11/11/2015 08:00:13
LPKF: Weak LDS business puts strain on performance in 2015
DGAP-News: LPKF Laser & Electronics Aktiengesellschaft / Key word(s):
9-month figures/Quarter Results
2015-11-11 / 08:00
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Development of new technologies is being pursued with great intensity
The Management Board expects renewed profitable growth from 2016
Garbsen, 11 November 2015 - LPKF today announced that the weakness of its
laser direct structuring (LDS) business put a considerable strain on the
LPKF Group's overall business performance in the third quarter. At EUR 61.6
million, revenue in the first nine months remained below the previous
year's figure of EUR 79.4 million. The EBIT margin of -8.7% was
considerably lower than in the previous year (9.6%). The operating income
(EBIT) fell to EUR -5.3 million. The Management Board now expects
consolidated revenue for the full 2015 financial year to amount to EUR 85
million - EUR 90 million (previous guidance: EUR 90 million - EUR 110
million). According to this, EBIT is expected to be negative in the
single-digit million range.
Because of the weak business performance, LPKF made every effort in the
current year to lower costs and thereby push its break-even point
downwards. In this context, LPKF took the conscious decision to make only
slight reductions to its workforce. "Our employees are to a large extent
the key to our ability to innovate and are thus a decisive factor for
ensuring new growth over the coming years," says Ingo Bretthauer, CEO of
LPKF AG.
Revenue in the Electronics Development Equipment segment remains slightly
below expectations after nine months.
In the Electronics Production Equipment segment, LPKF's largest product
group, LDS equipment, has seen revenue after nine months drop almost 70%
year on year. Incoming orders also failed to improve during the third
quarter. Bretthauer nevertheless remains optimistic for this product group
as well: "Of course, given our experience in the current year, we will be
very cautious in our 2016 planning, especially for the LDS business. That
said, we expect the LDS business to settle at a solid level of revenue in
the medium term. While the StencilLaser Equipment product group failed to
meet expectations, the PCB Production Equipment product group turned in a
surprisingly positive performance in the first nine months of this year.
Business with circuit board cutting systems has currently increased by over
100% year on year. The outlook for the year to come is also positive in
this product group.
Development for new products is making good progress according to the
Company. The first machine for the Through Glass Via (TGV) process, which
is used to create ultrafine holes in glass, is on schedule to be delivered
to a customer before the end of the year. LPKF expects that this brand new
business will slowly start to gather momentum in the course of 2016.
In Other Production Equipment, the solar business after nine months is well
below the level for the prior-year period, which was strongly influenced by
a major order. The drop in revenue for the current year was planned,
however, and is therefore unsurprising. There is every indication of
profitable growth for the years to come. Business with plastic welding
systems is 8% higher year on year, however, and is expected to continue its
positive performance in 2016.
The newly developed Laser Transfer Printing (LTP) process for the digital
printing of pastes offers a truly novel alternative to the widespread
method of screen printing. The first machine is to be delivered to a
customer in the first half of 2016. "This is another field of business we
want to expand continuously in the second half of 2016. There is enormous
potential for supplanting specific industrial screen printing applications
with LTP," says Bretthauer.
For the 2016 financial year, the Management Board expects revenue to
increase to EUR 100 million - EUR 120 million within a stable economic
environment. The EBIT margin is expected to reach a positive single-digit
figure. The Company expects to see growth in all segments. New products are
anticipated to provide significant momentum. In the years to come, LPKF
will once again aim for targets of average annual revenue growth of at
least 10% and a double-digit EBIT margin.
The full quarterly report is available in German at
www.lpkf.de/investor-relations/news-publikationen/finanzberichte/index.htm
and in English at
www.lpkf.com/investor-relations/financial-reports/index.htm.
About LPKF
LPKF Laser & Electronics AG specializes in the production of laser systems
for micro material processing and is the world leader in several sectors.
Founded in 1976, the Group has its headquarters in Garbsen near Hannover in
Germany and does business around the world through subsidiaries and
representatives. LPKF has 791 employees. The shares in LPKF Laser &
Electronics AG are traded on the TecDAX index of the Frankfurt Stock
Exchange (ISIN 0006450000).
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Language: English
Company: LPKF Laser & Electronics Aktiengesellschaft
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
End of News DGAP News Service
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