LPKF Laser & Electronics : takes stock after positive first half year

After three months as the new CEO of LPKF Laser & Electronics AG, Goetz M. Bendele takes stock: in Bendele's view, the highly specialized laser machine manufacturer is well under way on its path towards sustained profitability.
For the second quarter, the LPKF Group's revenue has reached EUR 38.7 million and was thus significantly higher than the previous year's figure of EUR 20.3 million. For the first half-year, revenue has reached EUR 58.4 million, an increase of 30 % over the previous year. In particular, sales of systems for structuring solar modules have developed strongly, more than tripling in revenue.

Incoming orders and orders on hand have also shown a positive development. At EUR 71.9 million, incoming orders after six months were 15% higher than the previous year's figure. Orders on hand as of June 30, 2018 were EUR 52.1 million, 14% higher than the previous year's figure.

The significantly higher sales in the second quarter have generated positive earnings before interest and taxes (EBIT) not only for the quarter but also for the half-year. EBIT has reached EUR 4.6 million in the second quarter and has amounted to EUR 2.3 million after six months, compared to a loss (EBIT) of EUR 2.7 million for the first half of 2017. Earnings figures for the first half of 2018 include restructuring costs of EUR 1.3 million (previous year: EUR 0.2 million).

The increase in sales includes purchased components worth approx. EUR 5.0 million, which were resold at lower margins. In July, the Management Board raised the sales guidance for the current year 2018 due to these higher than expected component sales. The EBIT guidance remains unchanged.

For 2018, assuming a stable development of the global economy, the Management Board expects consolidated sales of between EUR 110 million and EUR 115 million (previously: EUR 103 million and EUR 108 million) and an unchanged return on capital employed (ROCE) of between 2 and 7%, corresponding to an EBIT margin of up to 6%.

'The strong second quarter is by far the highest revenue quarter in over three years and an important step on LPKF's path towards profitable growth,' says Bendele. Bendele says, however, that this goal has not yet been achieved and that the Management Board will continue to work hard towards it and at the same time towards further accelerating longer-term growth, particularly through new technologies.

The complete half-year financial report is available at www.lpkf.com/investor-relations/news-publications/financial-reports