Jenoptik successfully closes 2013 fiscal year
In 2013, the Jenoptik Group saw its fourth successive year of organic growth and generated revenue above the 600 million euro mark for the first time in the company’s recent history.
In view of these successful developments and the Group’s sound financial footing, the Executive Board and Supervisory Board of JENOPTIK AG will propose increasing the dividend payment from 0.18 euros to 0.20 euros per share to the Annual General Meeting. That equates to a rise in the payout ratio from 22 percent to approximately 25 percent.
High profitability level of prior year almost matched.In 2013 the Jenoptik Group achieved revenue growth of 2.6 percent to 600.3 million euros (prior year 585.0 million euros). On a regional level, growth momentum was primarily attributable to Germany and America. Jenoptik generated 62.0 percent of its revenue abroad (prior year 64.4 percent). The Lasers & Optical Systems segment reported the sharpest increase in revenue at 5.8 percent. The three segments target a balanced market portfolio with their core competencies. The automotive/machine construction sector remained the most important market, accounting for 27.9 percent of revenue.
The Group operating result (EBIT) totaled 52.7 million euros (prior year 54.8 million euros) and, as scheduled, was influenced by the expansion of international sales and R+D activities and expenses for Group development projects. The high profitability level in the 2012 record year was almost matched last year; the EBIT margin was 8.8 percent (prior year 9.4 percent).
Lower interest rates due to more favorable financing terms and the first positive investment result in particular led to an improvement in the financial result to minus 5.5 million euros (prior year minus 8.7 million euros). Earnings before tax (EBT) consequently rose from 46.1 million euros to 47.2 million euros. Earnings per share came to 0.82 euros, compared to 0.88 euros in the prior year.
Order intake just below high level in prior year. Well-filled order pipeline.In the 2013 fiscal year, the Jenoptik Group received new orders worth a total of 575.3 million euros. The order intake was thus just slightly below the high level in the prior year of 587.2 million euros, characterized by several major orders in the Metrology and Lasers & Optical Systems segments. Due to a weaker economic trend, 2013 also saw orders being postponed to subsequent periods.
At the end of 2013, the order backlog of the Jenoptik Group, at 411.4 million euros, was below the high level in the prior year (31/12/2012: 446.8 million euros) due to a changed order structure, primarily in the Defense & Civil Systems segment.
Key financial indicators substantially improved, net debt considerably reduced.The key financial and balance sheet indicators continued to show positive development in the 2013 fiscal year. The free cash flow improved from 43.7 million euros to 47.0 million euros. Net debt could therefore be reduced from 74.5 million euros to 44.1 million euros, despite the payment of a higher dividend. The equity ratio rose to 53.0 percent (prior year 49.3 percent), thereby improving for the fourth year in succession. “Jenoptik has a long-term and viable financing structure which provides the Group with room for maneuver to secure future growth and the ongoing implementation of its strategy,” says CFO Rüdiger Andreas Günther.
More employees at home and abroad.In light of the expansion of business, the number of employees in the Jenoptik Group rose 4.9 percent to 3,433 at the end of 2013 (prior year 3,272). The greatest number were taken on in the Metrology and Lasers & Optical Systems segments. In the course of the internationalization strategy, the number of employees abroad increased to 475 (prior year 433), equating to 13.8 percent of the combined workforce.
New revenue records in the Lasers & Optical Systems and Metrology segments.Over the year, the segments’ development of business and earnings was significantly supported by measures to optimize internal processes and the success achieved in implementing the internationalization strategy. In 2013 all three segments in the Jenoptik Group recorded an increase in free cash flow and achieved a positive EBIT also in 2013.
In the Lasers & Optical Systems segment, Jenoptik further strengthened its position as a leading supplier of optical and optoelectronic system solutions. In the 2013 fiscal year, revenue rose by 5.8 percent to 224.7 million euros (prior year 212.3 million euros). The EBIT came to 24.6 million euros (prior year 27.1 million euros), the EBIT margin was 10.9 percent (prior year 12.8 percent). The development of earnings was chiefly influenced by a change in the product mix, start-up costs for new customer projects and the expansion of international sales. At 221.4 million euros, the order intake just exceeded the high level in the prior year (prior year 219.9 million euros). The segment's order backlog reduced to 94.3 million euros at the end of the year (31/12/2012: 105.2 million euros).
Revenue in the Metrology segment grew by 2.6 percent to 187.4 million euros in 2013 (prior year 182.7 million euros), with growth split evenly between Industrial Metrology and Traffic Solutions. The segment benefited from robust demand from the automotive industry for new measurement techniques for fuel-saving and low-emission engines, and from deliveries for projects relating to traffic safety. The segment EBIT, at 22.6 million euros, and an EBIT margin of 12.0 percent remained at a high level (prior year 25.6 million euros, 14.1 percent). The order intake declined by 13.2 percent to 172.5 million euros in 2013 (prior year 198.7 million euros). The order intake in 2012 had included major projects in Malaysia and Oman. The order backlog as at year-end fell from the high figure in the prior year to 72.8 million euros (31/12/2012: 87.4 million euros).
Despite a challenging economic environment and falling defense budgets, revenue of 185.1 million euros in the Defense & Civil Systems segment matched the level of the prior year in 2013 (prior year 186.4 million euros). Mainly thanks to one-off effects due to planned site optimization in Germany and improved cost structures, the segment EBIT rose to 11.6 million euros (prior year 7.8 million euros). The EBIT margin improved to 6.2 percent (prior year 4.2 percent). In 2013, the order intake exceeded the level of the prior year by 8.6 percent and came to 179.2 million euros (prior year 165.0 million euros). The segment's order backlog reduced to 246.9 million euros at the end of the year (31/12/2012: 255.8 million euros).
Further profitable growth expected in 2014.In 2014, the Jenoptik Group again wants to invest strongly in the expansion of the international sales structures and in the development of innovative products. In addition, the measures for internal process optimization and the projects for Group development will also be continued as scheduled. “In view of the considerable capital expenditure we are making in Jenoptik’s future and our robust economic development, we are forecasting stronger growth in revenue and earnings for the current fiscal year. We want to see an increase in revenue of between 5 and 10 percent. The Group EBIT is expected to show a marked improvement in 2014; our guidance is within the 55 to 62 million euro range,” says Michael Mertin.
The full Annual Report will be available for download in the Investors Relations section of the website.
This press release may contain statements relating to the future which are based on current assumptions and forecasts made by the corporate management of the Jenoptik Group. Various known and unknown risks, uncertainties and other factors may result in major discrepancies between the actual results, financial position, development or performance of the company and the assessment presented here. Such factors may include exchange-rate swings, interest rate changes, the launch of competitor products or alterations to the corporate strategy. The company shall accept no obligation to update such future projections or adapt them to future events or developments.