Jenoptik Group increases net income by 50 percent to EURO 33.3 million in the fiscal year 1999
Jenoptik Executive Board revises its forecast for year 2000 net income upwards. Record level in order intake for first quarter of 2000. Dividend for fiscal 1999 to be increased to EURO 0.50.
A major restructuring scheme in the past fiscal year of 1999 has had a positive effect on the Jenoptik Group revenue situation. Compared to the previous year, the Group's net income rose by 50 percent to EURO 33.3 million (1998: EURO 22.2 million), a turnout which is ten percent higher than the preliminary figure announced in January this year. Earnings before interest and tax somewhat increased to EURO 55 million (previous year: EURO 54.3 million), declared Dr. h.c. Lothar Späth, the Chairman of the Executive Board of JENOPTIK AG at an accounts press-conference held on Tuesday in Jena.
With a figure of EURO 1,395 million, Jenoptik Group sales were slightly better (up 2.2 percent) on a comparable basis. Foreign sales in total Group turnover increased to 60.3 percent. Domestic sales decreased to 39.7 percent. Under the corporate reconstruction scheme, some business parts were sold off, which resulted in a reduction of the corporate sales potential by approximately EURO 242 million. As was pointed out by Jenoptik chief Dr. Späth, the efforts to improve on the Group's profit earning capacity had priority over sales growth.
New record level in order intake in fiscal 1999.
The Jenoptik Group is able to boast a new record level in order intake for fiscal 1999. With EURO 1,552 million, orders received were up 21 percent on the previous year (EURO 1.279 million). By comparable standards (adjusted for Group restructuring effects), this latest figure is even higher by 67 percent. Due to the favourable order intake situation, the order backlog was also positively affected despite the fact that the calculated figure for total order backlog does not account for the order backlog portions of those business entities which were sold off. It increased by 7.1 percent to EURO 1,179 million (EURO 1,101 million the year before).
DVFA-performance strongly improved.
By DVFA valuation standards (German Association of Financial Analysis and Investment Counselling), earnings after taxes on income significantly increased to EURO 16.8 million in the fiscal year 1999 (previous year: EURO 7.5 million). On a per-share basis, the DVFA result improved from EURO 0.15 to 0.43 in the fiscal year 1999. This DVFA-based ratio was determined for the two reference years of 1998 and 1999, following the basic calculation criteria formula which also takes into account fictitious potential taxes and goodwill depreciations.
Loss providers consequently removed.
"1999 has proved a difficult yet successful year for our corporate business. Difficult - because we had to make some more fundamental changes in the Group's business division structure. Successful – because this Group restructuring worked out well in very little time. We have divested ourselves from such low-profit heavy-risk business fields as wireless tele-communication systems, while other business fields were focused and trimmed for profitability" said Jenoptik chief Lothar Späth.
In addition to the Group's reorganisation, he cited two more reasons for the positive revenue situation. The operating result of the Clean Systems and Photonics business divisions has distinctly improved and Jenoptik holding costs were considerably reduced.
Dividend to increase from EURO 0.39 to 0.50 per share.
Jenoptik shareholders are to profit from this leap in earnings. The Executive Board and the Supervisory Board of JENOPTIK AG will propose to the general shareholder meeting on June 7, 2000 in Erfurt that a dividend of EURO 0.50 per share be paid out for the fiscal year 1999 (against EURO 0.39 for the previous year). This corresponds to a rise by about thirty percent on the preceding year.
New record in order intake during first quarter of 2000.
The first quarter of the new fiscal year has provided an excellent start for the Jenoptik Group. According to figures available up until now, the Jenoptik Group has achieved the highest ever quarterly order intake level in its company history. The preliminary order intake figure for quarter I of 2000 amounts to roughly EURO 670 million, which signifies a growth of 24 percent on a comparable basis. Each of the two business divisions Clean Systems and Photonics have contributed their share to this result. In terms of requested volume, the biggest orders account for the Clean Systems division. Not included in the quarter I balance is an Infineon order for a new chip factory in Dresden, which falls within the second quarter.
With a lot of enthusiasm, the Asset Management business division has started in the current fiscal year. During the three first months of 2000, the venture capital subsidiary of Jenoptik, Deutsche Effecten- und Wechsel-Beteiligungsgesellschaft AG (DEWB) acquired equity shares in three more innovative enterprises.
ASCLEPION-MEDITEC AG was the first affiliated company to be successfully launched on the New Frankfurt Stock Exchange Market by DEWB on March, 22 this year.
Jenoptik set for growth in the year 2000.
In view of this excellent start, Jenoptik chief Späth expects that there will be a substantial growth in Jenoptik corporate sales. According to his words, sales are to go up by 15 percent on a comparable basis. Sales in the Clean Systems division are to rise by at least 15 percent to a level between EURO 1.15 and 1.2 thousand million. For the Photonics division, sales are anticipated to grow by twelve to sixteen percent to a level between EURO 200 and 210 million. Asset Management plans to launch three more companies on the stock market in 2000 through its venture capital provider DEWB with the proviso that the capital market will provide the basic conditions to back these plans.
Forecast for Jenoptik Group net income revised upwards.
Earnings of the Jenoptik Group are to rise even more than sales in the fiscal year 2000. According to Späth, Jenoptik will reap the actual benefits of its corporate restructuring efforts in the current fiscal year 2000. It has entered into the new fiscal year without any old liabilities and business in each of the three business divisions has started well. With the present boom in the semiconductor industry and the proceeds from the Asclepion initial stock offering in Asset Management, the Jenoptik Group anticipates a clearly better operating result for first quarter of 2000 than in the same quarter of last year. For the first quarter of 2000, the Executive Board of Jenoptik expects a Group result that is on a level with the net income for fiscal 1999.
Späth pointed out that this high profit contribution rate cannot be sustained over the coming three quarters because the Asset Management business has a more intermittent character.
The Executive Board revises its January 2000 forecast upwards, stating that the Group's net income will grow by thirty to forty percent. "In any case, the Jenoptik Group net income for 2000 is going to be 50 percent above the previous year level", said Späth verbally. Further acquisitions to consolidate the market positions of the Clean Systems and Photonics divisions are strategically conceivable. "However, everything must fit when we decide for a commitment. In any case, there is enough financing scope."