Garbsen, Germany & Portland, Ore. – With a boost in earnings of 149%, LPKF Laser & Electronics AG produced its best performance to date in the 2010 financial year. LPKF boosted revenue in 2010 by 60% to Euro 81 million.
The level of incoming orders rose from Euro 56 million (2009) to Euro 79 million. Earnings before interest and tax (EBIT) climbed from Euro 7 million to Euro 17 million – with a corresponding rise in the return on sales from 14% to 21%. The Group generated revenues of Euro 20 million in the fourth quarter, producing an EBIT of more than Euro 2 million.
The 2010 financial year was characterized by a number of major orders with a total volume of Euro 14 million in the Cutting & Structuring Lasers segment. "Although laser direct structuring systems once again played a major role, almost all the other segments played a part in the enormous growth, too," said CEO Dr. Ingo Bretthauer, explaining the background to the business performance at the mechanical engineering company’s balance sheet press conference.
The robust balance sheet the company has enjoyed in the past remains almost unchanged with an equity ratio of 71%. The investment in property, plant, equipment, and intangible assets doubled from Euro 4 million to Euro 8 million; and the company was able to finance these projects from cash flow. Cash flow from operating activities rose from Euro 11 million to Euro 13 million; the free cash flow was Euro 6 million (previous year Euro 8 million) despite the strong rise in investments.
After the record-breaking 2010 financial year, the Management Board is optimistic about the future, said a company release. If the global economy continues to develop positively, the Management Board forecasts that revenue in 2011 for the LPKF Group will be similar to that in the previous year. The internal structures will be significantly enlarged in 2011 due to company expansion and will give rise to a corresponding increase in operating costs. The EBIT margin is therefore expected to lie between 15 and 19% in 2011. Bretthauer sees opportunities for growth in business arising from major orders, but it has yet to be incorporated in the current forecasts.
If the economic background remains stable, the Management Board forecasts an average growth in revenues of around 10% per year and a slight rise in EBIT margin for the 2012 and 2013 financial years. In line with the company's forecast, it announced a major order for laser systems used for the production of solar panels, worth almost EUR 7 million, which will be reported in the revenue of the current financial year.
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