DGAP-News

Renewed growth expected for LPKF in 2015 following revision of 2014 forecast

DGAP-News: LPKF Laser & Electronics AG / Key word(s): 9-month
figures/Quarter Results
Renewed growth expected for LPKF in 2015 following revision of 2014
forecast

12.11.2014 / 08:00

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Garbsen, 12 November 2014 - Specialist mechanical engineering company LPKF
Laser & Electronics AG today announced revenue of EUR 80 million (previous
year: EUR 99.5 million) for the first nine months of the current financial
year. Earnings before interest and taxes (EBIT) after nine months were EUR
7.6 million. This corresponds to an EBIT margin of 10% as of 30 September.
Positive signs are evident in terms of incoming orders and orders on hand,
which were up significantly year-on-year, at 17% and 96%, respectively.

After having experienced average annual growth of 23% over the past five
years, in October 2014 the TecDAX company had to adjust its annual profit
forecast downwards for the first time in six years and prepare its
investors for lower revenue and earnings in 2014. The key reasons for the
revision were a recent decline in incoming orders and the postponement of a
major project in the Laser Direct Structuring (LDS) business. LPKF believes
that the customer restraint is mainly attributable to faltering global
growth and the resulting uncertainty in the electronics industry.
Based on the new forecast, LPKF now anticipates revenue in the range of EUR
120 million - EUR 125 million (previously: EUR 132 million - EUR 140
million) and an EBIT margin of 10% - 12% (previously: 15% - 17%) for 2014.
While Chief Executive Officer Dr. Ingo Bretthauer is not satisfied with
business performance in the current year, he sees no reason for serious
concern: "Our growth drivers in the markets are intact, company financing
is solid and profitability remains above-average, despite the revenue
downturn," said Bretthauer. "We are developing exciting new products and
methods and want to return to our path of growth next year."

The Management Board expects renewed growth in the 2015 financial year.
Revenue in 2015 is estimated at EUR 128 million - 136 million while the
EBIT margin is estimated at 12% - 15% and should therefore once again
converge on the intended range of 15% - 17%. In the following years, LPKF
continues to expect revenue growth at an annual average of at least 10%,
accompanied by an EBIT margin of 15% - 17%. This forecast is conditional on
a stable economic environment.

The full quarterly report is available in German at
www.lpkf.de/investor-relations/news-publikationen/finanzberichte and in