Sales decreased
similarly in Q1 year-on-year by 20% to CHF 35 million.
Global Service
1 Quarter-on-Quarter 2 Year-on-Year
The Global Service segment reported Q1 orders of CHF 45 million, 11% higher
than in Q4 2023 and 33% higher year-on-year. Sales reached CHF 36 million,
down 27% compared to the same period last year.
Outlook: Improving market conditions through 2024 expected to lead to better
annual results
VAT expects investments in semiconductor manufacturing equipment to
gradually improve over the course of 2024 as investments - especially in the
memory sector - are expected to recover from the lower levels seen in 2023.
This development is expected to benefit the semiconductor exposure in the
Valves business and the Global Service business at VAT. Being the undisputed
technology and market leader, VAT is confident to benefit from the
anticipated recovery, especially as a large part of the spend will be geared
towards the leading-edge technologies in both the logic and the memory area.
In addition, VAT expects further growth in adjacent products such as
advanced modules or motion components. Also, the display business is
anticipated to gain traction as renewed investments are executed for the
production of advanced OLED products. Increasing factory capacity
utilizations in the existing fabs will on the other hand increase the
requirement for spare parts and consumables for our service business.
Together with the growing installed base of serviceable VAT products, Global
Service is estimated to grow again in 2024. The continued expansion of
vacuum-based manufacturing into industries such as industrial coatings and
e-beam applications is expected to benefit the Advanced Industrials
business, while solar photovoltaic demand is expected to grow as the
transition to renewable energies continues in most parts of the world.
On this basis, VAT continues to expect full-year sales and EBITDA in 2024 to
be higher compared to 2023. The EBITDA margin is also expected to increase,
however the expected continuing strength of the Swiss franc against VAT's
trading currencies will continue to present headwinds to the company's
margin recovery.
In 2024, VAT will complete construction of the new production facility in
Malaysia, thereby ramping-up production, and engineering services in Penang.
At the same time, significant investments in R&D will also continue,
including in the new Innovation Center in Switzerland.
Net income and free cash flow are also expected to be higher; capex is
forecast at CHF 70 to 80 million.
Despite the positive outlook, short-term market factors such as slower
progress on reducing inflation, concerns about the overall strength of the
global economy, or ongoing geopolitical tensions represent uncertainty
factors influencing the timing and magnitude of the expected recovery. This
uncertainty is also displayed in the rather wide range of WFE growth
expectations by the semiconductor market research firms. On average, these
firms look at WFE spend in 2024 between USD 90 to 100 billion with
accelerated double-digit growth in 2025.
Guidance for Q2 2024
VAT expects sales of CHF 235 to 255 million.
Additional information
VAT will host a short media and investor conference call today, April 11,
2024, at 10:00 a.m. CEST.
Participants of the conference call will also be able to join the moderated
Q&A session. Please follow the link below to access the conference call
pre-registration:
LINK TO CONFERENCE CALL PRE-REGISTRATION
Participants unable to pre-register may dial in by calling:
+41 58 810 70 00 (Switzerland / Rest of World)
+44 207 098 0702 (UK)
+1 631 570 5612 (USA)
A replay of the conference call will be available on the VAT website
approximately 2 hours after the event.
1. mailto:investors@vat.ch
Financial calendar 2024
ABOUT VAT
We change the world with vacuum solutions - that is our purpose as the
world's leading supplier of high-end vacuum valves. The Group reports in two
segments: Valves and Global Service. The Valves segment is a global
developer, manufacturer and supplier of vacuum valves for the semiconductor,
displays, photovoltaics and vacuum coating industries as well as for the
industrial and research sector. Global Service provides local expert support
to customers and offers genuine spare parts, repairs and upgrades. VAT
reported net sales of CHF 885 million in 2023 and employs some 2,700 people
worldwide, with representatives in 29 countries and manufacturing sites in
Switzerland, Malaysia, and Romania.
FORWARD-LOOKING STATEMENT
Forward-looking statements contained herein are qualified in their entirety
as there are certain factors that could cause results to differ materially
from those anticipated. Any statements contained herein that are not
statements of historical fact (including statements containing the words
"believes," "plans," "anticipates," "expects," "estimates" and similar
expressions) should be considered to be forward-looking statements.
