- Revenue rises 8.5 percent to 158.2 million euros
- Group EBIT improved by 11.7 percent to 9.8 million euros
- Further increase in cash flows and equity ratio
- Guidance for full year confirmed
“We made a successful start to the new year. In an environment characterized by economic uncertainty, we benefited from our interdisciplinary expertise and increasing internationalization, as well as from differing demand cycles. Our greater focus on megatrends and target markets, effective cost management and a solid financial footing will all continue to help us generate sustainably profitable growth,” said Jenoptik President & CEO Michael Mertin.
Revenue up 8.5 percent, disproportionate rise in group EBIT
In the first three months of 2016, Jenoptik’s revenue rose 8.5 percent to 158.2 million euros (prior year 145.8 million euros). This was also the highest revenue posted by the company for a first quarter in recent years. All of the Group’s segments saw growth, with noticeably strong demand from the defense technology, information and communications technology, semiconductor equipment and automotive markets. Revenue was boosted in Germany, Europe and Asia/Pacific.
At 9.8 million euros, the operating result (group EBIT) improved at a faster rate than revenue, by 11.7 percent (prior year 8.7 million euros) – essentially as a result of a better gross profit combined with lower functional costs. The EBIT margin in the first quarter increased from 6.0 percent in 2015 to 6.2 percent. Earnings before interest, taxes, depreciation and amortization (EBITDA) rose 5.2 percent to 16.7 million euros (prior year 15.8 million euros). The financial result, at minus 2.1 million euros, was below the prior-year figure (prior year 1.1 million euros), which was primarily driven by currency exchange rate gains from the valuation of financial assets. Due to the absence of currency effects and despite lower interest expenses in the reporting period the Group achieved earnings before tax of 7.7 million euros (prior year 9.8 million euros) and earnings after tax of 6.5 million euros (prior year 8.3 million euros).
At 158.4 million euros, the order intake remained 5.0 percent below the prior-year figure of 166.8 million euros in the first three months of 2016. In the prior year, this item had included a major order in the Defense & Civil Systems segment. The book-to-bill ratio was 1.00 (prior year 1.14). At 368.5 million euros, the order backlog was slightly below the figure at the end of 2015 (31/12/2015: 373.4 million euros). The Group also has contracts worth around 19.0 million euros.
As of March 31, 2016, the number of employees in the Jenoptik Group fell slightly to 3,492 (31/12/2015: 3,512 employees; 31/3/2015: 3,570 employees). Around 18 percent of the workforce is employed abroad.
Strong cash flows, equity base further improved
As of March 31, 2016, cash flows from operating activities came to 15.4 million euros, considerably above the prior year’s figure of minus 0.8 million euros. The free cash flow improved to 12.0 million euros (prior year minus 3.3 million euros). Cash inflow was mainly influenced by lower payments for working capital.
As a result of the improved cash flows, cash and cash equivalents including marketable securities increased to 94.1 million euros at the end of the first quarter (31/12/2015: 84.2 million euros). With unchanged financial liabilities, net debt fell further to 33.4 million euros as of March 31, 2016 (31/12/2015: 43.9 million euros).
At 57.2 percent, the equity ratio rose to a new record (31/12/2015: 56.6 percent). “With sufficient financial resources and healthy balance sheet ratios, we have created a positive starting point from which to finance our scheduled growth out of our own resources and continue the group development projects as planned. Beyond this, we are closely reviewing all options relating to value-adding acquisitions,” says CFO Hans-Dieter Schumacher.
Revenue growth in all segments
In the first quarter of 2016, the Optics & Life Science segment started off on a solid footing with revenue and earnings at prior-year levels together with a considerably improved order intake. At 52.2 million euros, revenue was 1.7 percent up on the prior year’s figure of 51.3 million euros. Income from operations (EBIT) was at the same level as in the prior year, at 5.2 million euros. The EBIT margin came to 10.0 percent (prior year 10.2 percent). An order intake worth 59.1 million euros was 20.3 percent higher than in the equivalent prior period (prior year 49.1 million euros). This encouraging growth predominantly originated in the Healthcare & Industry division. The order backlog as of the end of March 2016 was worth 75.7 million euros (31/12/2015: 73.7 million euros).
In the first three months of 2016, revenue in the Mobility segment was slightly up on the prior year, at 52.1 million euros (prior year 51.7 million euros). The Automotive division saw good growth. Due to lower functional costs, the segment’s EBIT improved by 7.9 percent to 2.3 million euros (prior year 2.1 million euros). At 4.4 percent, the EBIT margin was accordingly up on the prior-year figure of 4.1 percent. The order intake of 64.8 million euros (prior year 68.6 million euros) was at a similar high level to the prior-year period and exceeded the segment’s revenue in the quarter. At 104.6 million euros, the order backlog was 12.9 percent above the figure at the end of 2015 (31/12/2015: 92.7 million euros).
In the first three months, revenue in the Defense & Civil Systems segment came to 54.4 million euros, as anticipated 27.4 percent above the prior-year figure of 42.7 million euros. This development was predominantly due to a good start to the year in the areas of energy and sensor systems. The segment EBIT improved considerably from 0.8 million euros in the prior year to 3.2 million euros, primarily due to good revenue growth and a high-margin product mix. The order intake fell 25.8 percent to 37.6 million euros (prior year 50.7 million euros). In the prior year, this item had included a major order to equip the Patriot missile defense system. Overall, the segment’s order backlog fell by 17.0 million euros to 192.7 million euros (31/12/2015: 209.7 million euros), largely due to the execution of major long-term projects.
2016 guidance confirmed
Following good development of business as scheduled in the first quarter of 2016, the Jenoptik Executive Board has confirmed the guidance it published in March. For 2016, it expects group revenue of between 680 and 700 million euros. EBIT is anticipated to show a moderate rise and the EBIT margin is expected in the range of 9.0 and 9.5 percent. Earnings before tax shall develop similarly to EBIT. This presupposes that political and economic conditions do not worsen. Acquisitions are not included in this forecast but have not been ruled out for the current fiscal year.