Jenoptik posts good revenue and order intake in the first quarter
The Jenoptik Group ended the first quarter of 2015 as expected, with particularly encouraging development in orders and revenue seen in the Metrology as well as Defense & Civil Systems segments.
- Revenue up on prior year at 145.8 million euros
- Order intake increased to 166.8 million euros
- EBITDA boosted to 15.8 million euros, EBIT as expected below prior year at 8.7 million euros
- 2015 guidance confirmed
Revenue up 6.4 percent, positive order situationIn the first three months of 2015, the Jenoptik Group generated revenue totaling 145.8 million euros, 6.4 percent up on the prior year (prior year 136.9 million euros). This was also the highest level of revenue posted by Jenoptik in a first quarter for a number of years. While the Metrology and Defense & Civil Systems segments grew, the Lasers & Optical Systems segment declined year-on-year due to weakened demand from the semiconductor equipment industry. Revenue was boosted in Germany, Europe and Asia.
At 166.8 million euros, the order intake in the first three months was up 4.1 percent compared to the prior-year quarter (prior year 160.3 million euros) and well above the quarter’s revenue. As of March 31, 2015, the order backlog, at 447.4 million euros, exceeded the 2014 year-end figure by 5.9 percent (31/12/2014: 422.5 million euros; 31/03/2014: 432.8 million euros).
Earnings before interest, taxes, depreciation and amortization (EBITDA) rose 7.2 percent to 15.8 million euros (prior year 14.8 million euros). However, despite a slight increase in revenue income from operations (EBIT) at 8.7 million euros did not, as expected, reach the prior-year level (prior year 10.5 million euros), which included positive one-off effects. Depreciation effects from acquisitions completed in 2014, among other things, also reduced earnings in the first quarter of 2015. The EBIT margin fell from 7.7 percent to 6.0 percent.
On the back of an improved financial result of 1.1 million euros (prior year minus 1.5 million euros), the Jenoptik Group achieved higher earnings before tax in the period covered by the report than in the prior year (prior year 9.0 million euros). Earnings after tax boosted to 8.3 million euros, up on the prior-year figure of 7.7 million euros.
As of March 31, 2015, the number of employees in the Jenoptik Group remained almost constant at 3,570 (31/12/2014: 3,553 employees). Around 18 percent of the workforce is employed abroad.
Good asset position, financing power further improvedWith the increased order intake and in preparation for future customer projects, working capital was built up in the first three months of 2015. Taken together with the payment made to the last silent real estate investor, this resulted, as scheduled, in an increase in net debt to 111.2 million euros as of March 31, 2015 (31/12/2014: 92.1 million euros).
In the first quarter of 2015, cash flows from operating activities came to minus 0.8 million euros, considerably above the prior-year figure of minus 7.1 million euros. The free cash flow improved to minus 3.3 million euros (prior year minus 10.7 million euros).
The Jenoptik Group’s equity ratio increased to 51.5 percent (31/12/2014: 50.1 percent). Together with the issued debenture loans and the syndicated loan, Jenoptik has a highly viable financing structure. “This gives us sufficient room for maneuver to finance our future growth,” says Chief Financial Officer Hans-Dieter Schumacher. Jenoptik extended the existing syndicated loan in March 2015 and increased it from 120 million euros to 230 million euros. The company also successfully placed new debenture loans worth an increased sum of 125 million euros in April.
Improved development in the Metrology segmentThe Lasers & Optical Systems segment reported a slow start of business in the first three months of the fiscal year. In part due to weakened demand from the semiconductor equipment industry, revenue fell 3.9 percent to 56.3 million euros against the strong prior-year quarter which was marked by a very strong lithography market (prior year 58.6 million euros). Business with laser systems and optoelectronic modules for medical technology applications showed positive development. The segment EBIT reduced by 43.2 percent to 4.8 million euros. The prior-year figure of 8.5 million euros was positively influenced by the one-off sale of a systems technology. At 61.9 million euros, the order intake was down 5.2 percent on the prior year but above revenue in the reporting period. The segment’s order backlog rose to 108.3 million euros (31/12/2014: 100.8 million euros).
Slight capital expenditure growth in the automotive industry stimulated demand in the Metrology segment. In the first quarter, its revenue rose by 14.0 percent compared to the same period in the prior year, to 46.5 million euros (prior year 40.8 million euros). By contrast, the segment EBIT fell 24.0 percent to 2.5 million euros (prior year 3.4 million euros), in part due to depreciation effects from the companies acquired in 2014. The order intake increased significantly, to 55.5 million euros (prior year 44.7 million euros). At 88.5 million euros, the segment’s order backlog was also well above the 2014 year-end figure (31/12/2014: 77.2 million euros).
In the first quarter of 2015, the Defense & Civil Systems segment generated revenue of 42.7 million euros, 13.9 percent higher than in the prior-year period (prior year 37.5 million euros). With improved revenue and a higher margin in the product mix, the EBIT grew from minus 0.9 million euros in the prior year to 0.8 million euros. At 50.7 million euros, the order intake exceeded both the prior-year figure and first-quarter revenue in 2015 (prior year 49.8 million euros). It includes the scheduled major order to equip the Patriot missile defense system. The segment’s order backlog rose to 253.5 million euros (31/12/2014: 245.9 million euros).
2015 guidance confirmedThe Executive Board reaffirms its 2015 guidance: Group revenue is expected to be between 650 and 690 million euros; the EBIT margin between 8.5 and 9.5 percent. This presupposes that political and economic conditions do not deteriorate. In particular, these include export restrictions, regulations on the European level, the Russia/Ukraine conflict and other disruptions in the euro zone.
The “Jenoptik app” can be used to view the report on mobile devices running iOS or Android. It can be downloaded from the App Store or Google Play.
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.