The Jenoptik Group posted a marked leap in earnings for fiscal year
2011. Sales increased by 13.5 percent to 543.3 million euros. Earnings
after tax reached a record 34.1 million euros. Jenoptik shareholders
are to be paid a dividend.
"We have kept our word", said Jenoptik Chairman Dr. Michael Mertin. The
sharp rise in profitability was the result of the work over recent
years. "At the same time, we have restructured our corporate financing,
which gives us certainty for the future." With these words, the
Jenoptik Chairman thanked Chief Financial Officer Frank Einhellinger at
the occasion of publishing the financial statements in Jena on Friday.
The CFO will leave Jenoptik in June this year and hand over to
Rüdiger Andreas Günther on April 1. "After a challenging
period involving the realignment of the whole company from the
operational and financing aspects, I am leaving Jenoptik after one of
its most successful fiscal years. This is a good time to take up new
career challenges. I would like to express my thanks for the confidence
placed in me by the employees and partners who have supported me in my
professional career", said Frank Einhellinger.
Sales, earnings and order intake rose in the double figure percentage range in 2011In 2011, the Jenoptik Group posted organic sales growth of 13.5 percent
to 543.3 million euros (prev. year 478.8 million euros). All three
segments contributed to this, with the Metrology segment showing the
biggest rise in sales of 23.1 percent. This also resulted in a
corresponding change in the sector mix. The automotive/machine
construction sectors accounted for nearly 30 percent of Jenoptik's
total sales, pushing security and defense technology off the top spot.
Once again Jenoptik generated nearly 60 percent of its sales abroad. In
the growth region of Asia, it achieved a marked, disproportionately
high increase, with sales up by 55.1 percent; by now, 1 in every 10
euros is generated in Asia. Sales in the NAFTA region also increased at
a disproportionately high rate of around 20 percent in dollar terms.
"The growth in sales in these two key regions testifies to the success
of our internationalization strategy which we have been pursuing over
the last two years", said Michael Mertin. One example of this is the
establishment of Jenoptik Shanghai by the Group in late 2011, combining
all activities on the Chinese market. This was preceded by the
formation or expansion of the Group's own presence in Korea and Japan
as well as of the defense business in the USA.
Payment of a dividend proposedThe group operating result rose by nearly 70 percent to 49.2 million
euros, a record in the company's more recent history (prev. year 29.0
million euros). As a consequence, Jenoptik posted an EBIT margin of
more than 9 percent for the full fiscal year 2011, the figure coming in
at 9.1 percent. All three segments increased their EBIT at a higher
rate compared with the respective increase in sales. More efficient
cost structures in all the Group's operating areas, together with the
higher sales and resultant economies of scale, all contributed towards
the leap in earnings.
At minus 14.2 million euros, the financial result was at approximately
the same level as in the previous year. "Lower interest expenses due to
the Group's refinancing at favorable terms through debenture loans will
not have a positive impact on the financial result until the current
fiscal year", explained CFO Frank Einhellinger. Income taxes totaled
4.4 million euros (95 percent of these being incurred in Germany), with
non-cash effective deferred tax earnings in the sum of 3.5 million
euros being simultaneously achieved. The earnings after tax were
therefore 34.1 million euros (prev. year 9.0 million euros).
The Executive and Supervisory Boards of JENOPTIK AG will propose to pay
a dividend of 0.15 euros per share to the Annual General Meeting which
will take place in Weimar in June. "As promised we have restored
Jenoptik's ability to pay a dividend. With the payment we prove that
Jenoptik has become a company which combines growth and financial
stability", said Michael Mertin. At the same time, the Jenoptik
Chairman referred to the need for a sound financial footing,
particularly as a technology-based company. How important this is was
demonstrated by the financial and economic crisis in 2009/2010.
The order intake reached 647.9 million euros (prev. year 534.6 million
euros), the highest level in recent years. The overall increase of 21.2
percent was primarily attributable to the Defense & Civil Systems
and Metrology segments, who won a number of major orders. The order
backlog of the Jenoptik Group also increased accordingly by around 90
million euros to 448.5 million euros (31.12.2010: 355.4 million euros).
Number of employees increased at the Jena site and abroadThe rise in sales and continuing good order book situation led to an
increase in the number of employees, taking the figure to 3,117
(31.12.2010: 2,951). New employees were recruited primarily in the
Lasers & Optical Systems and Metrology segments. The number of
Jenoptik employees abroad also increased to the new figure of nearly
400, a rise to approx. 13 percent of the total number of employees.
Positive performance by the financial and balance sheet indicatorsDespite increased capital expenditure and payments to a silent real
estate investor, Jenoptik generated a free cash flow of 44.0 million
euros in 2011, up sharply on the previous year (prev. year 31.6 million
euros). "We have therefore secured the investment needed for the
expansion of our business and achieved another small reduction in net
debt", said Frank Einhellinger. Following the sharp reduction in 2009
and 2010, net debt fell slightly further to 77.1 million euros.
