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News Release from: Jenoptik
Edited by the Manufacturingtalk Editorial
Team on 14 November 2006
Optical systems Jenoptik group sales up
19.3%
With nine month sales of EUR 344.3 million the optical systems manufacturer, Jenoptik Group recorded a 19.3% increase compared with its continuing business divisions.
The Jenoptik Group (continuing business divisions) posted double-figure growth rates in its nine month sales and results compared with the same period in the previous year The Jenoptik Group further improved the key financial indicators during the course of the third quarter
This article was originally published on Manufacturingtalk on 15 Jun 2007 at 8.00am (UK)
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The forecasts for the full year 2006 are reaffirmed, in this context sales in 2006 are expected to be slightly above the target level of EUR 450 million as a result of initial consolidations.
With nine month sales of EUR 344.3 million the Jenoptik Group recorded a 19.3% increase compared with the same period in the previous year (previous year EUR 288.6 million) with its continuing business divisions.
Foreign sales accounted for EUR 197.9 million and consequently 57.5% of total sales.
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All three divisions reported increases.
The Laser and Optics division recorded a particularly significant rise - both through organic growth as well as through initial consolidation, primarily of smaller R and D project companies.
The result from operating activities before depreciation (EBITDA) of the continuing business as of the end of the 3rd quarter 2006, at EUR 46.7 million, was also markedly up on the previous year (prev.
year EUR 39.1 million).
The 19.5% growth came mainly from the Laser and Optics division and is the result of the increased sales.
The result from operating activities of the continuing business divisions rose by 20.7% to EUR 24.2 million (previous year EUR 20.0 million).
There was a slight increase in the EBIT margin of the continuing business divisions to 7.0% (previous year 6.9%).
Earnings after tax of the continuing business divisions of the Jenoptik Group totaled EUR 11.8 million compared with EUR 10.0 million in the same period in the previous year.
* Increase in the order intake is thanks to good economic development - the order intake of the continuing business divisions surpassed the level for the previous year - contrary to expectations - by 3.8% to EUR 346.5 million (previous year EUR 333.9 million).
The Laser and Optics division in particular benefited from the pick-up in economic activity and consequently increased demand for investment goods and was therefore able to compensate for the anticipated fall in the order intake of the Mechatronics and Sensors divisions.
The order intakes of these two divisions in the previous year were characterized by two major orders which together accounted for more than EUR 60 million and so cannot be repeated on a yearly basis.
The order backlog remained almost constant at EUR 436.1 million as against December 31, 2005 (as of December 31, 2005: EUR 438.7 million) primarily as a result of the expansion of sales.
The number of employees in the Jenoptik Group (continuing business divisions) rose by 2.9% compared with the end of 2005, to 2,917.
The increase was the result of new appointments during the course of the good business position and initial consolidations, particularly in the Laser and Optics division.
At the end of August 41 new trainees started their careers with the Jenoptik Group, approximately 25% more than a year ago.
The number of trainees in September was therefore nearly 140, representing a trainee quota of about 5%.
Research and development expenses totaled EUR 23.7 million and therefore rose sharply by 30.2% compared with the same period in the previous year (previous year EUR 18.2 million).
The reason for this marked increase is a general expansion of the research activities, particularly in the Laser and Optics division, as well as an initial consolidation of smaller research-intensive R and D project companies.
The R and D quota increased to 6.9% (previous year 6.3%).
Including the developments on behalf of clients which are shown under the cost of sales, the R and D quota is in excess of 10 percent.
R+D expenses also exclude the rapidly developing new business companies Xtreme technologies and Jenoptik Diode Lab which are included in the investment result.
* Further improvement in the key financial indicators of the Jenoptik Group - net debt - as forecast - was also further reduced in the third quarter.
As of September 30, 2006 it totaled EUR 211.1 million compared with EUR 375.5 million as of the end of the 2005 fiscal year.
The payment of the purchase price for the Clean Systems business division which was sold in the second quarter, had a positive effect.
Disposals of assets not required for operational purposes further reduced net debt in the third quarter.
As of September 30, 2006, cash and cash equivalents plus securities, together totaling EUR 158.4 million, were offset by financial liabilities in the sum of EUR 369.4 million.
Financial assets (including shareholdings in associated companies) fell to EUR 61.5 million (as of December 31, 2005: EUR 89.7 million).
During the course of the fiscal year Jenoptik gradually sold shares in DEWB, amongst others.
Following another further reduction in the shareholding during the current fourth quarter Jenoptik will not be selling any further DEWB shares over the medium term.
The balance sheet total of the Jenoptik Group reduced to EUR 885.3 million (as of December 31, 2005: EUR 1,508.3 million) as a result of the sale of the Clean Systems business division.
The assets and liabilities of M and W Zander had already been shown as 'held for sale' as of December 31, 2005.
These balance sheet items are still shown in the accounts for the current 2006 fiscal year at zero following the conclusion of the sale of Clean Systems.
The shareholders' equity reduced by EUR 13.1 million to EUR 301.3 million (as of December 31, 2005: EUR 314.3 million).
This is essentially the result of the reduction in the minority interests following the sale of M and W Zander.
The positive nine month result had an opposite effect.
Despite the reduction in shareholders' equity the shareholders' equity ratio improved significantly as a result of the reduction in the balance sheet to 34.0% (as of December 31, 2005: 20.8%).
It is planned to repay the bond early in Autumn 2007.
The associated reduction in the balance sheet of EUR 150 million would give rise to a shareholders' equity ratio of nearly 41% for the Jenoptik Group.
* Results forecast for the 2006 year as a whole are reaffirmed - full year sales are expected to slightly exceed the target range.
The sales of the Jenoptik Group - excluding the discontinued business division - are expected to slightly exceed the EUR 450 million euro mark in 2006 following the initial consolidation of acquisitions and smaller R and D project companies.
Jenoptik will endeavour to achieve the same quality of results achieved in previous years by the Photonics business division.
The result from operating activities before holding costs should therefore be between EUR 38 and 44 million.
The Jenoptik Executive Board reaffirms its forecasts published in the first half-year 2006 that the result for the full-year 2006 might come in at the upper end of the range.
The Jenoptik Executive Board considers the risk of the sale of M and W Zander, completed in May 2006, having any further impact on the results of the Jenoptik Group, as rather minimal.
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