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Jenoptik remains on road to success after nine months

· Revenue increased sharply by 16.1 percent to 487.7 million euros
· EBITDA rose to 63.8 million euros; EBIT margin at 9.1 percent slightly up on prior year
· Considerably improved free cash flow of 28.6 million euros
· 2015 guidance confirmed: Group revenue between 660 and 680 million euros; EBIT margin of at least 9 percent
The Jenoptik Group continued on its road to success in the first nine months of the year. The third quarter, in particular, saw sharp increases in revenue and earnings. ?We are on the right path and firmly convinced that we will reach our targets for the 2015 fiscal year. Revenue is expected to be between 660 and 680 million euros, with an EBIT margin of at least 9 percent. We are also anticipating a disproportionate rise in EBITDA compared to the prior year,? said Michael Mertin, Jenoptik?s President & CEO.
Sharp increase in revenue and earnings with solid order situation
In the first nine months of 2015, the Jenoptik Group posted record revenue of 487.7 million euros, an increase of 16.1 percent on the prior year (prior year 420.1 million euros). At 171.5 million euros, the revenue recorded in the third quarter was also the highest in a quarter to date. Growth was seen in all three segments. On a regional level, revenue increased most strongly in Europe (excluding Germany), primarily due to acquisitions in the past year. In the Americas, too, greater demand for optical systems, settlements relating to major projects and currency effects all contributed to a marked increase in revenue.
In the first nine months of 2015, Jenoptik?s earnings before interest, taxes, depreciation and amortization (EBITDA) showed a disproportionate rise of 18.0 percent to 63.8 million euros (prior year 54.1 million euros). Group operating result (EBIT) also increased more than 17 percent, to a new record of 44.3 million euros (prior year 37.8 million euros). This allowed the Group to improve the high quality of earnings of the first half-year. Earnings in the period covered by the report were positively influenced by a changed revenue mix and the settlement of a major project in the Defense & Civil Systems segment. The EBIT margin of 9.1 percent was slightly up on the prior-year level (prior year 9.0 percent).
Higher EBIT and an improved financial result also boosted earnings before tax to 41.3 million euros (prior year 33.1 million euros). Earnings after tax grew to 34.1 million euros, up on the prior-year figure of 28.2 million euros.
In the first nine months of 2015, the Jenoptik Group?s order intake rose 7.2 percent, to 479.0 million euros (prior year 446.7 million euros). The order backlog was below the comparative figures in the prior year (31/12/2014: 422.5 million euros; 30/09/2014: 436.9 million euros), at 403.2 million euros, around 37 percent of which is still due to be recognized as revenue in the current fiscal year.
The number of employees in the Jenoptik Group changed only marginally, to stand at 3,542 on September 30, 2015 (31/12/2014: 3,553).
Excellent asset position and viable financing structure
Thanks to good cash flows and despite both the dividend payout and the payment made to the last remaining silent real estate investor at the beginning of the year, net debt fell to 90.4 million euros on September 30, 2015 (31/12/2014: 92.1 million euros).
Higher earnings before tax and less changes in working capital had a positive effect on cash flows from operating activities, which came to 33.5 million euros as of September 30, 2015, considerably above the prior year?s figure of 10.8 million euros. The free cash flow markedly improved to 28.6 million euros (prior year minus 2.7 million euros).
The Jenoptik Group?s equity ratio also increased sharply to 55.7 percent (31/12/2014: 50.1 percent). Together with the issued debenture loans and the syndicated loan, Jenoptik has a viable financing structure.
Defense & Civil Systems segment is main driver of revenue and earnings
Revenue in the Lasers & Optical Systems segment grew steadily throughout the year. It came to 183.2 million euros for the first nine months of 2015, equating to a year-on-year increase of 6.4 percent (prior year 172.2 million euros). Business with laser machines and optoelectronic modules developed particularly well; demand from the semiconductor equipment industry also slightly picked up. In the third quarter, the segment saw a sharp increase in earnings compared to the prior year, albeit not enough to compensate for the weaker figures in the first half-year: at 17.7 million euros, income from operations (EBIT) was 13.4 percent lower (prior year 20.4 million euros). In the last year the result was positively influenced by the sale of a system technology in the laser area. The segment order intake, at 180.6 million euros, was below the level in the prior year (prior year 186,0 million euros) and also lower than revenue in the period covered by the report. This produced a slight fall in the order backlog, which was worth 98.8 million euros at the end of September 2015 (31/12/2014: 100.8 million euros).
The slight upswing in investment seen in the automotive industry for Jenoptik products produced a further year-on-year increase in revenue in the Metrology segment in the third quarter. In the first three quarters of 2015, revenue in the segment rose 16.5 percent to 148.8 million euros (prior year 127.7 million euros). Both industrial metrology and traffic safety technology contributed to its growth, with acquisitions in the latter area particularly boosting revenue in Europe by 29.5 percent. The segment EBIT fell to 12.5 million euros (prior year 14.7 million euros). This fall is partly due to ongoing challenging market conditions in the US traffic safety sector and depreciation effects arising from the acquisitions. The segment?s order intake increased significantly to 159.6 million euros (prior year 126.2 million euros). At 78.5 million euros, the order backlog was marginally above the figure at the end of the prior year (31/12/2014: 77.2 million euros).
Thanks to the good development of the energy and sensor systems business, the Defense & Civil Systems segment was able to increase its revenue in the first nine months of 2015 by 31.8 percent, to 154.7 million euros (prior year 117.3 million euros). Compared to the same quarter in the prior year, revenue rose sharply, by 47.8 percent; it includes a substantial portion of the major order to equip the Patriot missile defense system. With greatly improved revenue and a higher margin in the product mix, the segment?s EBIT grew from 0.4 million euros in the prior year to a figure of 12.4 million euros. In the period covered by the report, the order intake totaled 138.7 million euros, 6.0 percent above the figure for the prior year (prior year 130.9 million euros) but below revenue in the current period. The segment?s order backlog fell to 228.1 million euros (31/12/2014: 245.9 million euros).
Forecast range for 2015 has been narrowed
In the light of a good development of business in the first nine months, the Jenoptik Executive Board has narrowed its guidance for the present fiscal year, with group revenue expected to come in at between 660 and 680 million euros and an EBIT margin of at least 9 percent. The Executive Board is anticipating a disproportionate rise in EBITDA compared to the prior year.
The quarterly report will be available at http://www.jenoptik.com/en-interim-documents. Visuals can be retrieved from the image database in the Pictures / Financial Reports gallery.
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