Machinery industry VAT lands significantly more orders in the second quarter
VAT received significantly more orders in the second quarter. The company is sticking to its targets for the year as a whole.
18.07.2024, 06:50
SDA
Specifically, orders climbed by 74.5 percent to CHF 270.9 million from April to June, as the company announced on Thursday.
Turnover also continued to recover. Revenue rose by 13.6 percent year-on-year to 251.1 million Swiss francs. The company thus reached the upper end of its guidance of 235 to 255 million francs.
Profitability picked up again over the first half of the year following the dip in the previous year. Operating profit (EBITDA) increased by 2.2 percent to 135.3 million Swiss francs in the first half of the year. The corresponding margin rose by 0.9 percentage points to 30.1 percent. The bottom line after six months is a net profit of CHF 94.0 million, compared to CHF 84.2 million in the same period last year.
VAT exceeded analysts' expectations in terms of sales, order intake and net profit. The company slightly missed the consensus for EBITDA.
Business to pick up in the second half of the year
VAT expects investment conditions in the semiconductor segment to gradually improve over the course of 2024. Even stronger growth is then expected to start in 2025.
Growth will be driven primarily by AI applications. Most activities will be concentrated in the memory segment, the company continues.
At the same time, the company confirmed its forecast for the year as a whole. Accordingly, sales, EBITDA, EBITDA margin, net profit and free cash flow are expected to be above the previous year's figures. The EBITDA margin is expected to be at the lower end of the target range of 32 to 37 percent.
For the third quarter, VAT management is forecasting sales at constant exchange rates of CHF 235 to 255 million.
