The Jenoptik Group posted record results for the 1st half-year 2011. In addition to high sales and order intake levels as the result of a good economic performance, it achieved a marked improvement particularly in the quality of earnings.
With sales of 256.3 million euros (prev. year 221.3 million euros) the optoelectronics group recorded a group operating result of 24.0 million euros (prev. year 8.9 million euros), corresponding to an EBIT margin of 9.4 percent. "We have demonstrated once again that we are able to reach our profitability targets", said Jenoptik Chairman Michael Mertin in summarizing the 1st half-year 2011. The organic growth was also achieved thanks particularly to a high level of demand. The semiconductor and automotive industries in particular reported a positive development in the 1st half-year 2011. Earnings after tax totaled 14.5 million euros (prev. year 2.0 million euros). The disproportionate improvement in earnings is primarily attributable to more efficient structures, improved procurement processes in connection with the Jenoptik Excellence Program, higher capacity utilization and a good product mix. At the end of June the Group employed a total of 2,975 personnel.
Chairman of the Jenoptik Executive Board, Dr. Michael Mertin: "Our products are in international demand. Our sales growth was generated mainly outside Germany." The Asian region is gaining more and more importance. By comparison with the same period in the previous year, sales in the South East Asia/Pacific region increased by 32.2 percent to 24.5 million euros, accounting for nearly 10 percent of the total sales. Jenoptik has continuously been expanding its business also in North America since 2009. "Although these are good results we still see enormous sales potential abroad and we are continuing to work on the expansion of our local presence" said the Jenoptik Chairman on Thursday, August 11, in Jena at the announcement of the half-year results.
The order situation continued its positive trend, with Jenoptik successfully increasing its order intake by nearly 30 percent to 346.1 million euros (prev. year 266.7 million euros). The high order intake therefore once again exceeded the sales volume for the accounting period, with the order backlog now having risen to 438.6 million euros (31.12.2010: 355.4 million euros). All three segments succeeded in increasing their order intakes. Jenoptik was also awarded important major projects that will have an additional positive impact on the order intake and backlog. In the 2nd quarter these included the major order for the Traffic Solutions division from Saudi Arabia worth more than 20 million euros, as well as the partial order for the PUMA armored fighting vehicle for approx. 40 million euros in the 1st quarter 2011 in the Defense & Civil Systems division.
Sound financial situation: Jenoptik once again generated positive cash flows inspite of business expansion, the shareholders' equity ratio is now 47 percent.
At 24.5 million euros the cash flow from operating activities was significantly above the figure for the previous year (prev. year 6.9 million euros). On the operational side this is attributable to a marked improvement in earnings before tax.
Following a sharp reduction in net debt in the 4th quarter 2010 (31.12.2010: 79.3 million euros) and a further reduction in the 1st quarter 2011 (31.03.2011: 73.5 million euros), net debt increased slightly to 86.7 million euros as at the end of the 2nd quarter 2011. The rise was attributable to the previously announced payment to a silent real estate investor in connection with a real estate fund, as well as increased capital expenditure and working capital requirements resulting from the expansion of business.
The profit reported in the 1st half-year 2011 prompted a rise in the shareholders' equity to 296.5 million euros (31.12.2010: 282.5 million euros). Despite the increased balance sheet total this also produced an improvement in the shareholders' equity quota, the ratio between shareholders' equity and balance sheet total, from 44.9 percent at the end of 2010 to the new figure of 47.0 percent. "With lower debt ratios (e.g. net debt to EBITDA) and a higher shareholders' equity ratio we have succeeded in achieving a further significant improvement in important financial key indicators and our financial situation is sound. Net debt remained at a low level - despite the above mentioned payment, capital expenditure and the expansion of the business" said CFO Frank Einhellinger in summarizing the Group's development.
Information on the Jenoptik Group's three segments.
The Lasers & Optical Systems segment continued its positive performance in the 1st half-year 2011. Sales came in at 108.8 million euros (prev. year 92.9 million euros), representing a 17.1 percent growth. The Optical Systems division continued to benefit from good sales with the semiconductor industry, whilst in the Lasers & Material Processing division there was a positive performance in particular by medical and diode lasers as well as the Laser Processing Systems business unit. At 17.5 million euros, earnings from operating activities (segment EBIT) reported a marked improvement in proportion to the growth in sales (prev. year 7.2 million euros). The significant leap in earnings was due mainly to the rise in sales but was also attributable to improved cost structures. The segment posted an 11.3 percent increase in its order intake to 118.6 million euros (prev. year 106.6 million euros) and once again exceeded the high sales volume.
