INFICON with increased Results in Second Quarter 2024

Corporate Contact
Matthias Tröndle
Chief Financial Officer
+423 388 3510
[email protected]

'Ad hoc announcement pursuant to Art. 53 LR'

Announcement of INFICON Holding AG
Bad Ragaz/Switzerland, July 31, 2024

• Sales increase in the second quarter by 8.3% to USD 167.0 million compared with the previous quarter; almost unchanged year-over-year 
  (-2.3%)
• Sales in Semiconductor Vacuum Coating and Security Energy with new quarterly records
• Operating profit margin increase from 19.5% to 20.2%
• Guidance 2024 with unchanged midpoint: Sales of USD 660-690 (previously 650-700) million; operating income margin around 20%

INFICON's (SIX Swiss Exchange: IFCN) second quarter 2024 revenue increased 8.3% over the preceding first quarter. Compared with the same period of last year, this represents an organic decline of 1.2% and an overall decline of 2.3%, excluding 0.5%pt from acquisitions and a negative impact of 1.6%pt from currency fluctuations. The gross margin improved to 47.1% up from 45.0% a year ago. The operating income increased to USD 33.7 million, yielding a margin of 20.2% after 19.5% recorded for the same period of last year. The net result for the period rose from USD 24.8 million last year to USD 26.5 million; resulting in a stronger net profit margin of 15.9%, up from 14.5% a year ago. Earnings per share were USD 10.86 after USD 10.14 calculated for end of June last year.

Outlook
Based on the situation in the four target markets, an improving order intake, and the expectation of stronger sales for the remainder of the year, INFICON has narrowed the targeted sales range. INFICON expects revenues of USD 660-690 (previously 650-700) million for the full year 2024, with an unchanged midpoint sales target of USD 675 million, and an operating profit margin around 20%.

Cash flow and Balance Sheet
In the second quarter, INFICON generated an operating cash flow of USD 19.0 million. Working capital reached USD 219.0 million after USD 221.5 million a year ago, mostly reflecting a corresponding drop in accounts receivables and inventories. INFICON closed the quarter with a net cash position of USD 14.1 million. Even though dividends were paid out in April, the equity ratio at the end of the reporting quarter increased to 64.0% after 58.4% a year ago. 

Development in the target markets and world regions
INFICON recorded sales increases in all target markets except General Vacuum. Here, the shipments to Asian and American customers became weaker and dropped to USD 35.5 million by 22.5% compared with the same quarter of last year and by 22.7% vis-à-vis the preceding first quarter. This market contributed 21.3% to Group sales.

INFICON’s biggest market Semiconductor Vacuum Coating made up for 50.3% of the Group’s second quarter sales. With USD 84.0 million, sales to this market mark a new quarterly record and increased by 28.8% compared with the first quarter and by 2.5% against the same quarter last year. Most of the quarterly sales increase came from Asia where both, the OEM business with equipment manufacturers as well as the end user business with chip makers benefitted. Sales to Europe and North America were, in contrast, roughly flat.

Sales generated in the Refrigeration, Air Conditioning Automotive market continued to grow and contributed 21.7% to Group sales. The sales volume increased by 8.5% in the yearly, and 10.8% in the sequential comparison. Year-on-year, INFICON saw a considerably lower business volume in Europe while sales to Asia and America grew substantially. When compared with the first quarter 2024, INFICON achieved higher sales volumes in all regions, most markedly so in America.

Second quarter sales in INFICON's smallest market, Security Energy, which is strongly influenced by large government contracts, increased by 14.1% year-on-year or by 8.2% sequentially to a new quarterly high of USD 11.2 million. As the supply chain situation continues to normalize, the focus remains on the ongoing reduction of the order backlog.

With 46.8% of sales, Asia continues to be the most important sales region for INFICON, followed by America (27.9%) and Europe (24.6%). While the sales generated in Asia slowed 4.4% compared with the second quarter of last year, they picked up 17.8% when compared with this year’s first quarter. Sales generated with American customers went a new quarterly high of USD 46.5 million, up 2.3% in both comparisons. For Europe, the sales show both a slight decline in the annual (-4.4%) and the quarterly assessments (-0.5%).

Half-year
After the strong first half of 2023, INFICON's half-year 2024 sales slightly declined by 2.4% or adjusted for currency and acquisition effects by 1.4% organically to USD 321.2 million. The gross profit for the period rose from USD 149.4 million to USD 152.4 million, yielding a higher gross margin of 47.4%, up from 45.4%. After tightly managed costs and slight increase in R expenses, the operating income for the first half of 2024 increased and has reached USD 65.0 million after USD 63.3 million last year. This represents an operating profit margin of 20.2% of sales and an improvement of 100 basis points. The 11.1% higher net result of USD 52.1 million translates into higher earnings per share of USD 21.33 after USD 19.19 a year ago.

Half-year report, presentation, web conference
The half-year report of INFICON Holding AG as well as the presentation on the quarterly and half-year financial statements are now available online in the Investor Relations section of the INFICON website www.inficon.com at https://ir.inficon.com/financial-results-and-presentations/

INFICON will discuss the second quarter and half-year 2024 financial statements today at 15:00 CEST at an English-language web conference. You can reach the Microsoft Teams conference under the following links:

www.inficon.com/web-conference

Communication calendar 2024
INFICON's communication calendar is continuously updated and can be found in the Investors Relations section of the INFICON website or directly at https://ir.inficon.com/financial-calendar/

Information by E-Mail
The latest information from INFICON will be sent to you automatically by e-mail if you register for this service in the Investors section of the INFICON website at https://ir.inficon.com/contact-and-information-request/

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, Italy, Japan, Korea, Liechtenstein, Malaysia, Mexico, 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.