- FY2008 sales up 8.4% to USD 256.5 million; income from operations up 1.4% to USD 33.3 million
- 4Q 2008 sales down 12.2% to USD 55.7 million; income from operations down 26.4% to USD 6.3 million
- Proposed dividend of CHF 6.00 per share for FY 2008 reflects consistent payout policy
Bad Ragaz/Switzerland, February 24, 2009. INFICON Holding AG (SIX Swiss Exchange: IFCN), ended 2008 with a 8.4% sales increase to USD 256.5 million and a 1.4% increase in operating income to USD 33.3 million despite a substantial slow-down towards year-end. Fourth quarter sales were down 12.2% to USD 55.7 million as activity in many of INFICON’s target markets declined. The company has rapidly taken measures to align the cost structure to the current market conditions. In addition, the strong balance sheet and cash flow allow INFICON to continue its payout policy. Based on these factors, the Board of Directors intends to propose a cash dividend of CHF 6.00 per share for 2008 at the Annual General Meeting of Shareholders on May 5, 2009. Fourth quarter sales affected by global slow-down
The worldwide slow-down reached several of the company’s target markets: Sales for the fourth quarter of 2008 totaled USD 55.7 million, down 12.2% from USD 63.4 million recorded in the same quarter of 2007. Excluding a negative effect of foreign currency translation of 1.4% and a
sales contribution of 0.9% related to the December 2007 acquisition of Sigma Instruments, quarterly sales decreased organically by 11.7%. Income from operations totaled USD 6.3 million, a decrease of 26.4% compared with USD 8.5 million in the 2007 fourth quarter. Net income for the 2008 fourth quarter decreased 47.3% to USD 4.0 million compared with USD 7.5 million recorded in the prior year period. On a per diluted share basis, net income fell 46.5% to USD 1.84 compared with USD 3.44 in last year’s fourth quarter. “Sales to General Vacuum customers lost some momentum in the fourth quarter while sales to the Emergency Response & Safety market actually rose over last year’s same period. However, sales in both the Semiconductor & Vacuum Coating and the Refrigeration & Air Conditioning markets
were significantly impacted by cautious customer spending and prolonged year-end holidays,” explained CEO and President Lukas Winkler.
Full year 2008 Results
For the full year 2008, sales to the General Vacuum and the Emergency Response & Safety markets both grew, while revenues from the Semiconductor & Vacuum Coating and the Refrigeration & Air Conditioning markets declined by single-digit figures. INFICON achieved total sales for fiscal 2008 of USD 256.5 million, representing an 8.4% increase over the USD 236.6 million recorded for fiscal 2007. Organic growth accounted for 1.3% of the increase, foreign currency exchange effect for 5.2%, and sales from acquisitions made in 2007 for 1.9%. For the full year 2008, income from operations rose 1.4% to USD 33.3 million compared with USD 32.9 million in 2007, and net income decreased 1.8% to USD 24.3 million from USD 24.8 million. On a per diluted share basis, net income rose 5.2% to USD 11.26 compared with USD 10.70 in 2007.
Cash flow and strong balance sheet enable cash dividend
Cash provided by operating activities in the fourth quarter was USD 9.7 million compared to USD 7.3 million in the same quarter last year. Operating cash flow for the full year 2008 totaled USD 29.6 million after USD 30.2 million for 2007, and INFICON closed the year with a strong equity ratio of 76.6%. The company’s Board of Directors intends to propose a cash dividend of CHF 6.00 per share for 2008 at the May 5, 2009 Annual General Meeting of Shareholders.
Mr. Winkler concluded, “Our diversified technology portfolio serves various global markets. This wide market base reduces for INFICON the impact of what has turned into a broad, global economic recession. Our flexible cost structure, quick action to decrease expenses, our strong cash position as well as a balance sheet without any long-term debt, all constitute substantial advantages in today’s extremely challenging environment. Nonetheless, visibility remains very limited and we have therefore decided to defer providing financial guidance for 2009.”
Live Analyst/Media conference recording to be archived on website
INFICON will discuss its fourth quarter and full year results today at 0900 a.m. CET at an analyst and media conference in Zürich, Hotel Continental, Stampfenbachstrasse 60, 8006 Zürich. Management presentations, which will be made in English, will be recorded and posted with the accompanying visuals in the Investor Relations section of the INFICON website www.inficon.com later today.
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INFICON is a leading provider of innovative instrumentation, critical sensor technologies, and advanced process control software that enhance productivity and quality in sophisticated industrial vacuum processes. These analysis, measurement and control products are essential for gas leak detection in air
conditioning/refrigeration manufacturing and vital to original equipment manufacturers (OEMs) and endusers in the complex manufacturing of semiconductors, flat panel displays, magnetic and optical storage media, and precision optics. 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, Finland, France, Germany, Japan, Korea, Liechtenstein, Singapore, 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 forwardlooking 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.