The Jenoptik Group also posted a significant increase in all earnings-related figures as at end of the 3rd quarter. The Group EBIT rose by 16 percent, earnings after tax - after showing a loss in the previous year - were up at 10.2 million euros. The operating business is feeling the first impact of the economic downturn, particularly in the semiconductor and automotive industry. However, this is being partially offset by a good year in the Defense & Civil Systems segment.
Sales of the Jenoptik Group for the first nine months rose by 6.1 percent to 397.4 million euros (prev. year 374.7 million euros). Exports accounted for 56 percent of total sales (prev. year 57 percent). The Jenoptik Group continued the positive trend in results achieved in the 1st half-year and posted a significant increase in all key earnings-related figures. Group EBIT (result from operating activities before interest and taxes) rose at a markedly higher rate in proportion to sales by 16 percent to 24.6 million euros (prev. year 21.2 million euros). The positive development of results is attributable to the Defense & Civil Systems segment which was able to significantly increase the EBIT as a result of the increase in sales and a different product mix.
The Group's financial result improved by more than 40 percent to minus 11.3 million euros (prev. year minus 19.1 million euros). This was attributable to the disposal of marginal activities and development themes which offer no future prospects as well as the new financing structure. The early repayment of the high-yield bond in November 2007 resulted in an improvement of the interest result in the total sum of approx. 5.8 million euros as at September 30 this year.
Income taxes increased to 1.4 million euros (prev. year 0.6 million euros) as a result of higher earnings. There was a corresponding increase in the earnings after tax to 10.2 million euros (prev. year minus 2.5 million euros).
Group order intake up by 8 percent.
Despite the marked deterioration in the economic framework conditions the Jenoptik Group succeeded in increasing its order intake in the first nine business months by 8 percent to 398.4 million euros, it was thus at the level of sales (prev. year 368.9 million euros). In the Lasers & Optical Systems segment the "downturn" in the semiconductor equipment industry was reflected in the order intake which was more than offset by growth in the other two segments. The Jenoptik Group order intake, at 438.5 million euros, remained at the same level as in the previous year (as of December 31, 2007: 439.5 million euros).
Continuation of the clearly positive operating cash flow, slight rise in the shareholder's equity quota. Asyst trial finished in favor of Jenoptik.
The reason for the slight fall in the cash flow from operating business activities before income taxes, at 21.0 million euros (prev. year 27.6 million euros) is a stronger rise in the working capital during the course of the year compared with that of the previous year. The shareholder's equity of the Jenoptik Group increased to 288.5 million euros as a result of the profit reported (as of December 31, 2007: 280.9 million euros). During the course of this there was a further increase in the shareholder's equity quota of the Group to the new figure of 41.2 percent (as of December 31, 2007: 40.3 percent).
Jenoptik has a sound financial basis with unused, short-term bank lines at its disposal and long-term liabilities which are predominantly secured independently through real estate. Due to the banking crisis Jenoptik expects that the supply of credits which is expensive for the banks as well as the insecurity in the markets will result in rising interest rates for company credits. In view of the fact that the convertible bond in the nominal sum of 62.1 million euros will mature in July 2009 and therefore has a residual period of less than twelve months, this bond must now no longer be shown under non-current liabilities but current liabilities instead, these consequently increased accordingly for the first time as at September 30 this year. This recategorization will have no impact on the net debt which amounted to 198.3 million euros.
Forecasts reaffirmed for the full year 2008. The Group EBIT is expected to come in at the lower end of the forecast earnings range. The improvement in the interest result will be fully achieved.
Despite the marked deterioration in the economic framework conditions the Jenoptik Group's figures for the first nine months also show positive trends for the operating business:
- The strategic realignment and new organizational structure into five divisions.
- The consistent withdrawal from marginal activities which offer no future prospects in 2007 and the beginning of 2008.
- A continuation of the pick-up in the international market for traffic safety equipment since May this year.
- The positive development of the security and defense technology sector, with the focus on safety and training products.
Despite the marked deterioration in the economic framework conditions the Jenoptik Group is therefore reaffirming the forecasts for the full year 2008. Sales at just under 550 million euros and earnings at 37 million euros, however, will come in at the lower end of the forecasts. This is attributable to the slowdown in economic activity, in particular in the automotive and semiconductor equipment industry. The latter which will leave its mark on the Laser & Optical Systems segment. Jenoptik does not currently foresee any early recovery in the semiconductor sector. The Metrology segment achieved the turnaround in 2008. Following a negative 1st quarter in terms of results, reaching the break-even point in the 2nd quarter as planned and a clear, positive contribution to the EBIT in the 3rd quarter, a further increase in the contribution to the EBIT is expected in the current 4th quarter. In the current 4th quarter the Jenoptik Group will also benefit from a continuation of the very good performance being achieved in the Defense & Civil Systems segment.
