By VAT Group, a valve manufacturer headquartered in Switzerland, has reported a decline in orders and sales for the fourth quarter of the year. This decline can be attributed to the careful investment environment in the semiconductor industry.
Preliminary net sales for the fourth quarter amounted to 221 million Swiss francs ($259.7 million), representing a 24% decrease compared to the same period last year. However, the figures came in slightly above the mid-point of the guidance range of CHF200 million to CHF230 million provided in October.
Orders for the fourth quarter reached approximately CHF237 million, reflecting a 5% drop compared to the previous year. Despite this decline, VAT believes that the results indicate a gradual improvement in the semiconductor investment cycle leading into 2024. The company credits project wins in the advanced industrial business unit for boosting these results.
For the entirety of 2023, net sales for VAT Group decreased by 23% at current foreign exchange rates to approximately CHF885 million. The earnings before interest, taxes, depreciation, and amortization margin stood at about 30.5%, down from 35.0% in 2022. The order intake also experienced a significant drop of 43%, amounting to CHF692 million compared to the prior year.
VAT attributes these results to lower sales impact and unfavorable foreign-exchange developments, particularly in relation to the Swiss franc against the U.S. dollar.
A detailed outlook for the future will be published along with the final 2023 results in early March, according to VAT Group.
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