RofinSinar Technologies Inc. (RSTI, Financial) filed Quarterly Report for the period ended 2009-03-31.
Rofin-Sinar Technologies designs develops engineers manufactures and markets laser products for cutting welding and marking a wide range of industrial materials. Through its global manufacturing distribution and service network the company provides a comprehensive range of laser solutions to three principal target markets for material processing lasers: the machine tool automotive and semiconductor/electronics industries. RofinSinar Technologies Inc. has a market cap of $598.75 million; its shares were traded at around $20.71 with a P/E ratio of 13.63 and P/S ratio of 1.04. RofinSinar Technologies Inc. had an annual average earning growth of 24.1% over the past 5 years.
Ended March 31, Ended March 31,
- -
2009 2008 2009 2008
- - - -
Net sales 100% 100% 100% 100%
Cost of goods sold 63% 56% 62% 56%
Gross profit 37% 44% 38% 44%
Selling, general and
administrative expenses 26% 20% 23% 19%
Research and development expenses 10% 7% 9% 7%
Intangibles amortization 1% 3% 1% 2%
Income from operations 0% 14% 5% 16%
Income before income taxes
and minority interest 2% 12% 7% 16%
Net income 2% 8% 5% 10%
Net Sales - Net sales of $75.6 million and $182.6 million represent decreases
of $61.0 million, or 45%, and $88.7 million, or 33%, for the three and six-
month periods ended March 31, 2009, as compared to the corresponding period
in fiscal 2008. The decrease for the three-months ended March 31, 2009,
resulted from a net sales decrease of $44.9 million, or 43%, in Europe and
Asia, and a decrease of $16.1 million, or 48%, in North America, compared to
the corresponding period in fiscal 2008. The decrease for the six months
ended March 31, 2009, compared to the corresponding period in fiscal 2008,
resulted from a net sales decrease of $63.8 million, or 30%, in Europe and
Asia, and a decrease of $24.9 million, or 41%, in North America. The U.S.
dollar strenghtened against foreign currencies, primarily against the Euro,
which had an unfavorable effect on net sales of $10.7 million and $18.4
million for the three and six-month periods ended March 31, 2009.
- 22 -
Net sales of laser products for macro applications decreased by $29.3
million, or 49%, to $30.3 million and by $49.8 million, or 41%, to $71.7
million for the three and six-month periods ended March 31, 2009, as compared
to the corresponding periods of fiscal 2008. The decrease can be mainly
attributed to the lower demand for our lasers for macro applications in the
machine tool and automotive industry.
Gross Profit - Our gross profit of $27.9 million and $69.9 million for the
three and the six-month periods ended March 31, 2009, represents decreases of
$32.7 million, or 54%, and $49.4 million, or 41%, from the corresponding
periods of fiscal year 2008. As a percentage of sales, gross profit
decreased from 44% to 37% for the three-month period ended March 31, 2009,
and from 44% to 38% for the six-month period ended March 31, 2009, as
compared to the corresponding periods in fiscal year 2008. The decrease in
our gross margins was mainly the result of the low level of business with the
corresponding lower absorption of fixed costs, and a decrease in our service
and spare parts revenue. Gross profit was unfavorably affected by $3.0
million and $5.8 million for the three and six-month periods ended March 31,
2009, respectively, due to the strengthening of the U.S. dollar against
foreign currencies, primarily against the Euro.
Selling, General and Administrative Expenses - Selling, general and
administrative ("SG&A") expenses of $19.5 million and $42.6 million for the
three and six-month periods ended March 31, 2009, represent decreases of $8.1
million, or 29%, and $9.0 million, or 17%, from the corresponding periods of
fiscal 2008. The decrease in SG&A expenses is mainly a result of cost
reductions in labor, travelling and advertisement, as well as lower
commissions related to the lower level of revenues. Additionally, SG&A, a
significant portion of which is incurred in foreign currencies, was favorably
affected by $2.2 million and $3.3 million for the three and six-month periods
ended March 31, 2009, respectively, due to the strengthening of the U.S.
dollar against foreign currencies, primarily the Euro. As a percentage of net
sales, SG&A expenses increased from 20% to 26% and from 19% to 23% for the
three and six-month periods during the respective periods.
Income Tax Expense - Income tax expense of $0.3 million and $3.6 million for
the three and six-month periods ended March 31, 2009, represents an effective
tax rate of 19% and 29% for the three and six-month periods, compared to 35%
and 33% for the corresponding periods of the prior year. The lower overall
effective income tax rate is primarily due to the mix in the taxable income
that was mainly generated in countries with lower tax rates. Income tax
expense, a significant portion of which is incurred in foreign currencies,
was favorably affected by $0.4 million and $0.8 million for the three and
six-month periods ended March 31, 2009, due to the strengthening of the U.S.
dollar against foreign currencies, primarily the Euro.
Read the The complete ReportRSTI is in the portfolios of Robert Olstein of Olstein Financial Alert Fund.
