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News Release from: Jenoptik
Edited by the Manufacturingtalk Editorial
Team on 29 August 2003
Strong rise recorded in order intake
Over the first six months of 2003, the Jenoptik Group was able to surpass its sales, order intake and order backlog figures for the first half of 2002.
Over the first six months of 2003, the Jenoptik Group was able to surpass its sales, order intake and order backlog figures for the first half of 2002 The group's adjusted operating income nearly matched last year's first-half figures
This article was originally published on Manufacturingtalk on 18 Nov 2005 at 8.00am (UK)
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"The economy developed somewhat worse than we had expected in the first half while the SARS lung disease negatively affected our Asian business.
Taking that into account, we can look back on what are actually convincing figures in the first half," said Alexander von Witzleben, chairman of the board of Jenoptik at Wednesday's half-year press conference in Jena.
The Jenoptik Group achieved EUR 665.3 euros in sales in the first half of 2003, up 18 percent from the first half of 2002 (EUR 564.0m).
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Order backlog was up 29.5 percent as of June 30, 2003, reaching a new record of EUR 2.9bn (EUR 2.3bn).
The sales and order backlog increases are chiefly the result of the initial consolidation into the group of companies that had not been included in the first half of 2002 such as D.I.B.
(D.I.B.
Gesellschaft fur Standortbetreiberdienste), GTG (GTG Gesellschaft fuer technisches Geb?udemanagement), Jena-Optronik (49 percent of Jena-Optronik and GTG were already consolidated at equity in the precious year), and LDT (Jenoptik Laser Display Technology).
The Jenoptik Group order intake came toEUR 1,190.2m in the first half, up 7.5 percent from the previous first half (EUR 1,106.7m).
Adjusted operating income virtually matches 1st half of 2002 - in the first half, the Jenoptik Group nearly matched its adjusted operating income figures of the previous first half year.
The group's operating income and income for the period in 2002 included an additional income position of just over EUR 30m from the sales of the group's shares in DEWB.
Therefore, in the 1st half of 2003 both figures were clearly below last year's level.
In the first six months of 2003, the group's operating income came to minus EUR 13.2m (+EUR 19.5m / pro forma without DEWB AG -EUR 13.6m) and the group income for the period came to minus 20.1m euros (+EUR 13.1m).
The expected negative income results from the scheduling of payment deadlines towards the end of the year, as is usual for the facility engineering sector.
When adjusted to exclude the sale of DEWB shares, both group operating income and income for the period virtually matched the figures of the first half of 2002.
Outlook for fiscal year 2003: Group sales expected to rise - group sales are expected to rise in 2003, again exceeding EUR 2 billio.
The sales growth will be carried by the Clean Systems business division, for which between EUR 1.75 and 1.9bn in sales are expected in fiscal year 2003, with an EBIT margin of between 1.8 and 2.5 percent.
Due to the difficult market environment in Asia, caused also by SARS, current Clean Systems business division projects in the region have been delayed by a period of two to three months, which means that they can probably not be billed this year.
"That is why we expect to reach only the lower end of the projected sales range in the Clean Systems business division this year, and the EBIT margin might be rather slightly below the range," said Alexander von Witzleben.
Photonics business division sales are expected to rise to between EUR 280 and EUR 300m with an EBIT margin of between 9 and 10 percent.
Business division information - Clean Systems business division profits from positive development in Facility Management - Clean Systems business division sales totalled EUR 528.7, 22 percent higher than during the first half of 2002 (EUR 433.2m).
This included a minor sales increase in the Facility Engineering business area to EUR 369.5m (EUR 341.9m).
The bulk of the business division's sales increase reflects a rise of 59.7 percent in Facility Management business area sales to EUR 175.0m in the first half of 2003 (EUR 109.6m).
Inner growth, the merger with D.I.B.
- Gesellschaft fur Standortbetreiberdienste (D.I.B.) and the acquisition of the remaining 51 percent of GTG (49 percent had already been consolidated into the group at equity in the first half of 2002) all combined for the strong sales increase.
Clean Systems operating income at previous year's level - the Clean Systems business division had an EBIT of minus EUR 17.7, the same as in the first half of 2002 (-EUR 17.7).
