The Jenoptik Group ended the 2010 fiscal year with a marked rise in sales and earnings. Group sales increased from 473.6 million euros to 510.6 million euros. The Group EBIT, including one-off effects, primarily resulting from the sale of Jena-Optronik GmbH, came in at 56.4 million euros, or 31.9 million euros in pure operating terms. In the previous year the Group had posted an EBIT of minus 19.6 million euros, although this had been influenced by restructuring costs. Earnings after tax totaled 36.4 million euros (prev. year minus 33.9 million euros), with earnings per share at 0.65 cents (prev. year minus 0.73 cents).
"There are essentially two reasons for the improvement in the earnings. On the one side we saw a continuing and rapid recovery in our two key target sectors, the semiconductor and automotive industries; on the other side, we benefitted from the effect of our cost reduction measures and the restructurings", said Dr. Michael Mertin, Chairman of the Executive Board of JENOPTIK AG.
Other contributory factors were the positive one-off effects arising from sales of shareholdings, primarily from the sale of Jena-Optronik GmbH. In addition to the positive cash flows resulting from consistent management of receivables and inventories, as well as the capital increase in March 2010, these sales contributed towards net debt being halved to 79.3 million euros (prev. year 159.5 million euros). "After also having successfully reduced net debt markedly in the crisis year 2009, this was an important step and outcome in the fiscal year just past", said Chief Financial Officer Frank Einhellinger.
The personnel measures implemented at the end of 2009 as well as the sale of Jena-Optronik (131 employees) led to a further reduction in the number of employees in 2010 down to 2,951 at the year end (31.12.2009: 3,268). We therefore met the growth in demand and a consequent rapid ramp-up of production in 2010 with more efficient structures.
Order intake up by nearly 35 percent on 2009.
The significant 34.6 percent growth in the order intake to 582.5 million euros (prev. year 432.8 million euros) was attributable to the economic recovery as well as to several large orders that Jenoptik won in 2010. These included an order for medical lasers from the USA, a major foreign order for traffic safety technology and in the Defense & Civil Systems division the order for the next tranche of the Eurofighter radome as well as the power supply systems for a missile defense system. Whilst the order for Traffic Solutions had already been accounted for in full in the 3rd quarter and therefore contributed to the growth in sales, the other major orders extend over several years and are included in the order backlog. This rose to 355.4 million euros (without Jena-Optronik) (31.12.2009: 304.0 million euros without Jena-Optronik, 339.4 million euros with Jena-Optronik).
Another positive cash flow in the double figure million euro range
The cash flow from operating activities totaled 43.7 million euros (prev. year 53.3 million euros) and therefore came in below the high figure for the previous year due to the payouts within the framework of the personnel measures in the 1st half-year 2010 and the marked growth in business. Once again all capital expenditure and interest payments were met out of the Group's own cash flow. The free cash flow was 32.9 million euros (prev. year 41.0 million euros).
At 15.4 million euros capital expenditure rose slightly by comparison with the previous year (prev. year 14.4 million euros). Amongst other things, investments were made in new machines for optics manufacturing at the Jena location and in the USA. In addition, as a result of the high demand for energy systems in the high output categories, work commenced on the construction of a new production hall for the Defense & Civil Systems division in the Bavarian town of Altenstadt; construction will be completed in 2011.
Information on the Jenoptik segments
The Lasers & Optical Systems segment reported a continuation of the high level of demand from the semiconductor industry which began in the 2nd half-year 2009. There was also an increase in demand for laser processing systems for the automotive industry in 2010. The Lasers business unit was also awarded a major order for approx. 12 million euros, the largest order in the medical technology area in the company's history. By contrast, the order intake from the photovoltaics industry was below expectations.
As such, the segment posted a 13.3 percent increase in sales to 188.9 million euros (prev. year 166.7 million euros). The segment EBIT increased from minus 16.5 million euros in the previous year (including one-off effects arising from restructuring) to 13.3 million euros, a significantly higher rate in proportion to sales. In addition to the high order intake the cost reduction and efficiency measures such as the reorganization of optics manufacturing at the Jena site contributed to this rise.
