Coherent forecasts gloomy future

17 Jun 2002

Coherent and subsidiary Lambda Physik report increased sales but anticipate a decline next year.

Laser manufacturer Coherent, US, has estimated that its sales will decline 10 to 15% during the first quarter of 2002. The announcement follows a 7% increase in sales to USD 115.5 million during its fourth quarter compared to the same period last year.

Coherent's German subsidiary Lambda Physik (LP), which makes excimer lasers, is also predicting a slump after record sales of EUR 137 million in fiscal year 2001. It expects a 25% decline in sales for fiscal year 2002.

"While we are encouraged with many facets of our financial performance during the fourth quarter, our incoming order rate during the period reflects an uncertain economy," said Coherent's president Bernard Couillaud.

To counter the effects of the decline, the company has scheduled six shutdown days in the next quarter and three shutdown days in the quarter thereafter.

The global workforce has also been reduced by 7% in the recently completed quarter.

"We will continue to make every effort to manage our levels of spending and investments in order to secure our position in the markets we serve," Couillaud added.

LP has implemented a comprehensive seven-point cost-reduction program to compensate for the predicted decline. This includes reducing its workforce and concentrating production at the Göttingen site in Germany.

Chief financial officer Jürgen Heukäufer will also leave the company as of the 31st December 2001.

The anticipated decline has been blamed on an abrupt weakening in the semiconductor and lithography business.