Jenoptik successfully closes 2013 fiscal year

Revenue increases to EUR 600 million; Group operating result (EBIT) at EUR 52.7 million; Earnings before tax (EBT) rise to EUR 47.2 million; Dividend to increase to EUR 0.20 per share; Jenoptik expects stronger growth in 2014.

In 2013, the Jenoptik Group saw its fourth successive year of organic growth and generated revenue above the EUR 600 million mark for the first time in the company’s recent history. “Despite a challenging market environment, we achieved our revenue and earnings targets in line with our 2013 guidance. At the same time, our capital expenditure allowed us to put in place the conditions for further profitable growth,” says Jenoptik President & CEO Michael Mertin, summing up the fiscal year just past.
In view of these successful developments and the Group’s sound financial footing, the Executive Board and Supervisory Board of JENOPTIK AG will propose increasing the dividend payment from EUR 0.18 to EUR 0.20 per share to the Annual General Meeting. That equates to a rise in the payout ratio from 22% to approximately 25%.
In 2013 the Jenoptik Group achieved revenue growth of 2.6% to EUR 600.3 million (prior year EUR 585.0 million). On a regional level, growth momentum was primarily attributable to Germany and America. Jenoptik generated 62.0% of its revenue abroad (prior year 64.4%). The Lasers & Optical Systems segment reported the sharpest increase in revenue at 5.8%. The three segments target a balanced market portfolio with their core competencies. The automotive/machine construction sector remained the most important market, accounting for 27.9% of revenue.
The Group operating result (EBIT) totalled EUR 52.7 million (prior year EUR 54.8 million) and, as scheduled, was influenced by the expansion of international sales and R+D activities and expenses for Group development projects. The high profitability level in the 2012 record year was almost matched last year; the EBIT margin was 8.8% (prior year 9.4%).
Lower interest rates due to more favourable financing terms and the first positive investment result in particular led to an improvement in the financial result to minus EUR 5.5 million (prior year minus EUR 8.7 million). Earnings before tax (EBT) consequently rose from EUR 46.1 million to EUR 47.2 million. Earnings per share came to EUR 0.82, compared to EUR 0.88 in the prior year.
In the 2013 fiscal year, the Jenoptik Group received new orders worth a total of EUR 575.3 million. The order intake was thus just slightly below the high level in the prior year of EUR 587.2 million, characterized by several major orders in the Metrology and Lasers & Optical Systems segments. Due to a weaker economic trend, 2013 also saw orders being postponed to subsequent periods.
At the end of 2013, the order backlog of the Jenoptik Group, at EUR 411.4 million, was below the high level in the prior year (31/12/2012: EUR 446.8 million) due to a changed order structure, primarily in the Defense & Civil Systems segment.
Key financial indicators substantially improved, net debt considerably reduced.
The key financial and balance sheet indicators continued to show positive development in the 2013 fiscal year. The free cash flow improved from EUR 43.7 million to EUR 47.0 million. Net debt could therefore be reduced from EUR 74.5 million to EUR 44.1 million, despite the payment of a higher dividend. The equity ratio rose to 53.0% (prior year 49.3%), thereby improving for the fourth year in succession. “Jenoptik has a long-term and viable financing structure which provides the Group with room for maneuver to secure future growth and the ongoing implementation of its strategy,” says CFO Rüdiger Günther.
In light of the expansion of business, the number of employees in the Jenoptik Group rose 4.9% to 3,433 at the end of 2013 (prior year 3,272). The greatest number were taken on in the Metrology and Lasers & Optical Systems segments. In the course of the internationalization strategy, the number of employees abroad increased to 475 (prior year 433), equating to 13.8% of the combined workforce.
Over the year, the segments’ development of business and earnings was significantly supported by measures to optimize internal processes and the success achieved in implementing the internationalization strategy. In 2013 all three segments in the Jenoptik Group recorded an increase in free cash flow and achieved a positive EBIT also in 2013.
In the Lasers & Optical Systems segment, Jenoptik further strengthened its position as a leading supplier of optical and optoelectronic system solutions. In the 2013 fiscal year, revenue rose by 5.8% to EUR 224.7 million (prior year EUR 212.3 million). The EBIT came to EUR 24.6 million (prior year EUR 27.1 million), the EBIT margin was 10.9% (prior year 12.8%). The development of earnings was chiefly influenced by a change in the product mix, start-up costs for new customer projects and the expansion of international sales. At EUR 221.4 million, the order intake just exceeded the high level in the prior year (prior year EUR 219.9 million). The segment’s order backlog reduced to EUR 94.3 million at the end of the year (31/12/2012: EUR 105.2 million).
Revenue in the Metrology segment grew by 2.6% to EUR 187.4 million in 2013 (prior year EUR 182.7 million), with growth split evenly between Industrial Metrology and Traffic Solutions. The segment benefited from robust demand from the automotive industry for new measurement techniques for fuel-saving and low-emission engines, and from deliveries for projects relating to traffic safety. The segment EBIT, at EUR 22.6 million, and an EBIT margin of 12.0% remained at a high level (prior year EUR 25.6 million, 14.1%). The order intake declined by 13.2% to EUR 172.5 million in 2013 (prior year EUR 198.7 million). The order intake in 2012 had included major projects in Malaysia and Oman. The order backlog as at year-end fell from the high figure in the prior year to EUR 72.8 million (31/12/2012: EUR 87.4 million).
Despite a challenging economic environment and falling defence budgets, revenue of EUR 185.1 million in the Defense & Civil Systems segment matched the level of the prior year in 2013 (prior year EUR 186.4 million). Mainly thanks to one-off effects due to planned site optimization in Germany and improved cost structures, the segment EBIT rose to EUR 11.6 million (prior year EUR 7.8 million). The EBIT margin improved to 6.2% (prior year 4.2%). In 2013, the order intake exceeded the level of the prior year by 8.6% and came to EUR 179.2 million (prior year EUR 165.0 million). The segment’s order backlog reduced to EUR 246.9 million at the end of the year (31/12/2012: EUR 255.8 million).
In 2014, the Jenoptik Group again wants to invest strongly in the expansion of the international sales structures and in the development of innovative products. In addition, the measures for internal process optimization and the projects for Group development will also be continued as scheduled. “In view of the considerable capital expenditure we are making in Jenoptik’s future and our robust economic development, we are forecasting stronger growth in revenue and earnings for the current fiscal year. We want to see an increase in revenue of between 5 and 10%. The Group EBIT is expected to show a marked improvement in 2014; our guidance is within the EUR 5 to 62 million range,” says Michael Mertin.