IPG profits dropped to $55M in the third quarter
Photo | Grant Welker
IPG Photonics' former headquarters in Oxford.
IPG Photonics, a global manufacturer of optical fiber lasers headquartered in Marlborough, on Tuesday reported $55 million in profits for its third quarter.
This number is down 28% from $76.3 million in net earnings in the same quarter last year, according to a press release issued by the company.
Separately, the company said Felix Stukalin, IPG’s chief operations officer, passed away earlier in October, according to an Oct. 6 filing with the U.S. Securities & Exchange Commission. A replacement for Stukalin has not been publicly named.
Regarding its drop in profits, IPG placed the blame on weak industrial demand and a decrease in investments in the electric vehicle battery industry in China.
"We are seeing further adoption of laser welding technology and introduced products to explore new applications for our lasers, such as cleaning and drying, in order to unlock additional growth opportunities for IPG,” Eugene Scherbakov, IPG Photonics’ CEO, said in the press release. “Our gross margin continues to improve, despite lower revenue, as we focused on reducing costs, managing inventory and improving manufacturing efficiency."
So far in 2023, IPG has made $998.5 million in revenue, compared to $1.10 billion at this point last year, representing a 10% decrease.
IPG was founded in 1990 by late Russian physicist Valentin Gapontsev. In addition to its headquarters in Marlborough, the company has a manufacturing facility in Oxford.
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