The Metrology segment recorded the highest growth rates amongst the segments in the 1st half-year 2011. The rapid recovery in demand from the automotive industry was reflected in the sales and segment EBIT of the Industrial Metrology division. Sales rose by 43.1 percent to 62.1 million euros (prev. year 43.4 million euros) and were primarily due to the Industrial Metrology division. The segment EBIT increased to 4.1 million euros compared with minus 1.0 million euros for the same period in the previous year. Both the growth in sales as well as improved cost structures contributed towards this result. The order intake was 95.3 million euros, 34.4 percent above the same period in the previous year (prev. year 70.9 million euros) and sharply higher than sales. The figure includes the major order for the Traffic Solutions division which will be supplying systems and equipment for traffic monitoring to the Kingdom of Saudi Arabia to the value of more than 20 million euros. The order intake for the same period in the previous year also included a major international order worth more than 12 million euros that had already been fully accounted for in the 2nd half-year 2010. The Industrial Metrology division reported a record order intake.
The Defense & Civil Systems segment continued its stable development. Its business is oriented towards the long term. This was illustrated in the 1st half-year by the large partial order for the new PUMA armored fighting vehicle for the German Army, together with additional large and long-term orders for systems and components for both military as well as civil applications. At the end of the 1st half-year 2011, sales at 84.7 million euros were at the same level as in the previous year (prev. year 84.9 million euros). At 3.5 million euros, the segment EBIT did, however, not quite reach the level for the previous year as a result of a change in the sales mix (prev. year 4.0 million euros). The high order intake at 133.2 million euros (prev. year 88.3 million euros) was influenced by several large orders, including the PUMA partial order worth nearly 40 million euros.
Outlook for the full year 2011. Sales and Group EBIT forecasts are confirmed.
Sales are expected to exceed 510 million euros (prev. year 479 million euros excluding Optronik), the Group EBIT to amount to 40 million euros. The Group EBIT excluding Jena Optronik in the sum of 29.0 million euros provides the comparison basis for the 2010 fiscal year. In May 2011, Jenoptik had already increased its original earnings forecast issued in March 2011 from 35 to 40 million euros as a result of a very good 1st quarter 2011. All three segments are expected to contribute towards the improvement in earnings.
"We are currently at a very high level, particularly in the Lasers & Optical Systems segment, so we do not wish to extrapolate the good performance in the 1st half-year on a one-to-one basis for the full year" said Dr. Michael Mertin, commenting on the Group forecasts. Jenoptik reaffirms its medium-term targets. "We are keeping to our sales and profitability targets" stated the Jenoptik Chairman. The aim was not growth at any price but achieving a sustainable and profitable development of the Group.
With sales of 256.3 million euros (prev. year 221.3 million euros) the optoelectronics group recorded a group operating result of 24.0 million euros (prev. year 8.9 million euros), corresponding to an EBIT margin of 9.4 percent. "We have demonstrated once again that we are able to reach our profitability targets", said Jenoptik Chairman Michael Mertin in summarizing the 1st half-year 2011. The organic growth was also achieved thanks particularly to a high level of demand. The semiconductor and automotive industries in particular reported a positive development in the 1st half-year 2011. Earnings after tax totaled 14.5 million euros (prev. year 2.0 million euros). The disproportionate improvement in earnings is primarily attributable to more efficient structures, improved procurement processes in connection with the Jenoptik Excellence Program, higher capacity utilization and a good product mix. At the end of June the Group employed a total of 2,975 personnel.
Chairman of the Jenoptik Executive Board, Dr. Michael Mertin: "Our products are in international demand. Our sales growth was generated mainly outside Germany." The Asian region is gaining more and more importance. By comparison with the same period in the previous year, sales in the South East Asia/Pacific region increased by 32.2 percent to 24.5 million euros, accounting for nearly 10 percent of the total sales. Jenoptik has continuously been expanding its business also in North America since 2009. "Although these are good results we still see enormous sales potential abroad and we are continuing to work on the expansion of our local presence" said the Jenoptik Chairman on Thursday, August 11, in Jena at the announcement of the half-year results.
The order situation continued its positive trend, with Jenoptik successfully increasing its order intake by nearly 30 percent to 346.1 million euros (prev. year 266.7 million euros). The high order intake therefore once again exceeded the sales volume for the accounting period, with the order backlog now having risen to 438.6 million euros (31.12.2010: 355.4 million euros). All three segments succeeded in increasing their order intakes. Jenoptik was also awarded important major projects that will have an additional positive impact on the order intake and backlog. In the 2nd quarter these included the major order for the Traffic Solutions division from Saudi Arabia worth more than 20 million euros, as well as the partial order for the PUMA armored fighting vehicle for approx. 40 million euros in the 1st quarter 2011 in the Defense & Civil Systems division.
Sound financial situation: Jenoptik once again generated positive cash flows inspite of business expansion, the shareholders' equity ratio is now 47 percent.
