Healthy growth again recorded in first quarter of 2004/05
Frankfurt/Main, 16.02.2005. The Carl Zeiss Group substantially improved its revenues and earnings in fiscal year 2003/04. Growth was achieved in all important balance sheet entries. Corporate value was significantly increased thanks to positive contributions by all business groups. The business trend was characterized by marked increases in revenue in the Semiconductor Technology and Opto-Electronic Systems Groups. Carl Zeiss AG has further improved its strategic market positions by the implementation of targeted portfolio measures. President and CEO Dr. Dieter Kurz considers the company to be well poised for the future. At the annual press conference held in Frankfurt/Main on February 16, 2005 he stated: "Our new legal form as a stock corporation has made us even more flexible with regard to partnerships and transactions. We have continued to develop our strategy and have focused it even more sharply on growth. With a further rise in net liquid assets to EUR 672 million, we are now in a position to make quick use of any opportunities offered to us. After a pleasing first quarter, we look toward the current fiscal year with confidence."
Further growth of nine percent was achieved in the first three months of fiscal year 2004/05. With the exception of business with ophthalmic products, which reported an exceptional level of demand at the end of 2003 due to healthcare reforms in Germany, a further rise in revenues was achieved in all business groups. "A major impetus for growth was provided by industrial business. Gains were recorded not only in the dynamic Semiconductor Technology business, but also in Opto-Electronic Systems and Industrial Metrology," Kurz continued.
Successful 2003/04 year
In fiscal year 2003/04 (ended September 30), the Carl Zeiss Group generated revenues totaling EUR 2.135 billion, an increase of five percent over the previous year's figure (EUR 2.029 billion). After adjustment for currency effects – primarily due to the US dollar and the Japanese yen – this increase would have totaled eight percent. The volume of sales generated outside Germany increased by two percentage points to 80 percent. The largest growth in sales was posted by the Semiconductor Technology Group with an increase of 25 percent. Considerable growth was also recorded by the Opto-Electronic Systems Group with a rise of 17 percent over last year.
With a volume of EUR 2,234 million, an increase of 13 percent over last year, incoming orders showed an even stronger trend than revenue.
Strong improvement in earnings
The favorable business trend led to a marked improvement in earnings. Virtually all business groups increased their contribution to the overall operating result of the Carl Zeiss Group. The Carl Zeiss Group recorded an overall operating result of EUR 130 million, almost double the value reported last year (EUR 64 million). Pre-tax earnings increased from EUR 49 million the previous year to EUR 129 million. The result is a net annual income of EUR 77 million (last year EUR 16 million). This value would have been much higher without a special expenditure of EUR 33 million for a cross-licensing agreement concluded by the Semiconductor Technology Group.
Corporate value is growing
The growth in corporate value paralleled the rise in earnings. All six business groups achieved an enhancement of their value on the basis of the financial performance measure EVAŽ (Economic Value Added) and improved their position compared to last year. Overall, EVAŽ at Carl Zeiss grew to EUR 42 million, a very good value. "We have constantly increased our balance sheet performance in the past few years," explained Chief Financial Officer Dr. Michael Kaschke. "Our strategy of value-oriented corporate control focused on continuous EVA enhancement is now paying off."
Reduction in manpower
On the balance sheet date, the Carl Zeiss Group had a global workforce of 13,667 people (last year 14,151), including 3,984 outside Germany (last year 4,044). The drop was largely attributable to capacity adjustments in Germany in the Consumer Optics, Semiconductor Technology and Microscopy (Jena site) Groups, in the Oberkochen Service Center and in the Wetzlar plant initiated last year.
Net liquid assets at record level
The substantial rise in earning power is also reflected in the pre-tax cash flow. At EUR 264 million, the value exceeded last year's level (EUR 190 million) by a good third. This is equivalent to 12 percent (last year 9 percent) of revenues. There has been a further strong rise in the net liquid assets of the Carl Zeiss Group. After a figure totaling EUR 525 million the previous year, they increased to the record value of EUR 672 million on the balance sheet date.
Increase in equity ratio
The Carl Zeiss Group has once again expanded its equity capital in fiscal year 2003/04. The equity ratio increased by one percentage point to 20 percent. At the same time, there was an increase in the funds available in the long term (equity and long-term provisions) which, with a figure totaling EUR 1,337 million (last year EUR 1,219 million), accounted for about 64% of the balance sheet total.
Decreased investments
Investments in plant, property and equipment totaled EUR 81 million (last year EUR 105 million). Depreciations totaled EUR 97 million compared to the high figure of EUR 114 million recorded the previous year due to special depreciations in the Semiconductor Technology Group. Capital spending was once again concentrated on semiconductor technology, ophthalmic products and the production areas of the Oberkochen and Jena Service Centers.
Further rise in innovative strength
To expand its leading technological position in the competitive arena, the Carl Zeiss Group once again increased its investments in innovation. With a total of EUR 209 million (last year: EUR 190 million ), spending on research and development reached a record high. This corresponds to ten percent of revenue and underlines the Group's aspiration to expand its technology leadership and turn it into market success. This is reflected by the percentage of new products in overall sales. In fiscal year 2003/04 the Carl Zeiss Group generated roughly 43 percent of its revenue with products launched in the past three years. There was also a rise in the number of inventions. The 371 applications for patents or registered designs topped the previous year's figure by eight percent.
To read on the full report, please download the  PDF file here.
Marc Cyrus Vogel
Vice President Corporate Communications
Phone: +49 7364 20-3242
Fax: +49 7364 20-3122
E-Mail: vogel@zeiss.de | Download whole report
 E-Mail
 Print this page |