At 25.1 million euros, capital expenditure in 2011 was significantly
higher than in the previous year (prev. year 14.5 million euros). The
key projects were the continued optimization of production systems for
higher output energy systems at the Altenstadt site in Bavaria, as well
as the start of construction to expand the production of base materials
for high-power diode lasers at the Berlin site.
The Group's financing has been secured through the debenture loans in
the sum of 90 million euros. These were placed at favorable terms with
a final maturity of five resp. seven years; as such they do not require
any repayments during the term. "We utilized the money to repay loans,
in particular the loan covered by a federal-state guarantee. This was
particularly important for us. We would like to express our thanks for
the confidence which the politicians have shown in our development"
said CFO Frank Einhellinger.
Information on the Jenoptik Group segmentsThe Lasers & Optical Systems segment posted a high growth as a
result of the high level of demand from the semiconductor industry.
Sales were up by 14.9 percent to 217.1 million euros (prev. year 188.9
million euros). The Lasers & Material Processing segment increased
sales of semiconductor lasers, lasers for medical technology as well as
laser processing systems, primarily for the automotive industry and for
processing of thin-films in the photovoltaics industry or related
areas. The segment achieved a record EBIT of 29.2 million euros (prev.
year 13.3 million euros). The 119.5 percent leap in earnings also came
from both operating business units, once again with Optical Systems
making the biggest contribution. This was due mainly to the expansion
of the systems business, which now has a significantly greater share of
the business. The improvement and cost saving measures, which were
introduced in 2009 and have been pursued continually since then, also
had an impact on the results. At 224.4 million euros the order intake
was down slightly on the high level in the previous year (prev. year
230.2 million euros) but just ahead of sales. As expected, the strong
demand from the semiconductor industry eased during the 2nd half-year
2011. The order backlog, at 101.3 million euros, was up slightly on the
figure for the previous year (31.12.2010: 98.8 million euros).
The Metrology segment posted record results. Sales increased to 140.1
million euros in 2011 (prev. year 113.8 million euros). The 23.1
percent growth came from Industrial Metrology thanks to strong demand
from the automotive industry. In addition, the sales figure includes
the first contributions from the major Saudi Arabian project of Traffic
Solutions. The segment EBIT, up by 39.5 percent, increased at a
stronger rate than sales, reaching 12.0 million euros (prev. year 8.6
million euros). This was attributable to the growth in sales and more
efficient structures. The order intake rose by 21.7 percent to 166.7
million euros (prev. year 137.0 million euros). This figure includes
the major traffic safety order from Saudi Arabia worth more than 20
million euros. The order intake exceeded sales so the order backlog
increased by 53 percent to 69.0 million euros (31.12.2010: 45.1 million
euros). In the current fiscal year, the segment won another major order
in the traffic safety area worth more than 40 million euros for traffic
safety systems from Malaysia.
The Defense & Civil Systems segment achieved record orders which
included several major, long-term orders that will contribute to sales
over the years ahead. In the fiscal year just past, sales totaled 183.3
million euros (prev. year 173.9 million euros). The small rise in sales
is primarily attributable to the growth in sales in the aviation and
energy systems areas. The segment EBIT totaled 11.6 million euros
(prev. year 8.6 million euros). The main contributors to the growth in
earnings were the Altenstadt site which produces higher output energy
systems, as well as the joint venture Hillos in Jena which manufactures
laser range-finder equipment for applications in the construction
industry and 50 percent of which is included in the results on a
proportional basis. The order backlog totaled 254.5 million euros
(prev. year 163.7 million euros), representing an increase of 55.5
percent. This figure includes several major orders that will not be
repeated each year. They include large orders for the new PUMA infantry
fighting vehicle for the Germany Army as well as additional major
orders from the US Government to supply generators for the Patriot air
defense missile system. The order backlog increased accordingly by 31.7
percent to 279.9 million euros (prev. year 212.6 million euros).
Outlook for the current fiscal year 2012: remaining cautiously optimistic"Our innovative products in high-tech markets, a growing systems
business, strong international presence and efficient internal
structures provide us with good opportunities to expand our position as
a global player in optoelectronics", summarized Michael Mertin. "Our
performance testifies to the confidence our customers place in us, an
increasing number of which include large corporations and global
leaders." At the same time, he emphasized that risks to the economic
development remain for the current fiscal year, primarily as a result
of the sovereign debt and currency situation. "We stand by our cautious
optimism that we expressed in February. We are seeing a stable order
intake in the 1st quarter 2012. The year has got off to a good start
and we expect a successful first quarter", said the Jenoptik Chairman.
For the full year 2012, the Jenoptik Group anticipates a slight organic
sales growth of 2 to 6 percent compared with 2011. The other two
segments should more than compensate for the anticipated reduction in
sales in the Laser & Optical Systems segment as a result of the
expected reduction in demand from the semiconductor industry. The Group
EBIT in 2012 is once again expected to exceed the 40 million euro mark
and come in at between 40 and 50 million euros depending upon the
course of the cycle in the semiconductor industry. Following the debt
reorganization and restructuring of the Group financing in 2011, the
Jenoptik Group also expects a marked improvement in the net interest
result due to lower interest expenses with a positive impact on the
earnings before tax.
More information at
www.jenoptik.com/
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