Forward-looking statements involve inherent known and unknown risks,
uncertainties and contingencies because they relate to events and depend on
circumstances that may or may not occur in the future and may cause the
actual results, performance or achievements of the company to be materially
different from those expressed or implied by such forward-looking
statements. Many of these risks and uncertainties relate to factors that are
beyond the company's ability to control or estimate precisely, such as
future market conditions, currency fluctuations, the behavior of other
market participants, the performance, security and reliability of the
company's information technology systems, political, economic and regulatory
changes in the countries in which the company operates or in economic or
technological trends or conditions. As a result, investors are cautioned not
to place undue reliance on such forward-looking statements.
Except as otherwise required by law, VAT disclaims any intention or
obligation to update any forward-looking statements as a result of
developments occurring after the date of this report.
News Source: VAT Group AG
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End of Inside Information
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End of Announcement EQS News Service
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1878043 11-Apr-2024 CET/CEST
VAT Group AG / Key word(s): Interim Report/Quarterly / Interim Statement
VAT Media Release on Q1 2024 Trading Update
11-Apr-2024 / 06:30 CET/CEST
Release of an ad hoc announcement pursuant to Art. 53 LR
The issuer is solely responsible for the content of this announcement.
---------------------------------------------------------------------------
* Q1 2024 orders of CHF 236 million up 73% versus Q1 2023 driven by
improving global semiconductor investments and continued strong demand
from Chinese customers
* Sales of CHF 199 million at upper end of guidance for Q1 2024
* Expected market development for 2024 and into 2025 confirmed; business
activity to gain pace throughout 2024
Q1 2024 results
* Orders up 73% year-on-year to CHF 236 million as investment activity in
semiconductor demand recovers; orders flat vs. Q4 2023
* Group net sales of CHF 199 million down 15% versus Q1 2023 and down 11%
versus Q4 2023
* Book-to-bill ratio of 1.2x; backlog at CHF 324 million, up 11% vs.
year-end 2023 backlog
Outlook for full-year 2024
* Improving market conditions expected to persist throughout 2024
* VAT continues to expect better sales, EBITDA, EBITDA margin, net income,
and free cash flow in 2024
* Semiconductor business to benefit from higher investments and more
balanced inventory levels in semiconductor manufacturing equipment. This
is visible especially in the memory sector, but also due to leading edge
technology inflection and strong investments in China. Advanced
Industrials business forecasts further growth; Global Service business
anticipated to benefit from increasing capacity utilizations at semi
fabs
Guidance for Q2 2024
* VAT expects sales of CHF 235 to 255 million
VAT Group
in CHF million Q1 2024 Q4 2023 Chg.1 Q1 2023 Chg.2
Order intake 235.8 236.5 -0.3% 136.4 +72.8%
Net sales 198.5 221.8 -10.5% 232.7 -14.7%
Order Backlog 323.9 291.6 11.1% 416.4 -22.2%
1 Quarter-on-Quarter 2 Year-on-Year
Q1 2024 summary
As previously indicated, demand for VAT products continued to show good
momentum in Q1 2024. Adjusted for seasonal year-end impacts, order intake
sequentially improved over the past quarters, indicating a continued
recovery in demand for wafer fab equipment. Order flow from customers in
Asia, especially China, remained strong, fueled by subsidies intended to
accelerate the Chinese regionalization efforts. Following a period of
de-stocking, inventory levels are normalizing at our customers, which in
turn is creating growing demand again for valves.
In the Valves segment, orders in the Semiconductors business unit in Q1 2024
were up 7% compared with Q4 2023. As communicated, Q4 2023 orders were
increased by some project wins in the display business and year-end
seasonality. Despite the strong order intake in Q4 2023, sales came out
lower quarter-on-quarter as not all orders received are executed in the
following quarter, which was indicated in the sales guidance provided.
Compared to Q1 2023, sales decreased 9% to CHF 127 million and were 4% below
Q4 2023 sales.
In the Advanced Industrials business unit, orders slowed vs. Q4,
demonstrating the project nature of the business. Orders were down 29% and
sales were down 29% vs. Q4 2023. Demand from energy transition names remains
promising, in particular from nuclear fission customers. Orders from solar
and industrial coating customers remain constrained due to market downcycle
and customer overcapacity. At the same time, scientific and research
customers saw order growth.
VAT's Global Service segment has seen a gradual increase in demand for
spares and consumables as capacity utilization is increasing in
semiconductor fabs, especially for memory chips. With the build-out of new
fabs commencing again, we see promising demand for upgrades and retrofits
with key customers in addition to servicing the high installed base.
