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Jenoptik: successful business development

The results for the first nine months of the Jenoptik Group show a positive and very robust development of business. Sales and earnings posted double figure percentage rises above the level achieved in the previous year. The order intake also remained at a good level.

In the first nine business months of 2012 the Jenoptik Group recorded sales of EUR 423.1 million (prev. year EUR 383.9 million). This corresponds to a 10.2% increase over the same period in the previous year. Sales abroad increased again – both proportional as well as in net terms, totalling 64.5% or EUR 273.0 million (prev. year 60.3% or EUR 231.4 million). A reduction in sales in Europe was more than offset by strong growth in America and Asia/Pacific. In the first nine months 2012 Jenoptik generated an increase in sales of 45.7% or EUR 50 million in the regions outside of Europe compared with the same period in the previous year. “The expansion of our international business is beginning to pay off,” said Group Chairman Michael Mertin. Jenoptik has been consistently pressing ahead with the expansion of its global presence since 2009. In the current fiscal year new locations have been added in Brazil and Singapore. Existing locations are being expanded, primarily in Asia and North America.
Group EBIT increased by 20.6% over the same period in the previous year, to EUR 42.1 million (prev. year EUR 34.9 million). This was due to the rise in sales, which was accompanied by proportionately higher growth in earnings, mainly in the Metrology segment. The Jenoptik Group EBIT margin rose from 9.1% in the same period in the previous year to now 10.0%. “So we are showing a level of profitability within our target range once again and on a sustainable basis,” said Michael Mertin. In the 3rd quarter alone, the EBIT margin was 11.6%.
The rise in the EBIT and an improvement in the financial result led to earnings after tax of EUR 30.0 million, up by 40.2% compared with a year ago (prev. year EUR 21.4 million). Income taxes totalled EUR 5.9 million (prev. year EUR 3.6 million) the cash-effective tax rate was 16.2%. Earnings per share rose by 40.5% to EUR 0.52 (prev. year EUR 0.37).
At EUR 437.1 million, the order intake for the first nine months of 2012, exceeded sales but did not reach the high level in the previous year of EUR 513.7 million. By the end of September 2012, Jenoptik had received several major orders, among others for traffic safety equipment from Malaysia and Oman as well as for medical lasers from the US and for metrology equipment. The order intake for the same period in the previous year was mainly characterized by the two large partial orders for the PUMA armoured fighting vehicle, together totalling more than EUR 70 million.
In the first nine months of the current year the order backlog of the Jenoptik Group reported a small increase of 3.1% to EUR 462.2 million (31.12.2011: EUR 448.5 million).
As at 30 September 2012, the Jenoptik Group had a total of 3,224 employees, 107 more than at the end of last year (31.12.2011: 3,117 employees). The increase is primarily attributable to the expansion of business, with the strongest rise coming from the Metrology segment. But at 3% it was significantly lower than the rise in sales. New employees were recruited mainly at the Jena site and abroad. The number of employees abroad has now risen to 421.
The cash flow from operating activities was EUR 38.0 million, EUR 23 million of which was generated in the 3rd quarter 2012 alone. As at 30 September 2012, net debt totalled EUR 78.6 million (31.12.2011: EUR 77.1 million).
The positive result for the period increased Jenoptik’s shareholders’ equity to EUR 333.9 million (31.12.2011: EUR 310.8 million). At 51.1%, the shareholders’ equity quota, the ratio between shareholders’ equity and balance sheet total, remained above the 50% mark.
“Our sound financial base enables us to invest and get our global systems and processes fit to reflect Jenoptik’s worldwide presence and to expand globally,” said Chief Financial Officer Rüdiger Andreas Günther. The initiatives for harmonized and excellent processes – both in the operational business as well as in systems and commercial processes – will be consistently pursued in the Group. They mainly include the Jenoptik Excellence Program, a lean programme and the Jenoptik One ERP programme, JOE for short.
The Executive Board of the Jenoptik Group continues to expect a successful fiscal year 2012 with organic growth and reaffirms the forecasts issued in July this year: sales are forecast to grow by 5 to 10% (previously 4 to 8%). The Executive Board anticipates a total Group EBIT of between EUR 50 and 55 million (previously EUR 45 to 50 million). With the confirmed sales and earnings forecast and the figures for the first nine months 2012 Jenoptik is expecting a slightly weaker 4th quarter 2012 compared to those in the previous years. “At present, stimulus from the semiconductor industry is reduced. But today we are in a better position to compensate for such cyclical fluctuations than in the past. We have confirmed our forecast for 2012 and remain committed to our target of profitable growth.”
The Jenoptik Group expects to continue reporting profitable growth over the years ahead and to achieve an average EBIT margin of between 9 and 10% as well as sales growth of approx. 10% over the market cycles. The sales target is also still expected to be achieved primarily through organic growth. This is mainly due to the consistent continuation of the process of internationalization, focusing on North America and Asia. “Jenoptik is establishing itself as a strategic partner for international customers and together with them helping to shape pioneering trends in the areas of energy efficiency, safety, health and mobility. We feel it is important to be close to the customer with our own local structures. Over the last nine months we have made good progress with the development of new and the expansion of existing sales and service structures,” says Jenoptik Chairman Michael Mertin in summarizing the strategy.
The Jenoptik Group’s goal is to increase the percentage of sales in the two regions mentioned above together to approx. 40% of group sales over the medium to long term. Compared with 2011, this represents roughly a doubling of the share of sales. It is intended to be achieved by expanding the business with existing customers, attracting new customers and the local manufacture of complete components.

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