Business
IPG Photonics Reports Third Quarter 2021 Financial Results
Improved Demand in Europe and U.S. and Growth in Emerging Products and Applications Drive Revenue of $379 Million and Earnings per Diluted Share of $1.40
About this update from Ipg Photonics Corporation
[{"type":"text","content":"Improved Demand in Europe and U.S. and Growth in Emerging Products and Applications Drive Revenue of $379 Million and Earnings per Diluted Share of $1.40\nOXFORD, Mass., Nov. 02, 2021 (GLOBE NEWSWIRE) -- IPG Photonics Corporation (NASDAQ: IPGP) today reported financial results for the third quarter ended September 30, 2021. Three Months Ended September 30, Nine Months Ended September 30, (In millions, except per share data and percentages) 2021 2020 Change 2021 2020 ChangeRevenue $379.2 $318.4 19% $1,096.4 $864.1 27%Gross margin 49.0% 48.0% 48.4% 45.4% Operating income $102.0 $41.4 146% $283.1 $133.4 112%Operating margin 26.9% 13.0% 25.8% 15.4% Net income attributable to IPG Photonics Corporation $75.4 $35.6 112% $213.3 $110.2 94%Earnings per diluted share $1.40 $0.66 112% $3.95 $2.05 93% Management Comments \"We are very pleased with our results and execution this quarter as an increasing geographic and product diversification helped us deliver one of the highest quarterly revenues in the Company's history,\" said Dr. Eugene Scherbakov, IPG Photonics’ Chief Executive Officer. \"Growth in demand in welding applications across most geographies and higher revenue in cutting in North America and Europe as well as emerging products and applications, such as foil cutting, cleaning, 3D printing, drilling, medical and solar cell applications drove strong revenue in the quarter, despite significantly softer demand in cutting applications in China.\" Financial Highlights Third quarter revenue of $379 million increased 19% year over year. Materials processing sales accounted for 91% of total revenue and increased 19% year over year driven by higher sales in welding, marking and additive manufacturing applications, while revenue in Other applications increased 17% year over year due to higher medical sales. Increased sales in welding and strong growth in cutting in North America and Europe were offset by lower revenue in cutting applications in China, which resulted in a decrease of 4% year over year in sales of high power continuous wave (CW) lasers. Pulsed and medium power lasers revenue increased, driven by growth in emerging products and applications. Systems also generated solid growth in the quarter helped by a sharp increase in LightWELD sales. By region, sales increased 50% in Europe and 55% in North America, and decreased 7% in Ch...