At 24.5 million euros the cash flow from operating activities was significantly above the figure for the previous year (prev. year 6.9 million euros). On the operational side this is attributable to a marked improvement in earnings before tax.
Following a sharp reduction in net debt in the 4th quarter 2010 (31.12.2010: 79.3 million euros) and a further reduction in the 1st quarter 2011 (31.03.2011: 73.5 million euros), net debt increased slightly to 86.7 million euros as at the end of the 2nd quarter 2011. The rise was attributable to the previously announced payment to a silent real estate investor in connection with a real estate fund, as well as increased capital expenditure and working capital requirements resulting from the expansion of business.
The profit reported in the 1st half-year 2011 prompted a rise in the shareholders' equity to 296.5 million euros (31.12.2010: 282.5 million euros). Despite the increased balance sheet total this also produced an improvement in the shareholders' equity quota, the ratio between shareholders' equity and balance sheet total, from 44.9 percent at the end of 2010 to the new figure of 47.0 percent. "With lower debt ratios (e.g. net debt to EBITDA) and a higher shareholders' equity ratio we have succeeded in achieving a further significant improvement in important financial key indicators and our financial situation is sound. Net debt remained at a low level - despite the above mentioned payment, capital expenditure and the expansion of the business" said CFO Frank Einhellinger in summarizing the Group's development.
Information on the Jenoptik Group's three segments.
The Lasers & Optical Systems segment continued its positive performance in the 1st half-year 2011. Sales came in at 108.8 million euros (prev. year 92.9 million euros), representing a 17.1 percent growth. The Optical Systems division continued to benefit from good sales with the semiconductor industry, whilst in the Lasers & Material Processing division there was a positive performance in particular by medical and diode lasers as well as the Laser Processing Systems business unit. At 17.5 million euros, earnings from operating activities (segment EBIT) reported a marked improvement in proportion to the growth in sales (prev. year 7.2 million euros). The significant leap in earnings was due mainly to the rise in sales but was also attributable to improved cost structures. The segment posted an 11.3 percent increase in its order intake to 118.6 million euros (prev. year 106.6 million euros) and once again exceeded the high sales volume.
The Metrology segment recorded the highest growth rates amongst the segments in the 1st half-year 2011. The rapid recovery in demand from the automotive industry was reflected in the sales and segment EBIT of the Industrial Metrology division. Sales rose by 43.1 percent to 62.1 million euros (prev. year 43.4 million euros) and were primarily due to the Industrial Metrology division. The segment EBIT increased to 4.1 million euros compared with minus 1.0 million euros for the same period in the previous year. Both the growth in sales as well as improved cost structures contributed towards this result. The order intake was 95.3 million euros, 34.4 percent above the same period in the previous year (prev. year 70.9 million euros) and sharply higher than sales. The figure includes the major order for the Traffic Solutions division which will be supplying systems and equipment for traffic monitoring to the Kingdom of Saudi Arabia to the value of more than 20 million euros. The order intake for the same period in the previous year also included a major international order worth more than 12 million euros that had already been fully accounted for in the 2nd half-year 2010. The Industrial Metrology division reported a record order intake.
The Defense & Civil Systems segment continued its stable development. Its business is oriented towards the long term. This was illustrated in the 1st half-year by the large partial order for the new PUMA armored fighting vehicle for the German Army, together with additional large and long-term orders for systems and components for both military as well as civil applications. At the end of the 1st half-year 2011, sales at 84.7 million euros were at the same level as in the previous year (prev. year 84.9 million euros). At 3.5 million euros, the segment EBIT did, however, not quite reach the level for the previous year as a result of a change in the sales mix (prev. year 4.0 million euros). The high order intake at 133.2 million euros (prev. year 88.3 million euros) was influenced by several large orders, including the PUMA partial order worth nearly 40 million euros.
Outlook for the full year 2011. Sales and Group EBIT forecasts are confirmed.
Sales are expected to exceed 510 million euros (prev. year 479 million euros excluding Optronik), the Group EBIT to amount to 40 million euros. The Group EBIT excluding Jena Optronik in the sum of 29.0 million euros provides the comparison basis for the 2010 fiscal year. In May 2011, Jenoptik had already increased its original earnings forecast issued in March 2011 from 35 to 40 million euros as a result of a very good 1st quarter 2011. All three segments are expected to contribute towards the improvement in earnings.
"We are currently at a very high level, particularly in the Lasers & Optical Systems segment, so we do not wish to extrapolate the good performance in the 1st half-year on a one-to-one basis for the full year" said Dr. Michael Mertin, commenting on the Group forecasts. Jenoptik reaffirms its medium-term targets. "We are keeping to our sales and profitability targets" stated the Jenoptik Chairman. The aim was not growth at any price but achieving a sustainable and profitable development of the Group.
