High order intake in first half-year forms solid basis for Jenoptik’s future development
The Jenoptik Group closed the first half-year 2014 as expected, with a markedly better development of business in the months of April to June than in the prior quarter.
- Order intake grows to 314.5 million euros, an increase of 11.2 percent
- Group revenue at 283.2 million euros unchanged from prior year
- Slight improvement in Group EBIT to 24.0 million euros
- Executive Board firms up 2014 guidance at lower end of range
Order intake increased further. Revenue at same level as in prior year. Slight improvement in Group earnings.
At 314.5 million euros, the order intake of the Jenoptik Group in the first half-year 2014 was 11.2 percent higher than in the prior year (prior year 282.7 million euros). It was also considerably above revenue in this period, allowing the book-to-bill ratio to improve to 1.11 (prior year 1.00). As at June 30, 2014, the order backlog in the Jenoptik Group, at 438.3 million euros, exceeded the figure at the end of 2013 by 6.5 percent (31/12/2013: 411.4 million euros). In the period covered by the report, however, projects in the Defense & Civil System segment were postponed; they are due to be included in the order intake for the second half-year.
In the first six months, Jenoptik generated consistent year-on-year revenue of 283.2 million euros despite a challenging economic environment (prior year 283.6 million euros). The Lasers & Optical System segment recorded significant growth, compensating for the dip in the other two segments. Revenue in Europe, including Germany, rose by 1.2 percent to 179.5 million euros and accounted for some 63 percent of total Group revenue. In Asia/Pacific, revenue increased by approximately 70 percent, while it fell in the Americas, the Middle East and Africa. In part, this is due to transfers of projects from the Americas to Asia.
With revenue at the same level as in the prior year, the Group operating result (EBIT) increased to 24.0 million euros (prior year 23.5 million euros). The EBIT margin thus improved from 8.3 percent to 8.5 percent and the gross margin rose to 35.2 percent (prior year 34.3 percent). “We see the improvement in gross profit as the success of our Jenoptik Excellence Program. It also gives us the chance to consistently target our investment on other projects, for example the Group-wide harmonization of our SAP landscape,” says Chief Financial Officer Rüdiger Andreas Günther.
Earnings before tax (EBT) improved to 20.7 million euros (prior year 20.3 million euros). Earnings after tax (EAT) came to 17.9 million euros, following 17.5 million euros in the prior year, resulting in earnings per share of 0.31 euros (prior year 0.31 euros).
As at the end of the first half-year 2014, the Jenoptik Group had 3,528 employees (31/12/2013: 3,433 employees), a rise of 2.8 percent. Around 16 percent of the workforce is employed abroad.
Stable asset position. Equity ratio further improved.
The Jenoptik Group’s equity ratio increased to 54.8 percent (31/12/2013: 53.0 percent). The debt ratio continued to improve from 0.89 at the end of 2013 to 0.83 as at June 30, 2014.
Working capital was built up in the first half-year 2014, in part to generate revenue for the months ahead from a high order intake. The second quarter also saw the distribution of dividends worth 11.4 million euros. This led to a scheduled increase in net debt to 84.4 million euros as at June 30, 2014 (31/12/2013: 44.1 million euros).
Development of the three segments: Lasers & Optical Systems remained driver of growth and earnings also in the second quarter.
The Lasers & Optical Systems segment reported a successful course of business in the first six months of 2014. Compared to the same period in the prior year, revenue rose a good 13.1 percent to 118.1 million euros (prior year 104.4 million euros). This growth was partly sustained by stronger demand for laser systems for plastics processing and successful project start-ups in the medical technology and life sciences markets. EBIT increased 58.7 percent from 9.7 million euros in the prior year to 15.4 million euros. At 125.3 million euros, the order intake was significantly above the level of the prior year (prior year 114.2 million euros) and almost 10 percent higher than revenue in the reporting period. This resulted in a further order backlog increase in the segment, which came to 100.0 million euros at the end of June 2014, 6.1 percent higher than at the end of 2013 (31/12/2013: 94.3 million euros).
The prevailing reluctance to invest seen in the industrial metrology sector since last year, particularly in the automotive industry, was still felt in the second quarter 2014, and led to a 6.5 percent drop in revenue in the Metrology segment to 84.6 million euros (prior year 90.5 million euros). EBIT in the segment reduced to 9.2 million euros (prior year 10.8 million euros). This was due to a weak development of revenue in the area of industrial metrology. Despite the reluctance to invest, the segment’s order intake of 84.9 million euros was essentially at the same level as in the prior year (prior year 86.7 million euros). At 70.9 million euros, the order backlog was slightly below the figure for the end of 2013 (31/12/2013: 72.8 million euros).
Primarily due to the postponement and extended time frames of various projects, revenue in the Defense & Civil Systems segment was down year-on-year in the first six months, at 80.1 million euros (prior year 88.4 million euros). The segment’s EBIT came to 0.5 million euros due to only a moderate development of revenue and both a project-related and seasonally lower-margin product mix. In addition, the EBIT was positively influenced in the prior year by a one-off effect (prior year 4.9 million euros). At 103.1 million euros, the order intake greatly exceeded the half-year revenue and order intake of the prior year (prior year 83.5 million euros). The order backlog thus increased to 269.0 million euros, following 246.9 million euros as of December 31, 2013.
Outlook: Dynamic development to pick up in the second half-year. 2014 figures firmed up at lower end of original guidance range in light of increasing geopolitical uncertainties.
In the second half-year 2014, the Executive Board of JENOPTIK AG anticipates more dynamic development than in the first six months. Current economic figures, however, suggest a downturn in the real economy which may significantly affect the willingness of companies to invest. Primarily contingent upon demand and market conditions not deteriorating further, the Executive Board nevertheless currently expects to achieve revenue growth of around 5 percent in the current fiscal year. Group EBIT is due to come in at around 55 million euros in 2014.
The quarterly report is available online for download in the Investor Relations section. The Jenoptik Publications app provides an optimized view of the report on mobile devices with iOS and Android operating systems. The app is available for download in the App Store and at Google Play.
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.