The cause of the currently negative income in the Clean Systems business division, and thus for the entire group, is the scheduling of payment deadlines towards the end of the year, as is usual for the facility engineering sector.
This has again led to a negative EBIT for the Facility Engineering business area at the end of the first half.
The figure came to minus EUR 22.6mas of June 30, 2003, a decrease compared with the end of June 2002 (-EUR 19.0m).
By contrast to Facility Engineering, earnings in the Facility Management business area arise continuously.
At EUR 5.3, the business area's operating income has nearly doubled rising faster than sales.
Jenoptik Facility Management's EBIT margin of over 3 percent for the first half was well above average for the sector Order backlog up more than 30 percent from 1st half of 2002 - the Clean Systems business division ended the first half of 2003 with EUR 2.56bn in order backlog, a rise of 31.4 percent over a year earlier (EUR 1.945bn).
Approximately 1.6bn euros in projects are included in the order backlog figures that will enter into accounts in fiscal year 2004 or later in both the Facility Management and Facility Engineering business areas.
The Facility Engineering business area's order backlog rose 13.0 percent to EUR 1,768.8m from the first half of 2002 (EUR 1,564.8m), while the Facility Management business area's order backlog more than doubled to EUR 790.4m (EUR 386.4m).
This rapid growth was both due to the high order intake in the first half and to the inclusion of D.I.B.
and GTG into the company figures.
The Clean Systems order intake rose slightly to EUR 1,016.1m (EUR 983.3m).
This increase can be attributed primarily to the Facility Management business area, with its order intake more than doubling to 364.1m euros (118.6m euros).
Deutsche Bank, an important new customer for the company, placed a long-term facility management order in the first half.
The five-year contract will reach eight-figure euro figures each year.
After an extraordinarily high order intake in the first half of 2002 (EUR 874.1m), the Facility Engineering business area's order intake fell to EUR 664.6m in the first half of 2003.
Important orders were received from AU Optronics, a key Jenoptik customer, and from research institutes.
M+W Zander U.S.
Operations is now also set to engineer and construct a new nanotechnology center for the State University of New York.
Photonics business division matches last year's figures despite difficult economic situation - despite the difficult economic situation, the Photonics business division finished the 1st half of 2003 with success improving its sales, order intake and order backlog.
The division achieved EUR 133.7min sales over the first six months of 2003, an increase of 9.0 percent from the same period in 2002 (EUR 122.7m).
At EUR 83.2m, the Electro-Optics business area saw considerably higher sales than a year earlier (EUR 74.2).
This increase primarily reflects the success of its Traffic Safety Technology and Production Automation units as well as the consolidation of Jena-Optronik (49 percent were already consolidated at equity in 2002) and Jenoptik LDTinto the business area.
The Electromechanical Systems business area's sales also rose slightly to 43.6m euros (EUR 42.8m).
The Photonics business division achieved an EBIT of EUR 11.9m (EUR 12.5m), the slight decrease being the result of the consolidation of Jenoptik LDT, which still has a negative EBIT figure, into the division.
Photonics order intake up 48.4 percent - despite difficult economic conditions, the Photonics business division was able to improve its order intake by 48.4 percent over the first half of 2002 (EUR 115.5m) to EUR 171.4m.
This was the result of successes in the division's Traffic Safety Technology and Production Automation units, in addition to new long-term major orders in the Electromechanical Systems business area in the first half.
This included a long-term framework agreement with Airbus Deutschland GmbH for the delivery of a trolley lift system for use in the Airbus A380 aircraft.
The first partial contract in the first half of 2003 amounted to 22m euros.
The entire long-term framework agreement runs through and beyond the year 2020 and is expected to surpass 100m euros in total volume.
The Photonics business division's order backlog also increased considerably over the twelve months ending in June.
At EUR 353.2m as of June 30, 2003, the figure reflected a 17.5 percent increase from a year earlier (EUR 300.5m).
This was chiefly the result of a very high order intake in the Electromechanical Systems business area and the inclusion of the Jena-Optronik order backlog into the figure.
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