In 2010 the positive growth in demand was also clearly reflected in the order intake which increased by 35.7 percent to 230.2 million euros compared with the 168.4 million euros in the previous year, and therefore was also clearly above sales. The order backlog grew accordingly by 64.9 percent to 98.8 million euros.
The Metrology segment succeeded in achieving the turnaround in 2010. After a difficult 2009, particularly for the Industrial Metrology division, the segment reported positive sales, earnings and order intake in 2010. This was due to the rapid recovery in demand from the automotive industry as well as the effects of the restructuring measures which led to an improvement in the cost basis in 2010. The Traffic Solutions division won an important major order from abroad for approx. 12 million euros which was settled in full in the 3rd quarter.
This is reflected in the segment's sales and earnings, particularly in the 3rd quarter 2010, producing an excellent performance. On a full year basis the segment grew sales by 18.5 percent to 113.8 million euros (prev. year 96.0 million euros) and recorded an EBIT of 8.6 million euros compared with minus 14.6 million euros in the previous year (including one-off effects arising from restructuring). The order intake was also influenced by the major order for Traffic Solutions and the growing business with the automotive industry. It rose by 64.7 percent to 137.0 million euros (prev. year 83.2 million euros). The segment doubled the order intake to 45.1 million euros.
The Defense & Civil Systems segment achieved sales of 205.8 million euros, the same level as in the previous year (prev. year 205.3 million euros). As a result of the change in the sales mix compared with the previous year, the segment EBIT at 11.5 million euros did not quite reach the same level as in the previous year (prev. year 12.2 million euros). Jena-Optronik GmbH, which has since been sold, was part of the segment so its contributions to sales and earnings are still included in the figure in full up to November 30, 2010. After adjustment for these, the segment posted sales of 173.9 million euros and an EBIT of 8.6 million euros.
Long-term orders with long lead times are a characteristic feature of the business. In 2010 major orders were received from the USA for the supply of generators for the Patriot missile defense system totaling more than 16 million euros, as well as for Eurofighter radomes in the sum of approx. 20 million euros. The segment consequently posted a very positive overall performance in its order intake which rose by 18.9 percent to 211.6 million euros (prev. year 178.0 million euros). This figure includes the order intake of Jena-Optronik GmbH; after adjustment for this the segment recorded an order intake of 163.7 million euros. The order backlog as at December 31, 2010 is already shown excluding Jena-Optronik GmbH and reached 212.6 million euros (prev. year 260.2 million euros or without Jena-Optronik 224.8 million euros).
Outlook for the current 2011 fiscal year: Increase in sales and disproportionate improvement in earnings
Jenoptik reaffirms the forecast issued in February 2011. Jenoptik is expected to continue its positive development in the current 2011 fiscal year. Sales should come in at a minimum of 510 million euros, the Group EBIT is anticipated to increase by at least 20 percent to more than 35 million euros. The forecasts are based on the figures adjusted for Jena-Optronik GmbH - sales of 478.8 million euros and Group EBIT of 29.0 million euros.
The Lasers & Optical Systems segment plans to grow sales to more than 195 million euros compared with 188.9 million euros in 2010. Jenoptik expects the high level of demand from the semiconductor industry to continue in the 1st half-year 2011. The Optical Systems division is continuing to work on establishing itself as a systems partner. Sales in the Metrology segment should increase to more than 120 million euros (2010: 113.8 million euros). This assumes a continuation of the recovery in the automotive market and at least one major international order for traffic safety systems. In the Defense & Civil Systems segment sales are expected to continue developing on a stable basis. Reductions in the defense budgets in Germany and other, primarily European, countries are expected to be offset over the medium to long-term by an increase in civil and foreign business.
