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Jenoptik starts into 2014 according to plan

The Jenoptik Group completed a good first quarter 2014, as expected. The order situation, in particular, showed a clearly positive development.

  • Order intake in the first quarter at 160.3 million euros, 21.4 percent above the figure in the comparable prior year period
  • Group revenue slightly up on prior year at 136.9 million euros
  • Group EBIT unchanged from prior year at 10.5 million euros
  • Lasers & Optical Systems segment is key driver of growth and earnings, restrained demand from the automotive industry
  • 2014 guidance confirmed
“In view of the high order intake level, particularly in the Lasers & Optical Systems and the Defense & Civil Systems segments, and the excellent order backlog in the first quarter, we assume today that we will achieve our growth target of 5 to 10 percent for the current fiscal year. In view of the restrained demand from the automotive industry and the political and economic developments in Europe this growth target remains challenging,” says Jenoptik President & CEO Dr. Michael Mertin.

Order intake sharply exceeds quarterly revenue and prior year period. Revenue increased slightly, Group earnings at same level as in prior year.

At 160.3 million euros, the Jenoptik Group’s order intake in the first quarter 2014 was a significant 21.4 percent higher than in the comparable prior year period (prior year 132.0 million euros) and was also well in excess of revenue in the quarter. The book-to-bill ratio thus improved to 1.17 (prior year 1.00). As of March 31, 2014, the order backlog in the Jenoptik Group, at 432.8 million euros, exceeded the figure as at the end of 2013 by 5.2 percent (31/12/2013: 411.4 million euros).

In the first three months, the Group generated revenue totaling 136.9 million euros, a slight increase on the comparable period of the prior year (prior year 132.0 million euros). The rise in revenue of 3.7 percent came from the Lasers & Optical Systems segment. Revenues in Asia/Pacific rose by around 48 percent and in Germany by around 7 percent.

At 10.5 million euros, the Group operating result (EBIT) was at the same level as in the prior year (prior year 10.6 million euros). The EBIT margin was 7.7 percent (prior year 8.0 percent), and the gross margin, at 35.0 percent, was also slightly down on the prior year (prior year 36.2 percent). The result in the first quarter was influenced by Group development projects such as the JOE ERP project, a changed product mix and start-up costs in connection with the significantly increased order intake.

At minus 1.5 million euros, the financial result was at the same level as in the prior year (prior year minus 1.6 million euros). Earnings before tax remained constant at 9.0 million euros (prior year 9.0 million euros). Earnings after tax totaled 7.7 million euros (prior year 7.9 million euros).

As at the end of the first quarter 2014, the Jenoptik Group had 3,474 employees, a rise of 1.2 percent compared to the end of 2013 (31/12/2013: 3,433 employees). Around 15 percent of the workforce was employed abroad.

Stable asset position. Equity ratio further improved.

The earnings after tax achieved in the first quarter 2014 resulted in an equity ratio rise to 54.1 percent in the Jenoptik Group. (31/12/2013: 53.0 percent). As at March 31, 2014, the debt/equity ratio continued to improve from 0.89 at the end of 2013 to 0.85.

The working capital was built up in the first three months of 2014, in particular in preparation of processing the significantly increased order intake. This led to a scheduled increase in net debt as of March 31, 2014, to 58.7 million euros (31/12/2013: 44.1 million euros).

“With the consistent continuation of our projects within the framework of our Jenoptik Excellence Program we continue to work on generating profitable and value-enhancing growth as well as sustainable cash flows for the Jenoptik Group,” said CFO Rüdiger Andreas Günther.

Development of the three segments: Lasers & Optical Systems segment key driver of growth and earnings.

The Lasers & Optical Systems segment reported a successful course of business in the first three months of 2014. At 58.6 million euros, revenue in the segment showed a sharp increase of 18.0 percent on the same quarter of the prior year (prior year 49.7 million euros), influenced by greater demand for laser systems for plastics processing and higher revenues with the semiconductor equipment industry and the healthcare and life science markets. A higher-margin product mix combined with the excellent development of revenue resulted the EBIT doubling to 8.5 million euros from 4.1 million euros in the prior year. At 65.3 million euros, the order intake exceeded the figure of 52.2 million euros in the comparable prior-year period by more than a quarter and also surpassed revenue in the period covered by the report. The segment’s order backlog consequently grew by 6.5 percent to 100.4 million euros (31/12/2013: 94.3 million euros).

The prevailing general reluctance to invest seen in the industrial metrology sector, in particular in the automotive industry, since last year was still felt in the first quarter and resulted in a 4.5 percent drop in revenue in the Metrology segment to 40.8 million euros (prior year 42.8 million euros). The segment’s EBIT reduced by 48.7 percent to 3.4 million euros (prior year 6.5 million euros). This was chiefly due to a weak development of revenue in the area of industrial metrology. A positive indicator for the further course of the year is the fact that the segment’s order intake increased by 5.9 percent to 44.7 million euros (prior year 42.2 million euros). At 76.1 million euros, the segment order backlog was above the figure for the end of 2013 (31/12/2013: 72.8 million euros).

In the first three months, mainly due to postponements and extension in the time frame of projects in the defense sector, the Defense & Civil Systems segment’s revenue came to 37.5 million euros, just below the figure for the comparable period in the prior year (prior year 39.5 million euros). With only a moderate development of revenue, the segment income from operations (EBIT) was minus 0.9 million euros and consequently below the figure for the prior year (prior year 0.3 million euros). In addition to lower revenue, this was also due to a seasonally and project-related lower-margin product mix. At 49.8 million euros, the order intake greatly exceeded both the quarterly revenue and order intake of the prior year (prior year 37.4 million euros). The order backlog increased slightly to 258.3 million euros, following 246.9 million euros as of December 31, 2013.

Outlook for the current fiscal year 2014: Forecast reaffirmed.

In 2014, the Jenoptik Group again wants to invest strongly in the expansion of its international sales structures and in the development of innovative products. In addition, the measures for internal process optimization and Group development projects will also continue as scheduled. These factors aim to further boost profitability and better leverage potential synergy.

The Executive Board of JENOPTIK AG reaffirms its 2014 forecast. Revenue is expected to grow by between 5 and 10 percent. Group EBIT is due to come in within the 55 to 62 million euro range.

The full quarterly report is available online for download in the Investor Relations section.

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.