Rofin-Sinar Technologies designs develops engineers manufactures and markets laser products for cutting welding and marking a wide range of industrial materials. Through its global manufacturing distribution and service network the company provides a comprehensive range of laser solutions to three principal target markets for material processing lasers: the machine tool automotive and semiconductor/electronics industries. RofinSinar Technologies Inc. has a market cap of $598.75 million; its shares were traded at around $20.71 with a P/E ratio of 13.63 and P/S ratio of 1.04. RofinSinar Technologies Inc. had an annual average earning growth of 24.1% over the past 5 years.
Highlight of Business Operations:
Three Months Six MonthsEnded March 31, Ended March 31,
- -
2009 2008 2009 2008
- - - -
Net sales 100% 100% 100% 100%
Cost of goods sold 63% 56% 62% 56%
Gross profit 37% 44% 38% 44%
Selling, general and
administrative expenses 26% 20% 23% 19%
Research and development expenses 10% 7% 9% 7%
Intangibles amortization 1% 3% 1% 2%
Income from operations 0% 14% 5% 16%
Income before income taxes
and minority interest 2% 12% 7% 16%
Net income 2% 8% 5% 10%
Net Sales - Net sales of $75.6 million and $182.6 million represent decreases
of $61.0 million, or 45%, and $88.7 million, or 33%, for the three and six-
month periods ended March 31, 2009, as compared to the corresponding period
in fiscal 2008. The decrease for the three-months ended March 31, 2009,
resulted from a net sales decrease of $44.9 million, or 43%, in Europe and
Asia, and a decrease of $16.1 million, or 48%, in North America, compared to
the corresponding period in fiscal 2008. The decrease for the six months
ended March 31, 2009, compared to the corresponding period in fiscal 2008,
resulted from a net sales decrease of $63.8 million, or 30%, in Europe and
Asia, and a decrease of $24.9 million, or 41%, in North America. The U.S.
dollar strenghtened against foreign currencies, primarily against the Euro,
which had an unfavorable effect on net sales of $10.7 million and $18.4
million for the three and six-month periods ended March 31, 2009.
- 22 -
Net sales of laser products for macro applications decreased by $29.3
million, or 49%, to $30.3 million and by $49.8 million, or 41%, to $71.7
million for the three and six-month periods ended March 31, 2009, as compared
to the corresponding periods of fiscal 2008. The decrease can be mainly
attributed to the lower demand for our lasers for macro applications in the
machine tool and automotive industry.
Gross Profit - Our gross profit of $27.9 million and $69.9 million for the
three and the six-month periods ended March 31, 2009, represents decreases of
$32.7 million, or 54%, and $49.4 million, or 41%, from the corresponding
periods of fiscal year 2008. As a percentage of sales, gross profit
decreased from 44% to 37% for the three-month period ended March 31, 2009,
and from 44% to 38% for the six-month period ended March 31, 2009, as
compared to the corresponding periods in fiscal year 2008. The decrease in
our gross margins was mainly the result of the low level of business with the
corresponding lower absorption of fixed costs, and a decrease in our service
and spare parts revenue. Gross profit was unfavorably affected by $3.0
million and $5.8 million for the three and six-month periods ended March 31,
2009, respectively, due to the strengthening of the U.S. dollar against
foreign currencies, primarily against the Euro.
Selling, General and Administrative Expenses - Selling, general and
administrative ("SG&A") expenses of $19.5 million and $42.6 million for the
three and six-month periods ended March 31, 2009, represent decreases of $8.1
million, or 29%, and $9.0 million, or 17%, from the corresponding periods of
fiscal 2008. The decrease in SG&A expenses is mainly a result of cost
reductions in labor, travelling and advertisement, as well as lower
commissions related to the lower level of revenues. Additionally, SG&A, a
significant portion of which is incurred in foreign currencies, was favorably
affected by $2.2 million and $3.3 million for the three and six-month periods
ended March 31, 2009, respectively, due to the strengthening of the U.S.
dollar against foreign currencies, primarily the Euro. As a percentage of net
sales, SG&A expenses increased from 20% to 26% and from 19% to 23% for the
three and six-month periods during the respective periods.
Income Tax Expense - Income tax expense of $0.3 million and $3.6 million for
the three and six-month periods ended March 31, 2009, represents an effective
tax rate of 19% and 29% for the three and six-month periods, compared to 35%
and 33% for the corresponding periods of the prior year. The lower overall
effective income tax rate is primarily due to the mix in the taxable income
that was mainly generated in countries with lower tax rates. Income tax
expense, a significant portion of which is incurred in foreign currencies,
was favorably affected by $0.4 million and $0.8 million for the three and
six-month periods ended March 31, 2009, due to the strengthening of the U.S.
dollar against foreign currencies, primarily the Euro.
Read the The complete ReportRSTI is in the portfolios of Robert Olstein of Olstein Financial Alert Fund.
