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News Release from: Jenoptik
Edited by the Manufacturingtalk Editorial
Team on 01 February 2007
Jenoptik notes marked increase in sales,
earnings
The Laser and Optics, Sensors and Mechatronics divisions of the German Jenoptik Group all report on a strong growth in business during 2006.
The Laser and Optics, Sensors and Mechatronics divisions of the German Jenoptik Group all report on a strong growth in business during 2006 2006 sales of the continuing business divisions expected to come in at between EUR 480 and 490 million
This article was originally published on Manufacturingtalk on 18 Nov 2005 at 8.00am (UK)
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The operating result of the continuing business divisions (including holding company and real estate) anticipated to rise from EUR 25.1 million in the previous year to between EUR 36 and 39 million.
2006 was one of the most eventful fiscal years for the Jenoptik Group.
The 2006 preliminary figures for the continuing business divisions bear out the strategy of concentrating entirely on the strong growth business in the Laser and Optics, Sensors and Mechatronics divisions.
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The detailed figures for 2006 which the group will be presenting in Jena on March 29, 2007 still include the discontinued Clean Systems business division up to its sale on May 16, 2006.
However, with all the figures below on the past fiscal year Jenoptik is concentrating on the continuing business divisions which are today operated in the Laser and Optics, Sensors, Mechatronics divisions and Other (holding company and real estate).
Sales and results from the operating activities of the continuing business divisions posted a double-digit percentage increase in 2006.
According to the provisional calculations sales will come in at between EUR 480 and 490 million (previous year EUR 410.1 million) and therefore represent a 15 to 20% rise on the figure for the previous year, clearly exceeding the forecast raised in November.
The growth in business was the result of the very good progress achieved by the three operating divisions which benefited from the positive economic development as well as from initial consolidation of acquisitions and smaller R+D project companies.
According to provisional calculations, the overall result from operating activities by the continuing business divisions (including holding company and real estate) will increase by between 40 and 50% to between EUR 36 and 39 million (previous year EUR 25.1 million).
In terms of the operating business (former Photonics business division excluding holding company and real estate), sales are expected to come in at between EUR 470 and 480 million (previous year EUR 401.3 million).
The leap in sales was particularly significant in the Laser and Optics division which is expected to report growth in sales of between EUR 45 and 50 million in 2006, to EUR 195 to 200 million (previous year EUR 149.7 million).
This would represent a marked increase over the original forecast of between EUR 160 and 170 million.
That is why in November 2006 the forecast had already been raised to between EUR 185 and 195 million.
Key contributors to these figures were the areas of high-power diode lasers as well as high-performance and micro-optics, the main market for which is semiconductor manufacturers.
The boost in sales was also the result of the initial consolidation of the smaller acquisitions and R+D project companies.
The Sensors division is expected to achieve sales in excess of EUR 150 million (previous year EUR 136.1 million) and consequently reach the forecast range of between EUR 147 and 157 million, a forecast which had also been raised in November 2006 from before EUR 140 to 150 million.
The main contributing factor here was the acquisition of the French specialist in measurement technology ETAMIC in Autumn 2006.
Consolidated for the first time as at October 1, 2006, Etamic added sales of almost EUR 8 million in 2006.
According to the provisional calculations, the Mechatronics division posted sales of between EUR 125 and 130 million (previous year EUR 117.
2 million) and therefore reached the target range of between EUR 120 and 130 million.
The other areas (real estate and holding company) are expected to make a contribution to sales of about EUR 10 million in 2006.
The anticipated results from operating activities of the operating business (former Photonics business division excluding holding company and real estate) are between EUR 42 and 44 million (previous year 39.1 million) and consequently - as announced in advance - are expected to come in at the upper end of the forecast range of between EUR 38 and 44 million.
The increase in earnings was slightly lower than the strong growth in sales.
This was attributable to the above-mentioned initial consolidation of Etamic and other acquisitions as well as to the start-up of R+D project companies without or with a still negative contribution to the results.
In addition, in the Sensors division Jenoptik pressed ahead massively with the expansion of the North American business in 2006 in preparation for a major order.
This major order, which has since been awarded by Canada for traffic safety technology and is valued at significantly above EUR 10 million, will have an effect on sales and results only in the subsequent years.
For the 2006 earnings after tax of the Jenoptik Group, the Jenoptik Group reaffirms the forecast of between EUR 10 and 15 million, which is a multiple of the previous years' figure of EUR 4.0 million.
More precise statements on the earnings after tax cannot be given at present due to the fact that the deferred taxes have not yet been calculated.
