VAT Media Release on Q1 2024 Trading Update
Source: EQS
Q1 2024 results
Outlook for full-year 2024
Guidance for Q2 2024
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 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 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 The first quarter book-to-bill ratio was 1.2x and the order backlog on Segment Review Valves
1 Quarter-on-Quarter 2 Year-on-Year
Valves reported Q1 orders of The year-on-year Q1 order development was mainly driven by the Semiconductors business unit, where orders increased 162% year-on-year to Orders in the Advanced Industrials business unit declined in Q1 year-on-year by 16% to Global Service
1 Quarter-on-Quarter 2 Year-on-Year The Global Service segment reported Q1 orders of 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 Net income and free cash flow are also expected to be higher; capex is forecast at 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 Guidance for Q2 2024 VAT expects sales of
Additional information VAT will host a short media and investor conference call today, 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 ( +44 207 098 0702 ( +1 631 570 5612 ( A replay of the conference call will be available on the VAT website approximately 2 hours after the event.
Financial calendar 2024
ABOUT VAT 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: End of Inside Information |
Language: | English |
Company: | |
Seelistrasse 1 | |
9469 Haag | |
Phone: | +41 81 771 61 61 |
Fax: | +41 81 771 48 30 |
E-mail: | reception@vat.ch |
Internet: | www.vatvalve.com |
ISIN: | CH0311864901 |
Listed: | |
EQS News ID: | 1878043 |
End of Announcement |
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1878043 11-Apr-