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IPG Photonics Announces Third Quarter 2022 Financial Results
Strong Demand from E-Mobility and Medical were Offset by Currency Headwinds and Softer General Industrial Demand in China and Europe OXFORD, Mass., Nov. 01,
About this update from Ipg Photonics Corporation
[{"type":"text","content":"Strong Demand from E-Mobility and Medical were Offset by Currency Headwinds and Softer General Industrial Demand in China and Europe\nOXFORD, Mass., Nov. 01, 2022 (GLOBE NEWSWIRE) -- IPG Photonics Corporation (NASDAQ: IPGP) today reported financial results for the third quarter ended September 30, 2022. Three Months Ended September 30, Nine Months Ended September 30, (In millions, except per share data and percentages) 2022 2021 Change 2022 2021 ChangeRevenue $349.0 $379.2 (8)% $1,096.0 $1,096.4 —%Gross margin 43.1% 49.0% 45.1% 48.4% Operating income $93.2 $102.0 (9)% $258.0 $283.1 (9)%Operating margin 26.7% 26.9% 23.5% 25.8% Net income attributable to IPG Photonics Corporation $76.3 $75.4 1% $202.8 $213.3 (5)%Earnings per diluted share $1.47 $1.40 5% $3.93 $3.95 (1)% Management Comments \"We continued to see upward momentum in our emerging growth products with strength in welding, primarily in e-mobility applications, cleaning, solar cell manufacturing, medical and 3D printing applications in the third quarter,\" said Dr. Eugene Scherbakov, IPG Photonics' Chief Executive Officer. \"The operating environment remains challenging, including currency headwinds, softer general industrial demand in Europe and Covid-related restrictions in China. At the same time, we are seeing accelerating investments in lithium-ion batteries used in electric vehicles globally and expect to benefit from continued higher sales to EV applications in the next several years. Additionally, our medical sales nearly doubled compared to the same period last year as we are focusing on diversifying revenues across end markets and applications and reducing cyclical sensitivity of the business.\" Financial Highlights Third quarter revenue of $349 million decreased 8% year over year. The strong U.S. dollar reduced revenue by approximately $26 million or 7% compared to the same period last year. Materials processing sales accounted for 90% of total revenue and decreased 10% year over year with higher sales in welding, cleaning and solar cell applications offset by lower revenue in cutting applications in China and Europe. Sales into Other applications increased 10% year over year, driven by the strength in medical, partially offset by lower revenue following the divestiture of the telecom transmission product lines and lower sales in advanced applications. Emergin...