Negative 2005 group earnings impacted by sale of Clean Systems. Outlook for 2006: further growth at Photonics
Sales of the Jenoptik Group in 2005 totaled 1,914.4m euros.
Sales of the Jenoptik Group in 2005 totaled 1,914.4m euros (prev. year 2,523.0m euros, including sales of approx. 450m euros from M+W Zander Gebäudetechnik GmbH which is no longer included in consolidation). Earnings before tax, financial result and depreciation (EBITDA) of the group reached 43.7m euros (prev. year 128.8m euros). Group earnings from operating activities (EBIT) totaled minus 9.8m euros (prev. year plus 81.1m euros). The group net result was clearly in the red, at minus 69.4m euros (prev. year 19.0m euro) as had been announced.
Group earnings in 2005 were significantly influenced by the sale of the Clean Systems business division which affected all the items of the consolidated statement of income. The main effects were devaluations resulting from the sale, the loss from the project with delays which was not taken over by the purchaser and which was finished in the meantime. The costs for the IPO of M+W Zander Facility Engineering Ltd. at the Singapore stock exchange that had been planned and the reduction of the stake in M+W Zander Gebäudetechnik to 25.1 percent and its full depreciation are also included.
The net debt as at December 31, 2005 amounted to 375.5m euros (December 31, 2004: 238.8m euros). The increase also results from the fact that due to the reclassification of Clean Systems in accordance with IFRS 5, cash of 114.6m euros and liabilities to banks of 78.1m euros are no longer included in the net debt. The net debt will be offset by the forthcoming payment of the purchase price at closing in the low three figure million euro range which will sharply reduce net debt in 2006. In view of the net loss reported for the year no dividend will be paid for the year 2005.
Outlook for 2006
The closing of the sales contract, together with the transfer of the shares to M+W ZANDER Holding AG as well as the payment of the purchase price, are expected to take place during the course of the 2nd quarter of 2006. The sale of the Clean Systems business division will create both opportunities as well as risks which result from individual projects remaining with Jenoptik and which could once again have a negative effect on the results in 2006. Photonics sales in 2006 are expected to total between 420 und 450m euros, a rise of between 6 and 11 percent. The result from operating activities of Photonics is expected to be between 9 and 10 percent of sales.
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