IPG Photonics profit down 48% in Q1
Photo | Grant Welker
The Oxford headquarters of IPG Photonics
Oxford-based laser maker IPG Photonics saw first quarter profit decline 48% and revenues decline 12% year-over-year due to a challenging global economic picture.
The company took in just $55.2 million on revenues of $315 million for the quarter, which were still in line with expectations, but the results reflected another quarter of tough international trade as sales decreased in every major market outside of North America.
On a per-share basis, earnings dropped 47% from $1.93 to $1.02, IPG reported Tuesday.
The company said sales decreased 24% in both China and Europe and 20% in Japan.
North American sales, however, increased 65%.
IPG is expecting a much better second quarter, with revenue estimates between $340 million and $370 million.
Since last summer, the company has been hit hard by tensions between U.S. and China trade regulators and the company lost $3 billion in value in one trading session in July.
CEO Valentin Gapontsev said in a statement the company has been able to weather the storm and keep costs low while continuing to innovate and introduce new products.
“More importantly, we have met competitive challenges head on through a combination of substantial reduction of component and manufacturing costs and introduction of unmatched product features that improve processing speed, flexibility and quality for our customers,” he said.
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