Leica’s First Quarter Results

Leica Geosystems (Switzerland) has reported continued growth in its first quarter sales and net earnings. First quarter sales rose to CHF 210.7 million (US$ 260,749,869.83), an increase of 11.7% above the previous year, or 10.8% when measured in local currency. Growth was again led by a surge in the company’s core Surveying & Engineering (S&E) revenues, which increased by nearly 21% on the back of strong demand for its new high-end GPS/TPS surveying instruments and Machine Automation solutions for mining. Net income rose by 37% to CHF 15.6 million (US$ 12,450,031.73) with EPS of CHF 6.72 per share (US$ 5.36). Net debt fell to CHF 98.6 million (US$ 78,688,360.79).

Commenting on the first quarter’s results, Hans Hess, CEO of Leica Geosystems, said: “The strength of our product offering in S&E continues to be a significant growth driver for the company. This quarters topline growth of over 20% in S&E was especially relevant, as the solutions side of this business, particularly in the Machine Automation segment, grew at rates well above 50%. This growth was underscored by a 20% rise in S&E revenues in the US, Europe, and Asia. The Surveying & Engineering division generates over 60% of group sales.”

In the company’s other divisions, sales increased by 10.5% in Metrology (9.6% in local currency) on the back of solid demand for the division’s new T-Products. In High-Definition Surveying (HDS), revenues exceeded previous year levels by 1.8% (0.5% in local currency), despite an exceptionally strong result in the prior year. As anticipated, sales in Geospatial Imaging (formerly GIS & Mapping) were off previous year levels, and declined -3.0% (-3.1% in local currency). Sales were on track in the division’s commercial solutions and sensor businesses, offset by a further delay in the purchasing decision for a large software project in the public sector. In Consumer Products, despite the growing anticipation of the new products
coming to market in autumn, sales were also off slightly from FY05 levels, dipping -2.7% in the first quarter (-3.2% in local currency).