ASSLAR (dpa-AFX) - Vacuum pump specialist Pfeiffer Vacuum expects less profit in its day-to-day business this year due to higher costs. Although sales revenues are expected to reach roughly the record level of 2022, thanks in part to a high order backlog from the previous year, only about 12 percent of revenues are likely to remain as operating profit (Ebit), the company announced Tuesday in Asslar, Hesse. Last year, the margin had still risen to 13 percent, and analysts had expected a further increase on average for 2023. The news therefore went down badly on the stock market.

In early trading in Frankfurt, Pfeiffer shares fell by a good half percent to €157.00, making it one of the biggest losers in the SDax small cap index. Since the turn of the year, it has thus lost around nine percent.

The fact that operating earnings before interest and taxes are likely to decline in the current year was explained by management as being due to high inflation. Pfeiffer will probably not be able to pass on the rising costs in full to its customers. At the same time, however, the supply chain should continue to stabilize, it said. Already last year, Pfeiffer had not been able to increase its operating margin as much as originally planned at 14 percent.

In view of record sales and order intake, Pfeiffer CEO Britta Giesen nevertheless considered 2022 to be a successful year for the company. The vacuum market, for example, recorded strong growth, with demand from customers in the semiconductor industry developing in a cyclical manner. For 2023, the manager now expects lower demand from semiconductor companies as they postpone the construction of production facilities into the future. However, Pfeiffer says it has a large backlog of orders from the previous year, which should partially offset the decline in the semiconductor segment.

Manufacturers of electronic chips are among the vacuum pump manufacturer's most important customers. Its equipment is used in chip production to keep the air in production rooms clean. Last year, Pfeiffer's Semiconductors and Future Technologies segment grew faster than the rest of the company, contributing more than half of consolidated sales.

Overall, the company's sales grew 19 percent last year to nearly 917 million euros. Operating profit increased by 28 percent to a good 119 million euros, as the company had already announced in February. Below the line, Pfeiffer earned a good 86 million euros, 39 percent more than in the previous year.

However, shareholders are expected to settle for a dividend of 11 cents per share, having received €4.08 for 2021. Pfeiffer had announced the cut in February and justified it with high investments of around €100 million. These are to serve the expansion of production, logistics and service buildings as well as the improvement of productivity./stw/tav/mis