The improvement of the interest result by 11 to 14 million euros compared with the previous year, forecast at the beginning of the year, is being also reaffirmed. As planned, the lack of the one-of-effect from the early repayment of the high-yield bond in 2007, the resulting improvement of the interest structure and an on average lower net debt contribute to this improvement.
With regard to the economic framework conditions Jenoptik - like all other companies at present - is faced with a development which is currently very difficult to predict. Risks are created through difficult market conditions for financing and the consequences of this for industrial companies. The semiconductor and automotive industries, two key sectors for Jenoptik, are both experiencing a massive downturn. We anticipate being able to basically offset the consequences of this development for the progress of business over the remaining weeks 2008, but it is not possible at this point in time to provide a complete forecast.
Information on the three segments of the Jenoptik Group.
The development of the Laser & Optical Systems segment, particularly in the 3rd quarter 2008, is characterized by the heightening crisis in the semiconductor sector. However, the segment was able to rely on a very good 1st quarter 2008. In addition, other activities, e.g. the photovoltaics systems of the Lasers & Material Processing division were able to partially offset the fall in the semiconductor market.
Sales of the segment totaled 153.3 million euros and, with 3.9 percent, were just below the figure for the same period in the previous year (prev. year 159.5 million euros). This is attributable to the disinvestments in the 1st half-year 2008 as well as to an accelerating fall in sales with the semiconductor sector. This was the reason why, at 15.0 million euros, the EBIT was down on the level for the previous year (prev. year 16.4 million euros). As in the past however the laser diodes, optics and micro-optics areas of business are making a great contribution to sales and results in the segment. The order intake totaled 153.7 million euros (prev. year 160.7 million euros) and was therefore at the same level as sales. The order intake consequently remained constant at 77.3 million euros (as of December 31, 2007: 77.6 million euros).
The Metrology segment benefited in particular in the 2nd and 3rd quarter 2008 from a revival in the international market for traffic safety technology as well as from the restructured global positioning of the Industrial Metrology division which completed the integration of the French partner Etamic which had been acquired in 2006.
Despite the weak dollar the segment posted an increase in sales of nearly 5 percent to 87.0 million euros (prev. year 82.9 million euros). In the 3rd quarter alone the growth in sales was 24 percent compared with the previous year's quarter. Based on this sales increase and following a negative result of minus 1 million euros in the 1st half-year, as expected, the segment now reported a positive result of 2.0 million euros although, as had been anticipated, it was still unable to repeat the figure achieved in the previous year (prev. year 3.9 million euros). The reason for this is the massive expansion of the Traffic Service Providing in the USA which still has an impact on the result. By contrast, there was a sharp rise of 18.8 percent in the segment's order intake to 105.3 million euros (prev. year 88.6 million euros), corresponding to a book-to-bill rate of 1.21. Major international contracts were won. The order backlog therefore increased to 48.2 million euros or by 60.7 percent (prev. year 30.0 million euros).
2008 will be a record year for the Defense & Civil Systems segment. In 2008 it is benefiting from increased demand for security systems. Sales rose by 18.7 percent to 152.1 million euros (prev. year 128.1 million euros). For the first nine business months the segment posted a leap in the EBIT to 8.7 million euros (prev. year 3.3 million euros) and therefore succeeded in more than doubling the result and increasing it at a clearly higher rate in proportion to sales. The order intake rose by 19.1 percent to 134.4 million euros as against 112.8 million euros for the same period in the previous year. The order backlog fell as a result of the strong growth in sales, to 313.4 million euros (as of December 31, 2007: 332.5 million euros).
The Executive Board of JENOPTIK AG will be providing information on the development of the months January to September 2008 and the outlook for the current fiscal year, today at 11 a.m. as part of a conference call. (Dial: ++49-69 589 990 509).
This announcement can contain forward-looking statements that are based on current expectations and certain assumptions of the management of the Jenoptik Group. A variety of known and unknown risks, uncertainties and other factors can cause the actual results, the financial situation, the development or the performance of the company to be materially different from the announced forward-looking statements. Such factors can be, among others, changes in currency exchange rates and interest rates, the introduction of competing products or the change of the business strategy. The company does not assume any obligation to update such forward-looking statements in the light of future developments.
