Jenoptik got off to a good start in 2018
- Group revenue grew by 16.0 percent to 189.9 million euros
- EBITDA improved by 55.9 percent to 27.7 million euros, EBIT almost doubled to 20.8 million euros
- Executive Board confirms 2018 guidance based on current business performance
“We made a good start into the new fiscal year, as planned. Over the first quarter of 2018 we continued the successful business development seen in prior quarters. With growth in all regions, each of our three business segments reported improved earnings,” says Dr. Stefan Traeger, President & CEO of JENOPTIK AG.
Revenue up by 16.0 percent, growth in all regions
Group revenue rose sharply to 189.9 million euros (prior year: 163.7 million euros). Growth was seen in the Optics & Life Science and Mobility segments thanks to continuing strong demand for optical systems for the semiconductor equipment industry and systems from the Healthcare & Industry area. Scheduled deliveries of toll monitoring pillars in the Traffic Solutions area also significantly contributed to revenue growth. This was reflected in particular in the increase in revenue in Germany. From a regional perspective, Jenoptik grew on all the international markets. Revenue in the two growth regions of the Americas and Asia/Pacific rose to 61.2 million euros (prior year: 56.6 million euros). In total, Jenoptik generated 67.8 percent abroad, once again more than two thirds of group revenue (prior year: 68.6 percent).
EBIT sharply up on the back of good business performance
Earnings before interest, taxes, depreciation and amortization (EBITDA) also increased by 55.9 percent to 27.7 million euros (prior year: 17.8 million euros). The EBITDA margin improved to 14.6 percent (prior year 10.9 percent). In the first three months of 2018, the operating result also outperformed the rise in revenue. At 20.8 million euros, EBIT was 88.7 percent up on the prior year (prior year: 11.0 million euros), with all three segments contributing to this growth. Higher revenue and significantly reduced administrative expenses were, among others, reasons for the noticeable improvement in earnings. In the prior year higher expenses in connection with the change on the Executive Board as well as unplanned development costs for the toll monitoring pillar affected the result. The EBIT margin improved from 6.7 to 11.0 percent.
Order intake lower than in prior year, solid order backlog and strong financial power
In the reporting period, the Jenoptik Group’s order intake, at 199.2 million euros, did not reach the high value seen in the prior year (prior year: 221.3 million euros), but exceeded the revenue of the quarter by 9.3 million euros. The book-to-bill ratio, that of order intake to revenue, came to 1.05, compared with 1.35 in the prior year. In the first quarter of 2017, Jenoptik had received several major contracts, particularly in the Defense & Civil Systems segment, which contributed to the sharp rise in order figures. At 453 million euros, the order backlog remained at the 2017 year-end level (31/12/2017: 453.5 million euros). There were also frame contracts (in part framework agreements with customers) worth 82.0 million euros (31/12/2017: 87.6 million euros).
Due to improved earnings and lower capital expenditure than in the prior year, the free cash flow rose to 13.3 million euros (prior year: 10.2 million euros).
Earnings up in all three segments
In the first three months of 2018, the Optics & Life Science segment generated revenue of 68.8 million euros, an increase of 16.6 percent (prior year: 59.0 million euros). This performance was driven by continuing strong demand for solutions for the semiconductor equipment industry and sales growth in the Healthcare & Industry area. Based on this good business development, EBIT improved significantly, by 45.1 percent to 14.1 million euros (prior year: 9.7 million euros). Over the three-month period, the segment thus increased its EBIT margin to 20.5 percent compared to the prior-year figure of 16.5 percent. The order intake grew by 12.9 percent to 87.1 million euros (prior year: 77.1 million euros). Set against revenue, this results in a book-to-bill ratio of 1.27 (prior year: 1.31). At the end of March 2018, the order backlog in the segment was worth 124.0 million euros (31/12/2017: 109.1 million euros).
In the first three months of 2018, revenue in the Mobility segment grew 31.9 percent on the prior-year quarter, to 72.3 million euros (prior year: million 54.8 million euros). Both areas, applications for the automotive industry and traffic safety technology, contributed to the successful performance. Scheduled deliveries of toll monitoring pillars significantly boosted growth. Due to the good development of revenue, the segment has now returned to stronger profitability, and posted EBIT of 6.1 million euros (prior year: 0.9 million euros). The EBIT margin consequently improved to 8.4 percent (prior year: 1.7 percent). As the order intake in the Mobility segment was below the level of revenue in the period covered by the report, the book-to-bill ratio reached a figure of 0.95 (prior year: 1.36). At 68.7 million euros, the order intake was down on the prior year predominantly due to the development in the Traffic Solutions area (prior year: 74.5 million euros). At the end of the first quarter, the order backlog was worth 140.7 million euros (31/12/2017: 144.7 million euros).
In the first three months, the Defense & Civil Systems segment generated revenue of 49.7 million euros, which as expected was at the prior-year level (prior year: 50.2 million euros). Despite this virtually unchanged revenue, EBIT rose slightly to 3.8 million euros (prior year: 3.2 million euros), primarily due to a more profitable product mix. The EBIT margin accordingly improved to 7.7 percent (prior year: 6.3 percent). At 44.1 million euros, the order intake was 36.8 percent lower than the prior-year figure of 69.8 million euros. Especially in the first quarter of 2017 Jenoptik had received several major orders. An improvement in the order intake is, however, expected in the further course of the year. The book-to-bill ratio fell to 0.89 from 1.39 in the prior year. The value of the order backlog consequently also declined, by 11.6 million euros to 191.0 million euros (31/12/2017: 202.6 million euros).
2018 guidance confirmed
Following the expected good business performance in the first quarter of 2018, the Executive Board has confirmed its guidance for the current fiscal year. Alongside a current high level of demand from the semiconductor equipment industry, deliveries of toll monitoring pillars will be made mainly in the first half-year 2018. For the full year, the Executive Board is therefore still expecting revenue growth to between 790 and 810 million euros. In fiscal year 2018 the EBIT margin is projected to be in a range between 10.5 to 11.0 percent, the EBITDA margin between 14.5 and 15.0 percent.
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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.
As globally operating technology group, Jenoptik is active in the three segments Optics & Life Science, Mobility and Defense & Civil Systems. Optical technologies are the very basis of our business with the majority of our products and services being provided to the photonics market. Our key markets primarily include the semiconductor equipment industry, the medical technology, automotive and mechanical engineering, traffic, aviation as well as the security and defense technology industries. Jenoptik has about 3,600 employees and generated revenue of approx. 748 million euros in 2017.