In This Article:
Release Date: November 12, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Jenoptik AG (JNPKF) confirmed its revenue and profit targets for the fiscal year 2024, indicating strong performance in line with expectations.
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The semiconductor business has seen stable demand, avoiding any significant downturns.
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The company reported a 6% increase in revenue for the first nine months of 2024, driven by organic growth.
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EBITA grew substantially, with a margin improvement of over 100 basis points, mainly due to scale effects.
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The dental surgery optics business is performing well, with demand exceeding supply, highlighting a strong growth area.
Negative Points
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Order intake decreased by 6% year over year, with significant declines in the North American and German automotive markets.
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The company postponed its midterm strategic targets by one year, now aiming for 2026 instead of 2025.
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Smart mobility margins declined due to investments in sales channels and R&D, despite stable revenue.
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The semiconductor market did not experience the anticipated growth, impacting future projections.
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The company faces uncertainties related to political developments in North America, affecting the Prodomax business.
Q & A Highlights
Q: Can you provide more color on your expectations for 2025, given the current market conditions and your strategic targets? A: (Unidentified_2) We are not providing specific guidance for 2025 at this point due to many moving parts, including political developments in North America. However, we do not anticipate a double-digit decline and expect a transition year with some growth, albeit below original expectations.
Q: Regarding the transition to the new plant in Dresden, what is the expected impact on costs and operations? A: (Unidentified_2) The transition will incur costs in Q4 this year and Q1 next year, with some double costs due to rented facilities. The move is on time and on budget, but there will be a slight increase in operating costs due to the larger facility.
Q: How might potential tariffs on imported cars in the US impact Prodomax's business? A: (Unidentified_2) The impact is uncertain and could be either positive or negative. Prodomax is located in Canada, and tariffs could lead to OEMs increasing capacity in North America, but the exact effects are unclear at this time.
Q: What is the current status of your smart mobility business, particularly in terms of headcount and order intake? A: (Unidentified_2) The headcount increase is not solely in North America but also in R&D. We have been cautious with large tenders but are now more stable and ready to pursue bigger deals. Order intake has been stable, with some recent wins.