VAT Group announced on Thursday the appointment of Urs Gantner as their new chief executive, replacing Mike Allison. The Swiss vacuum-valves manufacturer reported lower net profit and sales for the first half of the year due to weakened demand in the semiconductor industry.
Gantner, who currently serves as the executive vice president of VAT’s semiconductor business, will assume the CEO position at the beginning of 2024. Allison had previously announced his plan to step down by the end of 2023.
First-Half Financial Performance
VAT recorded a first-half net profit of 84.2 million Swiss francs ($97.8 million), down from CHF147.6 million in the same period last year. Earnings before interest and taxes (EBIT) also declined to CHF111.7 million from CHF172.1 million.
During the second quarter, the company’s sales amounted to CHF221 million, compared to CHF285.9 million in the corresponding months of 2022. VAT stated that this aligned with their expectations.
Impact of Semiconductor Industry Slowdown
VAT attributed the decrease in orders, sales, and profitability to the slowdown in the semiconductor industry, which constitutes their largest end market.
Outlook for 2023
Looking ahead, VAT maintains its outlook for 2023 and anticipates lower sales and EBITDA compared to the previous year. The EBITDA margin is expected to fall below the range of 32% to 37%. Furthermore, both net profit and free cash flow are projected to be lower than in 2022.