* Group order intake benefits from good economic activity and new products - according to provisional calculations the order intake of the Jenoptik Group reached approx.
EUR 480 million (previous year EUR 449.5 million) some 7% more than in the previous year.
The high order intakes of the Laser and Optics division which reported an increase of around 40% to more than EUR 200 million, compensated for a major order in the Mechatronics division in the previous year valued at approx EUR 50 million.
A series of new products contributed towards the high order intake.
As such, for example the digital camera for traffic safety technology developed in Jena carved out a clear lead against rival providers.
In the area of plastic optics and optoelectronic systems the changeover to the new product generation of our clients was successfully completed in parallel with the move to new corporate premises.
The group order backlog in the anticipated sum of EUR 440 to 450 million (previous year EUR 438.7 million) reflects the strong order intake.
The order backlog will be slightly up on the level for the previous year - despite the high growth in sales volume.
Approximately half of the order backlog will contribute to sales in the current 2007 fiscal year.
The number of employees showed a marked increase as at the end of the fiscal year just past, to over 3,200 (as of December 31, 2005: 2,835).
In addition to new appointments, the acquisition of ETAMIC in the Sensors division provided a significant boost, with Jenoptik welcoming 260 new employees, the majority of them in France, Switzerland and the USA.
* Balance sheet and financial indicators characterized by the sale of M+W Zander - the balance sheet total had already reduced significantly as at the half year 2006 during the course of the sale of M+W Zander.
Consequently and during the course of the further reduction in debt, the shareholders' equity ratio also increased sharply from 20.8 percent at the end of 2005 to 34.0% as of September 30, 2006.
As had been forecast, the net debt was also markedly reduced from EUR 375.5 million at the end of 2005 to EUR 211.1 million as of September 30, 2006.
At this current point in time it is not possible to provide more specific statements for the end of 2006.
It is however the assumption of the Executive Board of Jenoptik AG that shareholders' equity ratio and net debt will be within the range of the figures as of the third quarter 2006.
In the 2006 fiscal year just past Jenoptik succeeded in achieving all its main objectives.
In addition to the successful sale of M+W Zander and, with it, the entire Clean Systems business division, the courts ruled in favor of Jenoptik in the legal dispute with a DEWB shareholder.
The Group disposed of further non-strategic investments, including additional shares in the investment company DEWB.
The sale of a property in the center of Jena led to a further reduction in the liabilities arising from finance lease.
"In 2007 we will continue our chosen path," said the Jenoptik boss Alexander von Witzleben, commenting on the current fiscal year.
* Outlook is for profitable growth by and 'fine-tuning' of the Group - the Jenoptik Group aims to continue achieving further growth averaging around 10% per annum - including smaller acquisitions which Jenoptik continually adds to its technology portfolio and sales structures when suitable opportunities arise.
"An increase in sales of 15 to 20% in 2006 put us ahead of our expectations.
Naturally, for our 2007 targets we must take account of our current high starting basis," said the Jenoptik boss.
Group sales in the current fiscal year 2007 are expected to be substantially above the EUR 500 million level.
With regard to the result from operating activities Jenoptik is aiming for approx.
8% of sales (including other, i e, holding company and real estate) and is therefore rearranging its forecasts on to the new, focused group.
On the operating business side, over the coming years Jenoptik will concentrate on increasing its profitability and operating cash flow.
Profitability is expected to be increased primarily during the course of the intensified interlinking of the business along the entire added value chain.
"It goes without saying that the organization must keep up with the growth that we have achieved in 2006 and what we have planned for the future," said von Witzleben.
For example in 2007 one of the focuses of the activities in the Sensors division will be on amalgamating Hommelwerke and ETAMIC.
In addition to improvements in the operating business, in 2007 Jenoptik aims to dispose of further non-strategic investments and real estate not required for operational purposes.
The resultant cash inflows are to be used in order to further reduce debt.
With the planned repayment of the bond in Autumn 2007 the group's financing structure will significantly alter and the balance sheet will reduce.
However, in 2007 the early repayment will impact on the group financial result in 2007 for the last time.
This will be followed by a resultant significant reduction in the burden on the financial result in future.
The shareholders' equity ratio by contrast will rise towards approx 40% during the course of the reduction in the balance sheet.
The long-term objective of the Jenoptik Group is to generate sales of EUR 1 billion.
The aim is to grow the result of operating activities to between 9 and 10% of sales.
"The focus of our activities will be on profitable growth but not growth at any price".
"In 2006 we created a rough structure for the Group and in the process achieved all our plans.
The task now," according to Witzleben, "is to apply the necessary 'fine-tuning' to the company.".
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