Carl Zeiss half-year figures:
– Revenue at same level as prior year
– EBIT at EUR 232 million
– Major investments in modernization of the company
– Investments in research and development increased by 10%
– Optimistic outlook for second half of fiscal year
Despite the expected downturn in the semiconductor market, revenue and earnings of the Carl Zeiss Group in the first six months of fiscal year 2011/12 remained at approximately the same level as in the prior year: revenue reached EUR 2.105 billion, and earnings (EBIT) EUR 232 million. The technology group therefore once again presented pleasing half-yearly figures (for the period from 1 October 2011 to 31 March 2012). The Industrial Metrology and Medical Technology business groups posted a substantial increase in revenue over fiscal year 2010/11. The revenues of the Microscopy and Vision Care business groups attained the same level as in the previous year. As expected after the record figures achieved in the prior year, the Semiconductor Manufacturing Technology group reported a downturn in revenue, which is typical of the business cycles in this sector. “We got off to a good start in fiscal year 2011/12. Revenue and earnings have exceeded our targeted figures,” said Dr. Michael Kaschke, President and CEO of Carl Zeiss. “The general economic climate proved to be very stable in many areas. Through our broad diversification, we were able to largely compensate for the cyclical downturn in the Semiconductor Manufacturing Technology group. This underscores the strength of our portfolio.”
Revenue of the Carl Zeiss Group totalled EUR 2.105 billion, the same level as in the prior year (first six months of 2010/11: EUR 2.143 billion). In the first half of the fiscal year Carl Zeiss generated around one third of its revenue in Europe. Here, revenue increased to EUR 681 million, 5% more than in the previous year – including EUR 252 million in Germany (first six months of 2010/11: EUR 649 million, including EUR 242 million in Germany). With revenue totalling EUR 518 million, the Group also improved its performance in the Americas region. After adjustments for currency influences, this equates to an increase of 9% (first six months of 2010/11: EUR 466 million). The company reported a particularly strong upturn in revenue in the Asia region. After allowance for currency effects, revenue rose 19% to EUR 368 million (first six months of 2010/11: EUR 298 million). Due to the downturn in the business with semiconductor manufacturing technology, the revenue generated with cooperation partners totalled EUR 485 million, a drop of 29% over the prior year (first six months of 2010/11: EUR 678 million). Business outside Germany accounted for 87% of total revenue.
At the end of the first half of the fiscal year, EBIT (Earnings Before Interest and Taxes) amounted to EUR 232 million (first six months of fiscal year 2010/11: EUR 355 million). Net income totalled EUR 130 million (first six months of 2010/11: EUR 186 million).
On 31 March 2012, Carl Zeiss had a global headcount of 24,862 people, including 10,469 at the company’s sites in Germany. In the past six months the number of employees increased by around 3% (end of fiscal year on 30 September 2011: 24,192 employees). In the first six months of the current fiscal year alone, Carl Zeiss created over 600 new jobs around the globe.
In the first half of fiscal year 2011/12 cash flows before income taxes totalled EUR 329 million, equating to 16% of revenue (first six months of 2010/11: EUR 477 million, 22% of revenue). On 31 March 2012 gross liquidity came to EUR 861 million (end of fiscal year on 30 September 2011: EUR 847 million). Net liquidity totalled EUR 342 million (end of fiscal year on 30 September 2011: EUR 397 million). “The reduction is attributable in particular to the semiconductor business and to our significant investments. For ongoing development in the current fiscal year, we are confident that we can reach or even surpass our targets,” explained Carl Zeiss CFO Thomas Spitzenpfeil. The trend in equity is also positive: on 31 March 2012 it amounted to over EUR 1 billion, with an equity ratio of 28%. Spitzenpfeil emphasized: “Our financial figures give us a solid foundation that allows us to continue our investments and flexibly leverage the opportunities available to us to address the challenges posed by our markets.”
In the first half of the current fiscal year Carl Zeiss invested EUR 108 million in property, plant and equipment (fiscal year 2010/11: EUR 164 million) in order to further modernize its global sites. In the upcoming years the technology group will invest a total of EUR 500 million in the further expansion of its sites in Germany. These investments compared to depreciations totalling EUR 67 million (fiscal year 2010/11: EUR 122 million).
The product innovation rate continues to lie at a high level: Carl Zeiss generates around 45% of its revenue with products that are less than three years old. In order to further expand its technology leadership in its various areas of business, the company invests in research and development on an ongoing basis. In the first half of fiscal year 2011/12, EUR 190 million was utilized for this purpose, equating to 9% of revenue (first six months of 2010/11: EUR 173 million, or 8% of revenue).
In the first half of fiscal year 2011/12 the Semiconductor Manufacturing Technology business group generated revenue totalling EUR 478 million, a decrease of 25% over the prior year (first six months of 2010/11: EUR 638 million). As expected, demand in the semiconductor equipment market levelled off considerably in the current fiscal year after strong growth in 2010/11.
The Industrial Metrology business group ended the first half of 2011/12 with a 29% growth in revenue to EUR 237 million (first six months of 2010/11: EUR 184 million).
In the first half of fiscal year 2011/12 the Microscopy business group generated revenue totalling EUR 310 million, an increase of 2% over the prior year (first six months of 2010/11: EUR 305 million).
In the first six months of fiscal year 2011/12 the Medical Technology business group increased its revenue by 17% over the previous year to a total of EUR 484 million (first six months of 2010/11: EUR 413 million). The values deviate from the published figures of Carl Zeiss Meditec AG as a result of different consolidation models.
With a total of EUR 432 million, revenue of the Vision Care business group remained at the same level as the prior year (first six months of 2010/11: EUR 429 million). The restructuring of the business group is making good progress.
The Consumer Optics/Optronics business group, which combines the company’s business with binoculars, planetariums, camera and cine lenses as well as optronic products, reported revenues totalling EUR 152 million in the first six months of fiscal year 2011/12. This equates to a slight decrease of 6% over the previous year (first six months of 2010/11: EUR 162 million). Very different developments were seen in the business units of this business group: in the optronics business Carl Zeiss felt the impact of customers’ reluctance to invest. However, a pleasingly positive trend was observed in the business with camera and cine lenses, binoculars and planetariums.
Carl Zeiss continues to look with optimism to the second half of the fiscal year. The company expects the stability of the general economic climate to continue and anticipates ongoing growth in the rapidly developing economies. The forecast of the Carl Zeiss Group for fiscal year 2011/12 remains unchanged: “Despite the cyclical downturn in semiconductor manufacturing technology, we are aiming for revenue of around EUR 4 billion,” Kaschke emphasized. In the second half of the fiscal year the Group will continue to invest and further develop its portfolio to make it fit for the challenges of the future.