INFICON Continuing Strong and on Record Course
· Third quarter sales of USD 122.2 million 32.8% over last year and 3.2% below second quarter 2021
· Operating income of USD 22.0 million, operating income margin 18.0% after 11.4% a year ago
· INFICON expands capacities for future growth
· Raised sales guidance of USD 490-510 million (previously USD 480-500 million) at 18-20% operating income margin
Bad Ragaz/Switzerland, October 21, 2021
INFICON Holding AG (SIX Swiss Exchange: IFCN) reports sales of USD 122.2 million for the third quarter 2021, a figure very close to the record level of USD 126.3 million recorded in the previous quarter. Compared with the same period of last year, INFICON increased sales markedly by 32.8%. Excluding currency effects (+1.8 percentage points) and effects from acquisitions (+0.3 percentage points), the organic plus was 30.7%. Production runs at full capacity in practically all areas. At all major manufacturing sites, INFICON is continuing to invest into its production capabilities (equipment, clean rooms, and calibration capacities), processes and personnel, in order to meet the rising demand better and without restrictions. In addition, certain bottlenecks in sourcing and in the logistics in Asia have limited an even more rapid growth and created additional cost. With a view to the well-filled order books, INFICON raises its sales guidance from previously USD 480 – 500 million to now USD 490 – 510 million. The expected operating income margin is 18 – 20%.
In the Semi & Vacuum Coating market (USD 59.2 million; + 39.6%), the semiconductor business largely contributed to the strong sales development. The special challenges mentioned above, led, however, to a decline of 6.6% compared with the previous quarter. Both the OEM business as well as the end consumer markets continue to flourish mainly in Asia and in China in particular. The vacuum coating business was flat on a solid level. Sales in the market for Refrigeration, Air Conditioning & Automotive (USD 24.2 million; +27.4% year-over-year; -8.3% over Q2) also picked up considerably in the year-over-year comparison. The refrigeration and air conditioning business developed nicely, while the automotive market suffered from material shortages and production stops at certain customers, which curtailed the demand for INFICON products. E-mobility continued to grow. In the General Vacuum market, INFICON achieved a record-high sales level of USD 33.5 million (+29.3% year-over-year; +10.6% over Q2), supported by a strong and largely European private label business and increasing sales to China. Sales to the Security & Energy market strongly depend on public orders and remained rather low at USD 5.3 million, yet grew by 12.8% when compared with the same period of last year. Compared to the previous quarter, sales decreased by 14.5%.
The regional sales split shows a globally broadly based sales increase in all world areas. Asia shows the strongest increase with 57.3% and contributed 48.7% to the quarterly sales. Asia also reports rising sales compared with the preceding quarter. Sales in Europe and America remained a bit lower than in the second quarter and accounted for around a quarter of sales, both.
In the third quarter, the gross profit margin was 46.8% after 45.0% a year ago. The shortages in the global logistics and in sourcing, demanding personnel recruiting efforts – reflecting the generally tight labor market and certain consequences from the COVID-19 pandemic – continue to put pressure on the margins. These costs as well as the investments into additional space, equipment, and capacities of USD 5.8 million alone for the third quarter remained high. What is more, USD 10.8 million went into research and development. The remaining costs were tightly managed, leading to an operating income of USD 22.0 million or an operating income margin of 18.0% - practically unchanged from the preceding quarter and clearly above the 11.4% recorded a year ago. After taxes, the net income was USD 16.8 million compared with USD 7.9 million a year ago. Earnings per share were USD 6.87 after USD 3.24 for the same period of last year.
INFICON’s balance sheet at the end of September remains solid as evidenced by a net cash position of USD 42.2 million. The inventory turns improved from 2.8 to now 3.1. INFICON shows an equity ratio of 62% (65% a year ago) at the end of September. The cash flow generated in the third quarter amounts to solid USD 21.9 million after USD 15.5 million in the same period of last year.
Outlook 2021
The situation on world markets, in sourcing and logistics continue to be tight; the COVID-19 pandemic remains a risk factor, too. With a view to the high capacity utilization and the strong order book, INFICON assesses the outlook for the current year optimistically. INFICON thus raises its sales guidance for the full year again, from previously USD 480 – 500 million to now USD 490 – 510 million. The expected operating income margin is 18 – 20%.
Web Conference
INFICON discusses its third quarter 2021 results today in more detail at an English language web conference at 09:30 a.m. CEST. Participants will first be in a listen-only mode during the presentation. Following their prepared remarks, Management will then take questions. The presentation is available for download at 07:00 a.m. in the investor section of the INFICON website www.inficon.com.
You can access the Microsoft Teams conference using the following links.
http://bit.ly/IFCN_WebConference
https://ir.inficon.com/conference-calls-or-webcasts/
Communication calendar
The communication calendar of INFICON is continuously updated and available in the investor section of the INFICON Website https://ir.inficon.com/financial-calendar/.
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About INFICON
INFICON is a leading provider of innovative instrumentation, critical sensor technologies, and Smart Manufacturing/Industry 4.0 software solutions that enhance productivity and quality of tools, processes and complete factories. These analysis, measurement and control products are essential for gas leak detection in air conditioning/refrigeration, and automotive manufacturing. They are vital to equipment manufacturers and end-users in the complex fabrication of semiconductors and thin film coatings for optics, flat panel displays, solar cells and industrial vacuum coating applications. Other users of vacuum based processes include the life sciences, research, aerospace, packaging, heat treatment, laser cutting and many other industrial processes. We also leverage our expertise in vacuum technology to provide unique, toxic chemical analysis products for emergency response, security, and environmental monitoring. INFICON is headquartered in Switzerland and has world-class manufacturing facilities in Europe, the United States and China, as well as subsidiaries in China, Denmark, Finland, France, Germany, India, Italy, Japan, Korea, Liechtenstein, Singapore, Sweden, Switzerland, Taiwan, the United Kingdom and the United States. INFICON registered shares (IFCN) are listed on SIX Swiss Exchange. For more information about INFICON and its products, please visit www.inficon.com.
This press release and oral statements or other written statements made, or to be made by us contain forward-looking statements that do not relate solely to historical or current facts. These forward-looking statements are based on the current plans and expectations of our management and are subject to a number of uncertainties and risks that could significantly affect our current plans and expectations, as well as future results of operations and financial condition. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
