Jenoptik results boosted by photonics focus

04 Apr 2007

A renewed focus on lasers and photonics helped the Jenoptik Group to post substantial increases in both sales and earnings for 2006.

Sales from the new Jenoptik Group, which restructured last year to focus on its photonic activities, increased by 18.3% to €485.1 million in 2006. Earnings under the EBIT system (earnings before interest and taxes) from operating activities rose by 52.2% to €38.2 million. "In 2006 we fulfilled all the commitments we gave, and in some cases have exceeded our forecasts," said chairman Alexander von Witzleben.

The Laser & Optics division was the engine for growth during the year, driven in particular by sales of high-power diode lasers and high-performance optics. The division's sales of €199.2 million were up from 149.7 million the previous year, accounting for approximately 40% of total Jenoptik sales. The division's earnings rose by 14.6% to €15.3 million.

According to Witzleben, the key factors behind the increase in sales and earnings were positive economic development plus competitive advantages in individual markets. More than 50% of the €75 million overall rise in sales came from organic growth, with €25 million of the growth reported for Lasers & Optics also attributed to organic growth. Jenoptik generated approximately 57% of its total sales outside Germany.

The other divisions in the restructured company focus on Sensors and Mechatronics, which both also posted healthy increases compared to the equivalent divisions last year. Sensors posted a 12.6% rise in sales to €153.2 million, and Mechatronics produced sales of €127.0 million, a rise of 8.1%.

Jenoptik predicts a bright 2007, with sales forecast to reach between €510 and 535 million, and market success primarily driven by their research and development effort. The focal areas for R&D include the EUV (extreme ultraviolet) beam source for future chip technologies, and laser material processing.

Jenoptik also plans to make some smaller acquisitions, as part of a strategy to continue to increase sales by an average of 10% per annum. "In 2007 we will continue to orientate Jenoptik towards its customers and markets," commented Michael Mertin, chairman-elect. "Over the long term Jenoptik will once again become a billion euro group. This remains our goal."