Overall, Q1 2024 Group orders amounted to CHF 236 million, up 73%
year-on-year and 0.3% lower than in Q4 2023. Net sales were CHF 199 million,
a 15% decrease compared with the same quarter in 2023, and at the upper end
of the guidance of CHF 185 to 205 million communicated at the beginning of
March 2024. Foreign exchange movements, especially the US dollar against the
Swiss franc, had a negative year-on-year impact of about 6% on the change in
reported Q1 sales.
The first quarter book-to-bill ratio was 1.2x and the order backlog on March
31 amounted to CHF 324 million, 22% lower than at the end of the same period
in 2023.
Segment Review
Valves
in CHF million Q1 2024 Q4 2023 Chg.1 Q1 2023 Chg.2
Order intake 190.7 195.8 -2.6% 102.4 86.2%
Semiconductors 154.2 144.5 6.8% 58.8 162.3%
Advanced Industrials 36.5 51.3 -28.9% 43.6 -16.4%
Order backlog 287.0 262.5 +9.3% 363.4 -21.0%
Net sales 162.1 180.9 -10.4% 182.9 -11.4%
Semiconductors 127.1 131.8 -3.6% 139.3 -8.8%
Advanced Industrials 35.0 49.1 -28.8% 43.6 -19.7%
Inter segment sales 14.8 16.0 -7.1% 21.4 -30.8%
Segment net sales 176.9 196.9 -10.2% 204.3 -13.4%
1 Quarter-on-Quarter 2 Year-on-Year
Valves reported Q1 orders of CHF 191 million, down 2.6% sequentially.
Year-on-year order intake was up 86% from the trough order level seen in Q1
of 2023. Net sales in the quarter decreased to CHF 162 million, down 10%
sequentially and 11% on a year-on-year comparison.
The year-on-year Q1 order development was mainly driven by the
Semiconductors business unit, where orders increased 162% year-on-year to
CHF 154 million off a particularly weak Q1 2023. Net sales amounted to
CHF127 million, down 4% compared with Q4 2023.
Orders in the Advanced Industrials business unit declined in Q1 year-on-year
by 16% to CHF 37 million and by 29% compared to Q4 2023. Sales decreased
similarly in Q1 year-on-year by 20% to CHF 35 million.
Global Service
in CHF million Q1 2024 Q4 2023 Chg.1 Q1 2023 Chg.2
Order intake 45.0 40.7 10.6% 34.0 32.5%
Order backlog 36.9 29.2 26.8% 53.0 -30.2%
Net sales 36.4 40.8 -10.9% 49.8 -27.0%
Inter segment sales - - - - -
Segment net sales 36.4 40.8 -10.9% 49.8 -27.0%
1 Quarter-on-Quarter 2 Year-on-Year
The Global Service segment reported Q1 orders of CHF 45 million, 11% higher
than in Q4 2023 and 33% higher year-on-year. Sales reached CHF 36 million,
down 27% compared to the same period last year.
Outlook: Improving market conditions through 2024 expected to lead to better
annual results
VAT expects investments in semiconductor manufacturing equipment to
gradually improve over the course of 2024 as investments - especially in the
memory sector - are expected to recover from the lower levels seen in 2023.
This development is expected to benefit the semiconductor exposure in the
Valves business and the Global Service business at VAT. Being the undisputed
technology and market leader, VAT is confident to benefit from the
anticipated recovery, especially as a large part of the spend will be geared
towards the leading-edge technologies in both the logic and the memory area.
In addition, VAT expects further growth in adjacent products such as
advanced modules or motion components. Also, the display business is
anticipated to gain traction as renewed investments are executed for the
production of advanced OLED products. Increasing factory capacity
utilizations in the existing fabs will on the other hand increase the
requirement for spare parts and consumables for our service business.
Together with the growing installed base of serviceable VAT products, Global
Service is estimated to grow again in 2024. The continued expansion of
vacuum-based manufacturing into industries such as industrial coatings and
e-beam applications is expected to benefit the Advanced Industrials
business, while solar photovoltaic demand is expected to grow as the
transition to renewable energies continues in most parts of the world.
On this basis, VAT continues to expect full-year sales and EBITDA in 2024 to
be higher compared to 2023. The EBITDA margin is also expected to increase,
however the expected continuing strength of the Swiss franc against VAT's
trading currencies will continue to present headwinds to the company's
margin recovery.
