IPG 2022 Q1 China Market Revenue Down 7% Year-on-year

On May 3, IPG Photonics released financial data for the first quarter of 2022, which ended March 31. According to reports, in the first quarter of this year, IPG achieved revenue of US$370 million, a year-on-year increase of 7%; net profit was US$70 million, a year-on-year increase of 2%. Among them, the Chinese market revenue decreased by 7% year-on-year ($132 million, approximately RMB 837 million), accounting for 35% of the company's total revenue.

IPG's strong first-quarter results were driven by high demand across various applications in Europe, North America and Japan. Increased revenue in laser welding applications, especially in electric vehicle manufacturing applications, drove IPG's record welding revenue for the quarter.

Dr. Eugene Scherbakov, CEO of IPG Photonics, said, "We have seized the growth opportunity to diversify our revenue in different regions and applications, such as electric vehicle production, hand-held welding and medical products, and the Chinese market accounted for 4% of our revenue this quarter. The ratio fell to 35%. Given the increased geopolitical risk, we are reducing our reliance on Russian manufacturing and halting new investments in the region, while increasing manufacturing capacity in North America and Western Europe.”

From the perspective of the application market, material processing is still the main source of income for IPG. The sales of this market accounted for 92% of the total revenue, an increase of 7% year-on-year. Among them, the sales of welding, marking, systems, cleaning and 3D printing increased, but Some of the growth was offset by lower revenue in the dicing applications market and solar cell manufacturing applications. Sales in other applications increased 9% year over year, driven by strong growth in the medical segment, partially offset by lower sales in the advanced applications and telecommunications segments. Sales of emerging growth products accounted for 36% of total revenue.

By product, revenue from high-power continuous wave (CW) lasers declined 2% year over year as weaker demand for high-power cutting applications in China was partially offset by strong growth in welding and cutting in the region and most other major regions meet this need. Sales of mid-power and pulsed lasers improved significantly from the prior year, primarily driven by emerging growth products.

In terms of regions, sales in Europe, North America, and Japan increased by 27%, 5%, and 18%, respectively, while sales in China decreased by 7%.

For the second quarter of 2022, IPG expects revenue of $355 million to $385 million.