LPKF continues to grow profitably

In the first half of 2019, LPKF Laser & Electronics AG increased its revenue by 24 % year-on-year to EUR 72.7 million. All four segments of the Group contributed to this development. The Solar (plus 34 %) and the Electronics segments (plus 30 %) recorded the strongest growth.

The technology group's earnings figures reflect this positive development. Earn-ings before interest and taxes (EBIT) amounted to EUR 10.1 million after six months, corresponding to an EBIT margin of 14 %. EBIT thus more than quadru-pled compared to the same period of the previous year.

Goetz M. Bendele, CEO of LPKF, sees the company on a very good course: "The operational measures to improve sales and reduce working capital continue to have meaningful impact. With now five consecutive profitable quarters LPKF has returned to a position of sustained profitability.”

Net debt, which amounted to EUR 42.7 million as of 30 June 2018, was complete-ly eliminated in the second quarter. "We have restored LPKF’s full capability to act as a technology company, and we can now realize on our own those investments necessary for further growth”, says Bendele.

While revenue and earnings increased significantly in the first half of the year, the trend in incoming orders was weaker. At EUR 45.8 million, incoming orders were down on the previous year's figure of EUR 71.9 million; orders on hand amounted to EUR 31.4 million as at 31 June 2019 (previous year: EUR 52.1 million).

The Management Board believes that market demand for LPKF's solutions and services continues to be strong and confirms the guidance for the current financial year.

Subject to stable growth in the global economy, the Management Board estimates consolidated revenue of between EUR 130 million and EUR 135 million and an EBIT margin of between 8% and 12% in 2019. This corresponds to a ROCE of between 10% and 15%. Based on the current order position, the Management Board expects revenue of between EUR 28 million and EUR 33 million in the third quarter of 2019 and an EBIT margin of between 8% and 12%.

Over the coming years, the Management Board wants to further increase the company’s profitability and generate a sustainable EBIT margin of more than 12%.

The complete quarterly financial report can be downloaded here.

 

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