© designersart Business | August 11, 2016

Revenue rose by 3.4 percent for Jenoptik

The Jenoptik Group ended the first half of 2016 as well as expected, with strong performance in terms of revenue, earnings and cash flow.
“Over the first six months of 2016, we successfully pushed on with our course of profitable growth. The Group’s interdisciplinary technological expertise, strong position on the domestic market and increasing internationalization enabled growth in line with the business figures we set out to achieve. Jenoptik’s strict focus on megatrends and target markets, improved cost management and healthy financial footing all served to make this possible,” said Jenoptik President & CEO Michael Mertin.

Revenue up 3.4 percent, group EBITDA, EBT and EPS improved faster than revenue

In the first six months of 2016, Jenoptik’s revenue rose by 3.4 percent to EUR 326.8 million (prior year EUR 316.1 million). This was also the highest revenue posted by the company for a first half-year in recent years. In addition, development of business in the prior year was influenced by positive currency effects. A major contributor to growth was the increased demand seen in the defense technology, IT and communications technology, and automotive industries. Revenue was boosted in Germany, Europe and Asia/Pacific.

After generating EUR 9.8 million in the first quarter of 2016, the Group increased EBIT to EUR 17.6 million in the second quarter. In the six-month period, earnings improved 2.8 percent to EUR 27.3 million (prior year EUR 26.6 million). In the prior year, the operating result was also influenced by markedly positive currency effects. The EBIT margin in the first half-year was 8.4 percent, the same as in the prior year (prior year 8.4 percent).

In the reporting period, earnings before interest, taxes, depreciation and amortization (EBITDA) rose at a faster rate than revenue, by 5.9 percent to EUR 41.0 million (prior year EUR 38.7 million). The financial result improved over the course of the first half-year to minus EUR 1.4 million (prior year minus EUR 1.9 million). Altogether, the Group managed to increase its earnings before tax (EBT) by around EUR 1.2 million on the prior year, to EUR 25.9 million. After taxes, this resulted in earnings per share (EPS) improving a significant 11.2 percent to EUR 0.39 (prior year EUR 0.35).

At EUR 319.4 million, the order intake remained 4.3 percent below the prior-year figure (prior year EUR 333.7 million) in the first six months of 2016. This item had included a major order in the Defense & Civil Systems segment in the prior year. In addition, the long-term major orders for traffic monitoring equipment in Canada and Australia, both in the mid double-digit million euro range, were not recorded in the order intake for the first half-year. The book-to-bill ratio was 0.98 (prior year 1.06). The order backlog was worth EUR 360.2 million as of June 30, 2016 (31/12/2015: EUR 373.4 million). The Group also had contracts worth EUR 25.9 million that are not included in the order backlog.

As of June 30, 2016, the Jenoptik Group employed 3'512 employees around the world (31/12/2015: 3'512 employees). The number of employees abroad rose to 660 from 629 on December 31, 2015. At present, 18.8 percent of the workforce is thus employed abroad (31/12/2015: 17.9 percent).

Optics & Life Science as well as Defense & Civil Systems are driving growth; good order backlog in Mobility

The Optics & Life Science segment saw good growth in the first half-year of 2016, with revenue coming to EUR 108.1 million, 2.8 percent up on the prior year (prior year EUR 105.1 million). EBIT grew sharply, by 29.2 percent to EUR 13.3 million (prior year EUR 10.3 million). In the six-month period, the EBIT margin was 12.3 percent, in part due to good business with high-performance optics (prior year 9.8 percent).

The order intake rose 18.3 percent to EUR 113.6 million (prior year EUR 96.0 million). Encouraging growth in the order situation predominantly originated in increased demand from the medical technology sector. The order backlog as of the end of June 2016 was worth EUR 74.2 million (31/12/2015: EUR 73.7 million). Furthermore, the segment had additional contracts worth EUR 17.2 million that were not included in the order backlog.

In the first six months of 2016, the Mobility segment generated revenue of EUR 109.0 million, slightly down on the prior-year figure (prior year EUR 113.0 million). There was good demand from the automotive industry, but as expected, revenues relating to traffic safety developed only moderately, in part due to a lack of investment by oil-exporting countries. At EUR 7.1 million, the segment EBIT mirrored revenue performance and was EUR 0.4 million down on the prior year.

The EBIT margin was 6.5 percent, the same level as in the prior year (prior year 6.6 percent). The order intake fell to EUR 128.0 million (prior year EUR 142.5 million), but does not include current orders from Canada and Australia. Compared to the figure at year-end 2015, the order backlog improved by 19.9 percent to EUR 111.1 million (31/12/2015: EUR 92.7 million). In addition, the segment had contracts worth EUR 8.7 million.

In the first half-year of 2016, revenue in the Defense & Civil Systems segment grew sharply, as scheduled, by 11.9 percent to EUR 111.6 million (prior year EUR 99.7 million). This was mainly due to good development in the fields of energy and aviation systems, and in the service business. The segment EBIT improved 52.1 percent to EUR 9.2 million (prior year EUR 6.1 million), predominantly the result of good revenue growth and a high-margin product mix. The order intake fell 17.7 percent to EUR 80.2 million (prior year EUR 97.4 million). In the prior year, this item had included a major order to equip the Patriot missile defense system. The order backlog was further reduced and was worth EUR 178.0 million at the end of the reporting period (31/12/2015: EUR 209.7 million).

2016 guidance confirmed

Following good development of business as scheduled in the first half-year of 2016, the Jenoptik Executive Board has firmed up the guidance it published in March. It anticipates group revenue of between EUR 680 and 700 million for 2016, compared to EUR 668.6 million in the prior year. Group EBIT is also due to rise moderately; depending on revenue, the group EBIT margin will come in at between 9.0 and 9.5 percent. Earnings before tax are expected to develop similarly to EBIT in 2016. This presupposes that political and economic conditions do not worsen and that recent events in Turkey and the UK’s intention to leave the EU (Brexit) do not produce any significant negative impacts. Acquisitions are not included in this forecast but have not been ruled out for the current fiscal year.
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