Jenoptik Group reports an increase in orders, sales and results in 1st half-year. Forecast for 2010 has been raised
The Jenoptik Group posted an increase in orders, sales and results for the 1st half-year 2010. With sales at 239.6 million euros and therefore up slightly on the same period in the previous year (prev. year 231.3 million euros), Jenoptik achieved a Group EBIT of 10.5 million euros. In the 1st half-year of the previous year the Jenabased optoelectronics group had been forced to report an EBIT of minus 4.6 million euros, although this figure included 7.9 million euros in negative oneoff effects arising from the relinquishment of a business.
The positive development took place across all three of the Group's segments. In the 2nd quarter 2010 Jenoptik reported a Group EBIT of 6.4 million euros, an increase of more than 50 percent compared with the 1st quarter (4.0 million euros). In particular, after having reported five consecutive quarters of negative results, the Metrology segment achieved breakeven in the 2nd quarter 2010 and will once again be contributing a positive EBIT in the 2nd half-year. Jenoptik recorded overall earnings after tax of 3.5 million euros as at the end of 1st half-year compared with minus 11.1 million euros for the same period in the previous year.
"In the year just past we have made severe cutbacks and worked on our processes. With fewer employees and a slight increase in sales we are reporting another half-year result clearly in positive territory today," summarized Jenoptik Chairman Michael Mertin on Thursday, on the announcement of the figures for the half-year. Sales in the previous year included contributions in the middle single figure million euro range from businesses which were either closed or sold. In 2009, Jenoptik had continued to focus on its core business and implemented measures which were aimed at reducing costs. The main elements of the measures were the withdrawal from non-strategic areas of business, optimization of processes and locations, restructuring of parts of the production side as well as personnelrelated measures. As at the end of the 1st half-year 2010 Jenoptik had 3,069 employees (December 31, 2009: 3,268).
Sharp rise in order intakes.
There was also a marked increase in the order intake which rose by 37.6 percent to 300.2 million euros (prev. year 218.1 million euros). This was a reflection of the overall improvement in the economic situation, a continuing high demand from the semiconductor industry and a better than expected recovery in demand from the automotive industry. However, in some areas the cautious investment climate is continuing, in particular regarding new technologies. "In the area of plant engineering and industrial metrology we have not yet reached precrisis level", said the Jenoptik boss. In the 1st half-year 2010 Jenoptik had profited from important major orders, including the largest individual orders in the history of traffic safety systems and medical lasers, each worth more than 12 million euros, as well as an order for Eurofighter radomes for more than 20 million euros. In net terms the order intake exceeded the level of sales by approx. 60 million euros, resulting in the order backlog increasing to 398.4 million euros (December 31, 2009: 339.4 million euros).
Cash flow remains positive. Further reduction in net debt. Shareholders' equity ratio now 43.2 percent.
Despite an increase in the volume of business and the payments associated with the personnelrelated measures the Jenoptik Group generated a positive cash flow from operating business in the sum of 6.9 million euros (prev. year 12.5 million euros).
Following a significant reduction in net debt in the 2009 fiscal year from 191.6 million euros to 159.5 million euros, net debt was reduced further to 144.0 million euros in the 1st half-year 2010. The figure does not yet include the net cash inflow in the higher single million euro range following the successful closing of the sale of the caverion shares which will have a positive effect on net debt.
The 10 percent capital increase at the beginning of March this year, together with the profit for the half-year, led to the Group shareholders' equity rising to 265.6 million euros (December 31, 2009: 240.0 million euros). The shareholders' equity quota, the ratio between shareholders' equity and balance sheet total, improved from 39.5 percent at the end of 2009 to the new figure of 43.2 percent despite a slight increase in the balance sheet total to 614.5 million euros.
Information on the development in the three segments.
There was an improvement in the business climate for the Lasers & Optical Systems segment primarily as a result of the continuing high demand from the semiconductor industry. At 92.9 million euros, sales were up by 25.4 percent compared with the level in the previous year (prev. year 74.1 million euros). This and improved cost structures led to a rise in the segment EBIT to 7.2 million euros compared with minus 3.0 million euros for the same period in the previous year. However, the figure for the previous year also included negative oneoff effects in the sum of 7.9 million euros attributable to the withdrawal from a business. The order intake of the Lasers & Optical Systems segment increased by 33.1 percent to 106.6 million euros (prev. year 80.1 million euros) and therefore exceeded sales.
In the Metrology segment the pickup in demand from the automotive industry in particular in the 2nd quarter 2010 was stronger than had been expected. Significant major orders for traffic safety systems were also awarded in the 1st half-year, producing a sharp rise in the segment's order intake of 76.8 percent to 70.9 million euros (prev. year 40.1 million euros). By contrast, as expected, the segment reported a slight fall in sales to a total of 43.4 million euros (prev. year 48.0 million euros). This was due to a relatively good 1st quarter 2009 on the sales side in the Industrial Metrology division which at that time was still processing order backlogs from the period prior to the crisis in the automotive industry. The segment recorded a positive development in its EBIT at minus 1.0 million euros (prev. year minus 3.9 million euros), achieving breakeven in the 2nd quarter despite the fall in sales, after a loss of minus 1.0 million euros in the 1st quarter 2010. The cost reduction measures, particularly those in the Industrial Metrology division, had an impact on these figures.
With an order intake of more than 70 million euros in the 2nd quarter 2010 the Defense & Civil Systems segment can look back on the most successful period for nine quarters. In the 1st half-year 2010 the segment recorded an order intake totaling 121.80 million euros (prev. year 94.3 million euros). In this business, in which longterm contracts are a characteristic feature, the major order for Eurofighter radomes worth more than 20 million euros will impact on sales from the year 2012 and beyond. The segment posted half-year sales of 103.2 million euros, just below the figure for the same period in the previous year (prev. year 105.2 million euros). The segment EBIT, at 5.5 million euros, accordingly fell short of the level in the previous year (prev. year 6.9 million euros). In the 2nd quarter by contrast, the segment EBIT at 3.8 million euros was higher compared with both the same quarter in the previous year (2.4 million euros) and the 1st quarter 2010 (1.7 million euros). Sales and results in the 1st half-year 2009 were influenced by the delivery of a major order in the Sensor Systems business unit.
Forecast for the current fiscal year raised.
"We are seeing a continuing and sharp recovery in the semiconductor industry and a faster pickup in demand from the automotive industry than we had originally anticipated," said Michael Mertin, commenting on the overall positive economic conditions. These factors, together with the cost reduction measures whose impact will be take full effect in 2010, led to an increase in sales and earnings which is now ahead of the original expectations. For these reasons Jenoptik raised its forecast for the current fiscal year.
Sales for 2010 are forecast to be approx. 500 million euros (previously: 475 to 500 million euros). Jenoptik expects a Group EBIT of at least 25 million euros (previously between 15 and 25 million euros). The improvement in the EBIT will also be reflected in the positive net income. Increases in sales are expected in the Lasers & Optical Systems segment as the result of the continuing high demand from the semiconductor industry and medical technology. The Metrology segment is anticipated to report a slight rise in sales. The Metrology segment is expected to report a positive EBIT in the 2nd half-year 2010. The Defense & Civil Systems segment continues to report stable development.
The full half-year financial report will be available for downloading on the Internet from 09:00 am at www.jenoptik.com (Investor Relations / Reports & Presentations / Interim Reports)