Rofin Sinar reveals mixed results

17 Jun 2002

Industrial laser manufacturer Rofin Sinar announces fair fourth quarter results but predicts tough times ahead.

German company Rofin Sinar has achieved what it calls respectable fourth quarter sales despite the market downturn. Overall sales are down just 6.2% to USD 54.4 million year-on-year, while profit margins dropped by 7 %.

Sales across Rofin Sinar's laser products were mixed. Sales of cutting and welding lasers increased by 2.7% to USD 28.1 million compared to USD 27.3 million in the fourth quarter of last year, whereas marking and micro applications plummeted by 14.1% to USD 26.3 million.

"While we achieved record results during the first three quarters of the fiscal year, the fourth quarter was more challenging due to difficult market conditions," said Peter Wirth, chief executive of Rofin Sinar. "Losses in our US marking operation and an adverse tax structure led to a net loss in this quarter."

The results also revealed that worldwide sales varied dramatically. European sales were down by only 2.9% year-on-year, whereas US sales dropped by 16%.

Wirth also warned that the company expects to hit hard times in its next quarter. "Based on our backlog, anticipated new bookings and uncertainty in the worldwide economic situation, we believe next quarter sales will be lower," he said.

To cut costs, the company will cut weekly working hours at marking divisions by at least 20% and extend plant shutdowns over Christmas by an extra week.