As a result of the events in Japan and the political upheavals in the Arab world it is currently difficult to forecast what will happen with global economic development as well as the development of our target sectors. Jenoptik has had a presence in Japan for several years with its partner Kantum Electronics. Since the end of 2010 Jenoptik has had a majority shareholding in Yokohama with ten employees who are primarily marketing products of the Lasers & Material Processing division. All employees are well given the circumstances. In the 2010 fiscal year Jenoptik generated approx. 5 million euros and therefore approx. 1 percent of sales in Japan. How the situation will continue to develop in the world's markets will be seen over the months ahead.
"There are essentially two reasons for the improvement in the earnings. On the one side we saw a continuing and rapid recovery in our two key target sectors, the semiconductor and automotive industries; on the other side, we benefitted from the effect of our cost reduction measures and the restructurings", said Dr. Michael Mertin, Chairman of the Executive Board of JENOPTIK AG.
Other contributory factors were the positive one-off effects arising from sales of shareholdings, primarily from the sale of Jena-Optronik GmbH. In addition to the positive cash flows resulting from consistent management of receivables and inventories, as well as the capital increase in March 2010, these sales contributed towards net debt being halved to 79.3 million euros (prev. year 159.5 million euros). "After also having successfully reduced net debt markedly in the crisis year 2009, this was an important step and outcome in the fiscal year just past", said Chief Financial Officer Frank Einhellinger.
The personnel measures implemented at the end of 2009 as well as the sale of Jena-Optronik (131 employees) led to a further reduction in the number of employees in 2010 down to 2,951 at the year end (31.12.2009: 3,268). We therefore met the growth in demand and a consequent rapid ramp-up of production in 2010 with more efficient structures.
Order intake up by nearly 35 percent on 2009.
The significant 34.6 percent growth in the order intake to 582.5 million euros (prev. year 432.8 million euros) was attributable to the economic recovery as well as to several large orders that Jenoptik won in 2010. These included an order for medical lasers from the USA, a major foreign order for traffic safety technology and in the Defense & Civil Systems division the order for the next tranche of the Eurofighter radome as well as the power supply systems for a missile defense system. Whilst the order for Traffic Solutions had already been accounted for in full in the 3rd quarter and therefore contributed to the growth in sales, the other major orders extend over several years and are included in the order backlog. This rose to 355.4 million euros (without Jena-Optronik) (31.12.2009: 304.0 million euros without Jena-Optronik, 339.4 million euros with Jena-Optronik).
Another positive cash flow in the double figure million euro range
The cash flow from operating activities totaled 43.7 million euros (prev. year 53.3 million euros) and therefore came in below the high figure for the previous year due to the payouts within the framework of the personnel measures in the 1st half-year 2010 and the marked growth in business. Once again all capital expenditure and interest payments were met out of the Group's own cash flow. The free cash flow was 32.9 million euros (prev. year 41.0 million euros).
At 15.4 million euros capital expenditure rose slightly by comparison with the previous year (prev. year 14.4 million euros). Amongst other things, investments were made in new machines for optics manufacturing at the Jena location and in the USA. In addition, as a result of the high demand for energy systems in the high output categories, work commenced on the construction of a new production hall for the Defense & Civil Systems division in the Bavarian town of Altenstadt; construction will be completed in 2011.
Information on the Jenoptik segments
The Lasers & Optical Systems segment reported a continuation of the high level of demand from the semiconductor industry which began in the 2nd half-year 2009. There was also an increase in demand for laser processing systems for the automotive industry in 2010. The Lasers business unit was also awarded a major order for approx. 12 million euros, the largest order in the medical technology area in the company's history. By contrast, the order intake from the photovoltaics industry was below expectations.
As such, the segment posted a 13.3 percent increase in sales to 188.9 million euros (prev. year 166.7 million euros). The segment EBIT increased from minus 16.5 million euros in the previous year (including one-off effects arising from restructuring) to 13.3 million euros, a significantly higher rate in proportion to sales. In addition to the high order intake the cost reduction and efficiency measures such as the reorganization of optics manufacturing at the Jena site contributed to this rise.
In 2010 the positive growth in demand was also clearly reflected in the order intake which increased by 35.7 percent to 230.2 million euros compared with the 168.4 million euros in the previous year, and therefore was also clearly above sales. The order backlog grew accordingly by 64.9 percent to 98.8 million euros.
