Jenoptik remains on course of growth with new record figures
- Group revenue rose to approx. 685 million euros in 2016, according to preliminary figures
- Disproportionate rise in EBIT, by approx. 12 percent to in total over 68 million euros, this corresponds to an EBIT margin of approx. 10 percent
- Order intake of over 730 million euros as well as frame contracts of around 160 million euros are a good basis for future growth
- Net debt fully eliminated thanks to strong cash flow
- Outlook: course of profitable growth set to continue in 2017
In the 2016 fiscal year, the Jenoptik Group continued on its course of profitable growth and achieved new record figures. Group revenue increased, coming to approximately 685 million euros (prior year 668.6 million euros). Jenoptik also achieved an operating result that sets a new record for recent years. According to preliminary figures, total EBIT rose at a faster rate than revenue, by approximately 12 percent to over 68 million euros (prior year 61.2 million euros). The EBIT margin correspondingly improved to around 10 percent (prior year 9.2 percent) and was thus considerably above the target corridor for 2016, while EBIT in continuing operations came to over 66 million euros, equating to an EBIT margin of around 9.7 percent (prior year 61.0 million euros; 9.1 percent).
“Following good development from January to September 2016, momentum of our business particularly grew in the fourth quarter, such that we even managed to exceed our targets in some areas. Thanks to our ongoing process of internationalization, a more profitable revenue mix and the further roll-out of our efficiency programs, we achieved another considerable rise in our operating results,” says Jenoptik President & CEO Michael Mertin.
Order situation and financial resources form good basis for further growth
In the 2016 fiscal year, the Jenoptik Group received orders worth more than 730 million euros (prior year 636.7 million euros). The order intake was thus above revenue, resulting in a book-to-bill ratio of 1.07 (prior year 0.95). The Group also obtained frame contracts worth around 160 million euros (prior year 59.2 million euros). The rise in the key order figures was essentially the result of stronger demand in the Mobility segment and from the defense industry.
Thanks to an excellent free cash flow of around 80 million euros (prior year 71.8 million euros), net debt was completely eliminated by the end of 2016.
Growth in all segments
The Optics & Life Science segment particularly benefited from good demand for optoelectronic modules and solutions for the information and communication industry. Its business with the semiconductor equipment industry also improved slightly in 2016. Segment revenue rose to almost 222 million euros (prior year 213.7 million euros). EBIT came to over 33 million euros (prior year 19.7 million euros). Alongside good business with optical systems, this was also due to improved profitability in the healthcare sector.
In the Mobility segment the upswing in investment seen in the automotive industry showed positive effects, particularly in the area of laser machines. Preliminary figures indicate an increase in 2016 revenue to just under 248 million euros (prior year 244.6 million euros). Despite a considerable increase in the fourth quarter, the segment EBIT for 2016 came to approximately 24 million euros and, as expected, was lower than in the prior year due to the changed product mix and upfront investments for new traffic safety projects (prior year 27.0 million euros).
Revenue in the Defense & Civil Systems segment grew to around 218 million euros in 2016 (prior year 211.4 million euros). This was mainly due to good development in the fields of energy and aviation systems, and in the service business. The segment EBIT improved to approximately 19 million euros (prior year 17.9 million euros), primarily the result of good revenue growth and a changed product mix.
Profitable growth set to continue in 2017
“In key aspects, the past fiscal year was the best in the company’s history. Jenoptik’s success in its established markets and in new areas of business shows that we have set the right strategic course for the future with a strong alignment to growth markets as well as global mega trends. The Group thus satisfies all the conditions to ensure further successful and promising growth in the coming years,” says Jenoptik President & CEO Michael Mertin.
“On the basis of present economic forecasts and our solid order and project pipeline, our outlook to 2017 is positive. In view of the Group’s lasting transformation from a technology-driven to a more customer and market-centric company, we expect to see a continuing growth in revenue and earnings for the current fiscal year,” adds CFO Hans-Dieter Schumacher.
“The preliminary figures for 2016 vindicate our adopted course toward achieving our communicated targets,” says Hans-Dieter Schumacher. By 2018, revenue is expected to be around 800 million euros – including smaller acquisitions – and the EBIT margin to achieve approximately 10 percent. The share of revenue in our focus regions of the Americas and Asia/Pacific combined will then grow to over 40 percent of group revenue.
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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. A variety of known and unknown risks, uncertainties and other factors may cause the actual results, the financial situation, the development or the performance of the company to diverge significantly from the information provided here. Such factors may include changes in currency exchange rates and interest rates, the introduction of competing products or a change in business strategy. The company does not assume any obligation to update such forward-looking statements in the light of future developments.
As an integrated photonics group, Jenoptik divides its activities into three segments: Optics & Life Science, Mobility and Defense & Civil Systems. Its customers around the world mainly include companies in the semiconductor equipment industry, automotive and automotive supplier industry, medical technology, security and defense technology as well as the aviation industry. Jenoptik has about 3,500 employees worldwide.