Sales of the Jenoptik Group for the first nine months rose by 6.1 percent to 397.4 million euros (prev. year 374.7 million euros). Exports accounted for 56 percent of total sales (prev. year 57 percent). The Jenoptik Group continued the positive trend in results achieved in the 1st half-year and posted a significant increase in all key earnings-related figures. Group EBIT (result from operating activities before interest and taxes) rose at a markedly higher rate in proportion to sales by 16 percent to 24.6 million euros (prev. year 21.2 million euros). The positive development of results is attributable to the Defense & Civil Systems segment which was able to significantly increase the EBIT as a result of the increase in sales and a different product mix.
The Group's financial result improved by more than 40 percent to minus 11.3 million euros (prev. year minus 19.1 million euros). This was attributable to the disposal of marginal activities and development themes which offer no future prospects as well as the new financing structure. The early repayment of the high-yield bond in November 2007 resulted in an improvement of the interest result in the total sum of approx. 5.8 million euros as at September 30 this year.
Income taxes increased to 1.4 million euros (prev. year 0.6 million euros) as a result of higher earnings. There was a corresponding increase in the earnings after tax to 10.2 million euros (prev. year minus 2.5 million euros).
Group order intake up by 8 percent.
Despite the marked deterioration in the economic framework conditions the Jenoptik Group succeeded in increasing its order intake in the first nine business months by 8 percent to 398.4 million euros, it was thus at the level of sales (prev. year 368.9 million euros). In the Lasers & Optical Systems segment the "downturn" in the semiconductor equipment industry was reflected in the order intake which was more than offset by growth in the other two segments. The Jenoptik Group order intake, at 438.5 million euros, remained at the same level as in the previous year (as of December 31, 2007: 439.5 million euros).
Continuation of the clearly positive operating cash flow, slight rise in the shareholder's equity quota. Asyst trial finished in favor of Jenoptik.
The reason for the slight fall in the cash flow from operating business activities before income taxes, at 21.0 million euros (prev. year 27.6 million euros) is a stronger rise in the working capital during the course of the year compared with that of the previous year. The shareholder's equity of the Jenoptik Group increased to 288.5 million euros as a result of the profit reported (as of December 31, 2007: 280.9 million euros). During the course of this there was a further increase in the shareholder's equity quota of the Group to the new figure of 41.2 percent (as of December 31, 2007: 40.3 percent).
Jenoptik has a sound financial basis with unused, short-term bank lines at its disposal and long-term liabilities which are predominantly secured independently through real estate. Due to the banking crisis Jenoptik expects that the supply of credits which is expensive for the banks as well as the insecurity in the markets will result in rising interest rates for company credits. In view of the fact that the convertible bond in the nominal sum of 62.1 million euros will mature in July 2009 and therefore has a residual period of less than twelve months, this bond must now no longer be shown under non-current liabilities but current liabilities instead, these consequently increased accordingly for the first time as at September 30 this year. This recategorization will have no impact on the net debt which amounted to 198.3 million euros.
Forecasts reaffirmed for the full year 2008. The Group EBIT is expected to come in at the lower end of the forecast earnings range. The improvement in the interest result will be fully achieved.
Despite the marked deterioration in the economic framework conditions the Jenoptik Group's figures for the first nine months also show positive trends for the operating business:
- The strategic realignment and new organizational structure into five divisions.
- The consistent withdrawal from marginal activities which offer no future prospects in 2007 and the beginning of 2008.
- A continuation of the pick-up in the international market for traffic safety equipment since May this year.
- The positive development of the security and defense technology sector, with the focus on safety and training products.
Despite the marked deterioration in the economic framework conditions the Jenoptik Group is therefore reaffirming the forecasts for the full year 2008. Sales at just under 550 million euros and earnings at 37 million euros, however, will come in at the lower end of the forecasts. This is attributable to the slowdown in economic activity, in particular in the automotive and semiconductor equipment industry. The latter which will leave its mark on the Laser & Optical Systems segment. Jenoptik does not currently foresee any early recovery in the semiconductor sector. The Metrology segment achieved the turnaround in 2008. Following a negative 1st quarter in terms of results, reaching the break-even point in the 2nd quarter as planned and a clear, positive contribution to the EBIT in the 3rd quarter, a further increase in the contribution to the EBIT is expected in the current 4th quarter. In the current 4th quarter the Jenoptik Group will also benefit from a continuation of the very good performance being achieved in the Defense & Civil Systems segment.