The Metrology segment succeeded in achieving the turnaround in 2010. After a difficult 2009, particularly for the Industrial Metrology division, the segment reported positive sales, earnings and order intake in 2010. This was due to the rapid recovery in demand from the automotive industry as well as the effects of the restructuring measures which led to an improvement in the cost basis in 2010. The Traffic Solutions division won an important major order from abroad for approx. 12 million euros which was settled in full in the 3rd quarter.
This is reflected in the segment's sales and earnings, particularly in the 3rd quarter 2010, producing an excellent performance. On a full year basis the segment grew sales by 18.5 percent to 113.8 million euros (prev. year 96.0 million euros) and recorded an EBIT of 8.6 million euros compared with minus 14.6 million euros in the previous year (including one-off effects arising from restructuring). The order intake was also influenced by the major order for Traffic Solutions and the growing business with the automotive industry. It rose by 64.7 percent to 137.0 million euros (prev. year 83.2 million euros). The segment doubled the order intake to 45.1 million euros.
The Defense & Civil Systems segment achieved sales of 205.8 million euros, the same level as in the previous year (prev. year 205.3 million euros). As a result of the change in the sales mix compared with the previous year, the segment EBIT at 11.5 million euros did not quite reach the same level as in the previous year (prev. year 12.2 million euros). Jena-Optronik GmbH, which has since been sold, was part of the segment so its contributions to sales and earnings are still included in the figure in full up to November 30, 2010. After adjustment for these, the segment posted sales of 173.9 million euros and an EBIT of 8.6 million euros.
Long-term orders with long lead times are a characteristic feature of the business. In 2010 major orders were received from the USA for the supply of generators for the Patriot missile defense system totaling more than 16 million euros, as well as for Eurofighter radomes in the sum of approx. 20 million euros. The segment consequently posted a very positive overall performance in its order intake which rose by 18.9 percent to 211.6 million euros (prev. year 178.0 million euros). This figure includes the order intake of Jena-Optronik GmbH; after adjustment for this the segment recorded an order intake of 163.7 million euros. The order backlog as at December 31, 2010 is already shown excluding Jena-Optronik GmbH and reached 212.6 million euros (prev. year 260.2 million euros or without Jena-Optronik 224.8 million euros).
Outlook for the current 2011 fiscal year: Increase in sales and disproportionate improvement in earnings
Jenoptik reaffirms the forecast issued in February 2011. Jenoptik is expected to continue its positive development in the current 2011 fiscal year. Sales should come in at a minimum of 510 million euros, the Group EBIT is anticipated to increase by at least 20 percent to more than 35 million euros. The forecasts are based on the figures adjusted for Jena-Optronik GmbH - sales of 478.8 million euros and Group EBIT of 29.0 million euros.
The Lasers & Optical Systems segment plans to grow sales to more than 195 million euros compared with 188.9 million euros in 2010. Jenoptik expects the high level of demand from the semiconductor industry to continue in the 1st half-year 2011. The Optical Systems division is continuing to work on establishing itself as a systems partner. Sales in the Metrology segment should increase to more than 120 million euros (2010: 113.8 million euros). This assumes a continuation of the recovery in the automotive market and at least one major international order for traffic safety systems. In the Defense & Civil Systems segment sales are expected to continue developing on a stable basis. Reductions in the defense budgets in Germany and other, primarily European, countries are expected to be offset over the medium to long-term by an increase in civil and foreign business.
As a result of the events in Japan and the political upheavals in the Arab world it is currently difficult to forecast what will happen with global economic development as well as the development of our target sectors. Jenoptik has had a presence in Japan for several years with its partner Kantum Electronics. Since the end of 2010 Jenoptik has had a majority shareholding in Yokohama with ten employees who are primarily marketing products of the Lasers & Material Processing division. All employees are well given the circumstances. In the 2010 fiscal year Jenoptik generated approx. 5 million euros and therefore approx. 1 percent of sales in Japan. How the situation will continue to develop in the world's markets will be seen over the months ahead.
