DGAP-News: LPKF Laser & Electronics AG / Key word(s): Final Results

2015-03-24 / 08:01

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Garbsen, 24 March 2015 - Laser specialist LPKF, which has been no stranger
to success in the past, has come through a difficult financial year. A low
volume of incoming orders in the Electronics Production Equipment segment
coupled with the postponement of a major LDS project resulted in revenue of
EUR 120 million, corresponding to a year-on-year decline of 8%. While EBIT
fell by 45% to EUR 13 million, the company nonetheless achieved an
impressive EBIT margin of no less than 11%. Despite a very strong fourth
quarter revenue of EUR 40 million and an EBIT margin of 13%, LPKF just
managed to achieve the reduced forecast for 2014 announced in October.

LPKF CEO Dr. Ingo Bretthauer: "This is clearly an unsatisfactory result for
LPKF. We had originally planned to achieve a lot more during 2014, but weak
incoming orders in two of our six product groups simply turned these plans
upside down." Economic difficulties affecting end customers in South Korea
and a lack of bulk orders for PCB Production Equipment were the main
reasons for the decline in revenue.

In the Other Production Equipment segment, revenue rose by 31% and profit
by 48%. Here, the phenomenal strength of the solar system business was more
than able to compensate for the weaker performance in Welding Equipment.
Revenue with plastic welding systems remaining on par compared to the
previous year and did not meet the expectations.

The Electronics Development Equipment segment easily exceeded expectations,
however, with revenue up by 20%. The expansion of the product portfolio to
include new laser-driven systems for electronic development boosted revenue
while also significantly improving profits and ensuring an EBIT margin of
11%.

Overall, however, these successes were unable to compensate for the decline
in the laser direct structuring (LDS) business in 2014, thus forcing the
company to accept its first drop in revenue for 11 years. Despite the
weaker business performance in 2014 Ingo Bretthauer and his fellow
Management Board members now look confidently to the future. "Our growth
drivers in the markets are intact, our company continues to be very
profitable, and we are developing highly attractive new technologies," says
Bretthauer.

In 2015, LPKF will launch no less than three entirely new laser-based
methods intended to stimulate growth from 2016 onwards. Extending the
underlying LDS technology, these include a coating process to enable the
application of heavy-duty metal layers to plastic substrates, a digital
laser printing method for functional pastes and a laser-driven ultra-fine
glass drilling process for use by chip makers.

Growth is also expected in LDS itself, however. LPKF is working hard on
reducing the cost of the entire process to make it even more cost effective
for customers. The company sees the wearables and LED markets as offering
particular potential.

A return to growth is expected in 2015, albeit at a more moderate tempo.
Assuming a stable economic environment, LPKF expects to achieve revenue of
EUR 128 to 136 million and an EBIT margin of 12% to 15% in 2015. Given the
current situation with orders and projects, this is considered an ambitious
plan. "We see 2015 as a transition year - and one offering its own unique
challenges," says Bretthauer.

In the years to come, LPKF plans to return to its usual path of continuous
growth, boosting average earnings by at least 10% while achieving an EBIT
margin of 15% to 17%.

In light of the modest outlook for the current financial year, the
Management and Supervisory Boards recommend that the Annual General Meeting
to be held in Hannover on 28 May 2015 adopts a dividend of EUR 0.12 per
share (previous year: EUR 0.25).

The full annual report is available in German at
www.lpkf.de/investor-relations/finanzberichte/index.htm and in English at
www.lpkf.com/investor-relations/financial-reports/index.htm.



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Language:    English                                                    
Company:     LPKF Laser & Electronics AG                                
             Osteriede 7                                                
             30827 Garbsen                                              
             Germany                                                    
Phone:       +49 (0) 5131 7095-0                                        
Fax:         +49 (0) 5131 7095-95                                       
E-mail:      investorrelations@lpkf.com                                 
Internet:    www.lpkf.com                                               
ISIN:        DE0006450000                                               
WKN:         645000                                                     
Listed:      Regulated Market in Frankfurt (Prime Standard); Regulated  
             Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich,  
             Stuttgart                                                  
 
 
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