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Weak demand in the machinery industry: VAT Vakuumventile AG with its headquarters in Haag SG has to take action. With sales of nearly one billion francs in vacuum valves and related services in the semiconductor, display and solar industries, the company is kicking off short-term work. Of the approximately 2,500 workers, 650 are affected.
According to the company’s announcement on Thursday, the measure was implemented in St. Gallen officials for a period of three months until the end of August. It can be extended if necessary.
VAT had already reported weak business activity in mid-April, with figures for the first quarter. Sales in the first quarter fell by just over ten percent, thanks to “only” backlog orders, while order intake fell more than half year-on-year.
VAT justifies the short run with the current economic downturn reflecting the sharp decline in spending by semiconductor customers in terms of slower consumer spending, consistently higher interest rates and lower economic growth. In addition, semiconductor production will further weaken due to the increasingly strained trade relations between the US and China.
The outlook for the full year 2023 was correspondingly bleak in April. The company expects a decline in sales, operating profit and net profit. Operating margin (EBITDA) should be at the lower end of the target corridor of 32 to 37 percent for the year as a whole.
Retaining employees is a priority
The short-term work program allows to retain technically well-trained employees and to have the necessary resources for the recovery in demand that is expected to continue in 2024.
VAT continues to assume that demand will remain limited in the second half of 2023 and that recovery will only begin in 2024.
(SDA/rae)
Source :Blick
I’m Tim David and I work as an author for 24 Instant News, covering the Market section. With a Bachelor’s Degree in Journalism, my mission is to provide accurate, timely and insightful news coverage that helps our readers stay informed about the latest trends in the market. My writing style is focused on making complex economic topics easy to understand for everyone.
