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Jenoptik reaffirms forecasts for 2013. Development of business remains on track after the first half-year

Jenoptik remained on track in the 1st half-year 2013. The business gained momentum in the 2nd quarter 2013 thanks to the increased demand in markets outside Europe and the initial positive signals in the business with the semiconductor industry.

  • In a challenging economic environment sales and order intake in the second quarter up on the previous year.
  • EBIT down on the figure for the previous year, as expected.
  • Metrology segment remains the growth driver.
  • Outlook for 2013 reaffirmed: growth in sales of up to 5 percent and Group EBIT of between 50 and 55 million euros before costs for projects required for the development of the Group are expected.
“Jenoptik is internationally well positioned and is therefore strong enough to go ahead also in weak business cycles. Our good results in the 2nd quarter of this year are evidence of that”, explains Jenoptik Chairman Dr. Michael Mertin.

Order intake and Group sales in the second quarter up on the level in the previous year.

The order intake showed a positive trend during the course of the 1st half-year 2013, increasing by 12.8 percent in the period covered by the report to 150.7 million euros, a rise of approx. 18 million euros over the previous quarter 2013. In the first half-year 2013, Jenoptik generated an order intake of 282.7 million euros, the same as in the previous year (prev. year 282.4 million euros) and at the same level as sales for the period. In this context, it should be taken into account that the figure for the previous year included major orders in the Metrology and Lasers & Optical Systems segments.

At 446.1 million euros, the Group order backlog was at the same high level as at the end of 2012 (31.12.2012: 446.8 million euros).

The Jenoptik Group also reported an improvement in sales in the second quarter, up by 3.8 percent to 151.6 million euros. The business also showed a positive trend over the quarters, enabling the Group to increase sales in the months April to June by approx. 20 million euros over the start of the year. At 283.6 million euros, Group sales in the first six months of 2013 equaled the high level achieved in the previous year of 283.8 million euros. The Metrology segment remained the growth driver in the Group with sales increased by 13.1 percent compared with the previous year. Jenoptik’s internationalization strategy is taking effect: approx. 65 percent of Group sales were generated abroad (prev. year 64.9 percent). There was a particularly strong rise in sales in the regions of America and the Middle East/Africa.

The Group operating result (EBIT), at 23.5 million euros, as expected remained below the level achieved in the previous year (prev. year 26.0 million euros) despite the improved gross margin. The EBIT margin for the first six months of 2013 was 8.3 percent (prev. year 9.2 percent). The earnings situation was influenced primarily by investments in the implementation of the Jenoptik Group’s growth strategy, mainly comprising costs incurred for the planned expansion of the international sales structures and R+D activities, as well as for the continuation of the Jenoptik Excellence Programs.

Earnings after tax came in at 17.5 million euros (prev. year 19.6 million euros).

As at the end of the 1st half-year 2013, the Jenoptik Group had 3,346 employees (31.12.2012: 3,272). The number of employees therefore showed a small rise of 2.3 percent, mainly resulting from the initial consolidation of foreign companies. Around 14 percent of the workforce is employed abroad.

Sound financial situation. Shareholders’ equity quota exceeds the 50 percent mark.

At 10.2 million euros, the Jenoptik Group posted another positive cash flow from operating activities in the double-figure million euro range (prev. year 14.5 million euros). Net debt rose to 80.8 million euros as at June 30, 2013 in line with expectations (31.12.2012: 74.6 million euros). The rise was mainly due to the dividend payment in the sum of 10.3 million euros in June and to the expansion of working capital, among other things in preparation for future customer projects.

The profit generated in the 1st half-year 2013 led to an increase in the shareholder’s equity to 339.0 million euros (31.12.2012: 330.3 million euros). ”With a shareholder’s equity quota of 50.5 percent, the debenture loans and the syndicated loan concluded in April 2013 in the sum of 120 million euros, Jenoptik has a long-term and very robust financing structure in place. This provides us with sufficient room for maneuver for our future growth,” declared Chief Financial Officer Rüdiger Andreas Günther.

Development of the three segments: Metrology remains the growth driver.

The course of business in the Lasers & Optical Systems segment in the 1st half-year 2013 was characterized by a continuing reticence to invest in some areas. Sales came in at 104.4 million euros and were therefore 5.8 percent down on the period in the previous year which was strong in particular in the semiconductor sector (prev. year 110.9 million euros). As expected, the segment EBIT reduced from 16.2 million euros in the previous year to 9.7 million euros; the result was influenced by the weaker development of sales, the planned increase in expenses for research and development and the expansion of international sales. At 114.2 million euros, the order intake was up on the previous year (prev. year 108.0 million euros) and consequently exceeded the level of sales. The order backlog has increased further as a result of the good order intake and as at the end of the 1st half-year 2013 totaled a comfortable 115.0 million euros, an increase of 9.3 percent over the figure for the end of 2012.

In the 1st half-year 2013, the Metrology segment reported another positive performance and posted a sharp increase in both sales and earnings compared with the same period in the previous year. Sales grew by 13.1 percent to 90.5 million euros (prev. year 80.0 million euros). The biggest contribution to the rise in sales came from the Traffic Solutions division. The segment EBIT reported a sharp increase of 65.5 percent compared with the previous year to 10.8 million euros (prev. year 6.5 million euros). As expected, at 86.7 million euros, the order intake was down on the high level achieved in the previous year (prev. year 100.5 million euros) which had included a portion of the large order for traffic safety technology in Malaysia. At 85.1 million euros, the order backlog was slightly lower than at the year-end 2012 (31.12.2012: 87.4 million euros).

During the course of the 1st half-year 2013, the Defense & Civil Systems segment reported a positive sales performance. As at the end of the reporting period, sales totaled 88.4 million euros, 4.4 percent down on the figure for the previous year (prev. year 92.4 million euros) compared with minus 9.4 percent as at the end of the 1st quarter. The segment EBIT was up by 17.7 percent to 4.9 million euros (prev. year 4.2 million euros), influenced in part by positive one-off effects. The order intake was 83.5 million euros, a sharp rise over the previous year’s level (prev. year 73.2 million euros). The order backlog was down slightly to 249.7 million euros (31.12.2012: 255.8 million euros).

Outlook for full year 2013: forecast reaffirmed.

On the basis of the positive trend in the development of business in the year to date, the Jenoptik Executive Board reaffirms its forecasts and anticipates a slight growth in sales of up to 5 percent for the fiscal year 2013. Depending upon the course of the semiconductor cycle and the development of demand from the automotive industry, particularly in the 2nd half-year 2013, the Group EBIT achieved in the operating business should come in between 50 and 55 million euros before costs in the mid single-figure million euro range for projects which are required for the development of the Group (such as JOE and Go Lean).

You will be able to access the full half-year report on the internet in the Investor Relations section.

This announcement can contain forward-looking statements that are based on current expectations and certain assumptions of the management of the Jenoptik Group. A variety of known and unknown risks, uncertainties and other factors can cause the actual results, the financial situation, the development or the performance of the company to be materially different from the announced forward-looking statements. Such factors can be, among others, changes in currency exchange rates and interest rates, the introduction of competing products or the change of the business strategy. The company does not assume any obligation to update such forward-looking statements in the light of future developments.