The improvement of the interest result by 11 to 14 million euros compared with the previous year, forecast at the beginning of the year, is being also reaffirmed. As planned, the lack of the one-of-effect from the early repayment of the high-yield bond in 2007, the resulting improvement of the interest structure and an on average lower net debt contribute to this improvement.
With regard to the economic framework conditions Jenoptik - like all other companies at present - is faced with a development which is currently very difficult to predict. Risks are created through difficult market conditions for financing and the consequences of this for industrial companies. The semiconductor and automotive industries, two key sectors for Jenoptik, are both experiencing a massive downturn. We anticipate being able to basically offset the consequences of this development for the progress of business over the remaining weeks 2008, but it is not possible at this point in time to provide a complete forecast.
Information on the three segments of the Jenoptik Group.
The development of the Laser & Optical Systems segment, particularly in the 3rd quarter 2008, is characterized by the heightening crisis in the semiconductor sector. However, the segment was able to rely on a very good 1st quarter 2008. In addition, other activities, e.g. the photovoltaics systems of the Lasers & Material Processing division were able to partially offset the fall in the semiconductor market.
Sales of the segment totaled 153.3 million euros and, with 3.9 percent, were just below the figure for the same period in the previous year (prev. year 159.5 million euros). This is attributable to the disinvestments in the 1st half-year 2008 as well as to an accelerating fall in sales with the semiconductor sector. This was the reason why, at 15.0 million euros, the EBIT was down on the level for the previous year (prev. year 16.4 million euros). As in the past however the laser diodes, optics and micro-optics areas of business are making a great contribution to sales and results in the segment. The order intake totaled 153.7 million euros (prev. year 160.7 million euros) and was therefore at the same level as sales. The order intake consequently remained constant at 77.3 million euros (as of December 31, 2007: 77.6 million euros).
The Metrology segment benefited in particular in the 2nd and 3rd quarter 2008 from a revival in the international market for traffic safety technology as well as from the restructured global positioning of the Industrial Metrology division which completed the integration of the French partner Etamic which had been acquired in 2006.
Despite the weak dollar the segment posted an increase in sales of nearly 5 percent to 87.0 million euros (prev. year 82.9 million euros). In the 3rd quarter alone the growth in sales was 24 percent compared with the previous year's quarter. Based on this sales increase and following a negative result of minus 1 million euros in the 1st half-year, as expected, the segment now reported a positive result of 2.0 million euros although, as had been anticipated, it was still unable to repeat the figure achieved in the previous year (prev. year 3.9 million euros). The reason for this is the massive expansion of the Traffic Service Providing in the USA which still has an impact on the result. By contrast, there was a sharp rise of 18.8 percent in the segment's order intake to 105.3 million euros (prev. year 88.6 million euros), corresponding to a book-to-bill rate of 1.21. Major international contracts were won. The order backlog therefore increased to 48.2 million euros or by 60.7 percent (prev. year 30.0 million euros).
2008 will be a record year for the Defense & Civil Systems segment. In 2008 it is benefiting from increased demand for security systems. Sales rose by 18.7 percent to 152.1 million euros (prev. year 128.1 million euros). For the first nine business months the segment posted a leap in the EBIT to 8.7 million euros (prev. year 3.3 million euros) and therefore succeeded in more than doubling the result and increasing it at a clearly higher rate in proportion to sales. The order intake rose by 19.1 percent to 134.4 million euros as against 112.8 million euros for the same period in the previous year. The order backlog fell as a result of the strong growth in sales, to 313.4 million euros (as of December 31, 2007: 332.5 million euros).
The Executive Board of JENOPTIK AG will be providing information on the development of the months January to September 2008 and the outlook for the current fiscal year, today at 11 a.m. as part of a conference call. (Dial: ++49-69 589 990 509).
This announcement can contain forward-looking statements that are based on current expectations and certain assumptions of the management of the Jenoptik Group. A variety of known and unknown risks, uncertainties and other factors can cause the actual results, the financial situation, the development or the performance of the company to be materially different from the announced forward-looking statements. Such factors can be, among others, changes in currency exchange rates and interest rates, the introduction of competing products or the change of the business strategy. The company does not assume any obligation to update such forward-looking statements in the light of future developments.
