IPG Photonics to keep Russia facility operating, stock sinks toward near 2-year low
Shares of IPG Photonics Corp. slumped 7.5% in premarket trading Thursday toward a 23-month low, after the fiber lasers and optical components company said it will keep its Russia-based facilities operating, but expects lead times and shipping costs for components and lasers to increase due to sanctions. The company, which had about 1,950 employees in Russia as of Dec. 31, 2021, said its Russia-based facility makes optical components and finished products for its operations in the U.S., Germany and China. In 2021, IPG said its Russia operations supplied about $100 million of finished product for the Chinese market, while sales to Russian customers totaled $30 million. The company said its current cash balance in Russia is less than 1% of total current cash. The company recently disclosed that it had $70.1 million in long-lived assets in Russia, or 10.8% of total long-lived assets of $649.5 million. IPG's stock has tumbled 23.8% over the past three months through Wednesday, while the S&P 500 has slipped 3.4%.
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