Summary:
- Loss: Carl Zeiss Meditec reports a 4.9 million euro loss after tax in the first quarter.
- Cause: Slump in China business due to changed market access rules and currency effects.
- Consequence: Forecast lowered, increased relocation of production to China planned.
- Uncertainty: Decision on the impact on Jena jobs is still pending (until May).
Jena (Thüringen). These are reports one is not usually accustomed to hearing from the south of Jena: The usually successful medical technology group Carl Zeiss Meditec has slipped into the red. On Wednesday morning, the MDAX-listed company announced that the first quarter of the current fiscal year concluded with a loss. For the business location of Jena, which proudly presents itself as the “City of Light” and center of the optical industry, this is a warning signal that demands attention.
From Profit to the Loss Zone
The figures speak a clear language and stand in stark contrast to the previous year. While Carl Zeiss Meditec was still able to record a solid profit of 15.7 million euros in the same period last year, the bottom line now shows a minus of 4.9 million euros. Revenue simultaneously fell by 4.8 percent to 467 million euros. CFO Justus Felix Wehmer spoke of a “sluggish start” to the new fiscal year, which traditionally begins at Zeiss as early as October.
In addition to currency effects, which particularly weighed on business in US dollars, the main problem lies in the Far East. China, for a long time the growth engine for the German export economy and also for Thuringian medical technology, is faltering – or more accurately: China is changing the rules to the disadvantage of foreign providers.
The Headwind from China Becomes a Storm
For Carl Zeiss Meditec, the “Middle Kingdom” is not just any sales market, but essential. The group generates around a quarter of its total revenue there. However, the Chinese government is pushing a policy that favors domestic companies. The keyword is “local value creation.”
Specifically, this concerns changed tender procedures in the public healthcare system, for example, for artificial eye lenses used to treat cataracts. Chinese providers are increasingly given preference or price advantages, making it massively more difficult for importers like Zeiss Meditec to place their high-tech products on the market. The result: sales are collapsing, and margins are coming under pressure.
What Does This Mean for Jena?
The group’s reaction to these market movements could also have tangible consequences for the headquarters in Jena. In order not to lose access to the massive Chinese ophthalmology market, the board feels compelled to adapt its strategy: “Local for Local” is the motto. This means that development and production must increasingly take place directly in China to be considered a “local provider” and be taken into account in tenders.
Carl Zeiss Meditec already operates two production facilities in China. Whether and to what extent capacities or future investments will now be relocated from Germany to Asia is the crucial point for the workforce in Thüringen. Currently, it remains unclear what specific effects this strategic realignment will have on jobs in Jena.
Until May, further decisions are expected to be made. It is a period of uncertainty for the region, as Zeiss is not only an employer but a defining feature of the city’s identity. The company maintains 17 production sites worldwide, but its heart traditionally beats in Thüringen.
Outlook Remains Cautious
Due to current developments, the company had to adjust its forecast. The board assumes that the originally targeted revenue goal of 2.3 billion euros for the full year can no longer be maintained. In addition to the problems in China, general market uncertainties and a global reluctance to invest in the healthcare sector are causing a slowdown.
The group management is now planning a realignment of research and development to respond more efficiently to the changed market conditions. An updated forecast for the fiscal year, which runs until September, is scheduled to be published on May 12. Until then, a phase of uncertainty remains for investors and employees alike.
We will stay tuned to this topic for you and report as soon as there is news regarding the impact on the Jena location.
Sources:
Original
Transparency Note: This article was created automatically, editorially reviewed, and expanded with AI support.