In 2024, VAT will complete construction of the new production facility in
Malaysia, thereby ramping-up production, and engineering services in Penang.
At the same time, significant investments in R&D will also continue,
including in the new Innovation Center in Switzerland.
Net income and free cash flow are also expected to be higher; capex is
forecast at CHF 70 to 80 million.
Despite the positive outlook, short-term market factors such as slower
progress on reducing inflation, concerns about the overall strength of the
global economy, or ongoing geopolitical tensions represent uncertainty
factors influencing the timing and magnitude of the expected recovery. This
uncertainty is also displayed in the rather wide range of WFE growth
expectations by the semiconductor market research firms. On average, these
firms look at WFE spend in 2024 between USD 90 to 100 billion with
accelerated double-digit growth in 2025.
Guidance for Q2 2024
VAT expects sales of CHF 235 to 255 million.
Additional information
VAT will host a short media and investor conference call today, April 11,
2024, at 10:00 a.m. CEST.
Participants of the conference call will also be able to join the moderated
Q&A session. Please follow the link below to access the conference call
pre-registration:
LINK TO CONFERENCE CALL PRE-REGISTRATION
Participants unable to pre-register may dial in by calling:
+41 58 810 70 00 (Switzerland / Rest of World)
+44 207 098 0702 (UK)
+1 631 570 5612 (USA)
A replay of the conference call will be available on the VAT website
approximately 2 hours after the event.
For further information please contact: Christopher Wickli
VAT Group AG +41 81 553 75 39
Investor Relations & Sustainability
Michel R. Gerber
T +41 81 553 70 13
(1)investors@vat.ch
1. mailto:investors@vat.ch
Financial calendar 2024
Friday, May 3, 2024 Tuesday, Record date, closing of share May 14, 2024 Thursday, May 16, register, 5.00 pm CEST Annual General 2024 Tuesday, May 21, 2024 Meeting, St Gallen, Switzerland Thursday, July 18, 2024 Ex-date Dividend payment Half-year Thursday, October 17, 2024 2024 results Q3 2024 trading update
ABOUT VAT
We change the world with vacuum solutions - that is our purpose as the
world's leading supplier of high-end vacuum valves. The Group reports in two
segments: Valves and Global Service. The Valves segment is a global
developer, manufacturer and supplier of vacuum valves for the semiconductor,
displays, photovoltaics and vacuum coating industries as well as for the
industrial and research sector. Global Service provides local expert support
to customers and offers genuine spare parts, repairs and upgrades. VAT
reported net sales of CHF 885 million in 2023 and employs some 2,700 people
worldwide, with representatives in 29 countries and manufacturing sites in
Switzerland, Malaysia, and Romania.
FORWARD-LOOKING STATEMENT
Forward-looking statements contained herein are qualified in their entirety
as there are certain factors that could cause results to differ materially
from those anticipated. Any statements contained herein that are not
statements of historical fact (including statements containing the words
"believes," "plans," "anticipates," "expects," "estimates" and similar
expressions) should be considered to be forward-looking statements.
Forward-looking statements involve inherent known and unknown risks,
uncertainties and contingencies because they relate to events and depend on
circumstances that may or may not occur in the future and may cause the
actual results, performance or achievements of the company to be materially
different from those expressed or implied by such forward-looking
statements. Many of these risks and uncertainties relate to factors that are
beyond the company's ability to control or estimate precisely, such as
future market conditions, currency fluctuations, the behavior of other
market participants, the performance, security and reliability of the
company's information technology systems, political, economic and regulatory
changes in the countries in which the company operates or in economic or
technological trends or conditions. As a result, investors are cautioned not
to place undue reliance on such forward-looking statements.
Except as otherwise required by law, VAT disclaims any intention or
obligation to update any forward-looking statements as a result of
developments occurring after the date of this report.
News Source: VAT Group AG
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End of Inside Information
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Language: English
Company: VAT Group AG
Seelistrasse 1
9469 Haag
Switzerland
Phone: +41 81 771 61 61
Fax: +41 81 771 48 30
E-mail: reception@vat.ch
Internet: www.vatvalve.com
ISIN: CH0311864901
Listed: SIX Swiss Exchange
EQS News ID: 1878043
End of Announcement EQS News Service
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1878043 11-Apr-2024 CET/CEST
