Summary: VAT Group, a valve manufacturer headquartered in Switzerland, has reported a decrease in orders and sales for the fourth quarter, citing a cautious investment climate in the semiconductor industry. Despite the decline, the company remains optimistic about the gradual improvement of the semiconductor investment cycle in the coming years.
VAT Group, a prominent valve manufacturer based in Switzerland, has faced challenges in the fourth quarter due to a careful investment environment in the semiconductor industry. Preliminary net sales for the quarter amounted to 221 million Swiss francs ($259.7 million), indicating a 24% decrease compared to the same period last year. However, the net sales figure falls within the guidance range of CHF200 million to CHF230 million provided by the company earlier.
Similarly, orders for the fourth quarter showed a decline of 5% compared to the previous year, totaling approximately CHF237 million. Despite this downturn, VAT Group is encouraged by the gradual improvement of the semiconductor investment cycle as they head into the year 2024. The company attributes this positive outlook to project wins in its advanced industrial business unit.
As for the overall performance in 2023, VAT Group reported a 23% decrease in net sales to approximately CHF885 million. The earnings before interest, taxes, depreciation, and amortization margin stood at around 30.5%, down from 35.0% in the previous year. The company also experienced a significant drop in order intake, which amounted to CHF692 million, representing a 43% decline compared to the prior year. VAT Group attributes these results to lower sales impact and unfavorable foreign-exchange developments, particularly the weakening of the Swiss franc against the U.S. dollar.
VAT Group plans to provide a detailed outlook along with the final 2023 results in early March. Despite the challenges faced in the semiconductor industry, the company remains optimistic about its future prospects and the recovering investment cycle in the coming years.