LPKF Reports 20% Sales Growth in Q2

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Business growth at LPKF Laser & Electronics AG accelerated considerably in the second quarter 2016. Sales grew by almost 20% compared to the same quarter of the previous year, EBIT results were positive at EUR 0.7 million. However, due to a very weak first quarter, sales and EBIT results after six months stayed below the previous year’s figures. Sales in the first half year reached almost EUR 40 million, EBIT stayed negative at EUR -3.7 million.

Orders received in the first half of the year amounted to almost EUR 60 million, almost 40% higher than those received during the first half of the previous year. Orders in hand on the reporting date were over 80% higher than the figures re-ported during the same period of the previous year. The book-to-bill ratio reached a value of 1.5.

The most significant drivers of growth in the first six months included laser systems for plastic welding. A large solar contract for EUR 17 million was a major contributor to the orders received in the second quarter. Orders in the other two segments remained below expectations for the first half of the year.

The announced cost-saving program made good progress in the second quarter. The planned reduction of 100 full-time equivalents in the LPKF-Group is on schedule. Until mid-August a capacity reduction of eighty-six full-time equivalents has been contractually agreed. The Board of Directors therefore believes that the company is in a good position to bring the break-even point for 2017 to below EUR 90 million.

“Despite the continued weakness in LDS business, we have taken a substantial step forward in the second quarter", says Dr. Ingo Bretthauer, CEO of LPKF AG. “Both the sales trends and cost-saving measures are going according to plan. We are confident that we will be able to achieve our goals for 2016 on both fronts.”

For 2016, the Board of Directors expects to achieve sales of EUR 90 to 110 mil-lion and an EBIT margin of between -3% and +6%, if the global economy remains stable. These include estimated restructuring costs of approx. EUR 2 million. For 2017, the board expects an increase in sales and a clearly positive result.

About LPKF

Established in 1976, LPKF Laser & Electronics manufactures milling machines and laser systems used in circuit board and microelectronics fabrication, medical technology, the automotive sector, and the production of solar cells. LPKF’s worldwide headquarters is located in Hannover, Germany and its North American headquarters resides near Portland, Ore.