CEAG Group profitable again in 2004
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| 03/16/2005 |
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| CEAG Group profitable again in 2004 |
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Turnaround of previous year stabilized Annual surplus of 2,1 mill. EUR in spite of increased raw material cost 11,2 percent increase of produced power supplies and chargers Strong growth and positive result of business unit FPS
Ostbevern 16 th March 2005
In spite of considerable impacts caused by currency effects and raw material prices, the business year 2004 turned out successful for CEAG. In the aftermath of the 2003 turnaround, the worldwide operating manufacturer of sophisticated FRIWO power supplies and chargers was able to stabilize the positive result and to generate an annual surplus of 2,1 mill. EUR. The currency adjusted group revenue of the Prime Standard Segment rated company increased by 4 percent.
Sales
In 2004, the group sold 154,7 mill. power supplies and chargers. Compared to 2003, this represents an increase of 11,2 percent. The business unit FRIWO Mobile Power (FMP), which covers the high-volume market of mobile communication and IT technology, grew by 7,7 percent. The reason why this is less than the overall growth of the worldwide mobile phone market is mainly linked to shifts of market shares among those mobile phone companies who are not yet customers of CEAG. With a market share of 21 percent CEAG, however, was able to sustain its position as worldwide greatest manufacturer of power supplies and chargers for mobile phones.
The business unit FRIWO Power Solutions (FPS), which operates in strongly fragmented markets like household appliances, medical technology or power tools, achieved a sales plus of 75 percent. The growth is mainly a merit of new projects which have partially been launched in 2003, and which are now showing impact for the entire year.
Revenue and income trend
The group revenue of 2004 read 160,4 mill. EUR and remained below the previous year by 4,2 percent. Like in the past year, the decline is caused by the considerable increment value of the Euro versus the US Dollar since the group effects the major part of the business in US-Dollar or Dollar-dependent currencies respectively. If last year's currency exchange rates were applied, revenue 2004 would have increased by 4 percent.
The income development of the past business year was burdened by two factors:
The currency affected revenue losses lead to a decline of the operative result (EBIT). In 2004 prices for the most important raw materials (copper, plastics and metal) have considerably increased. The copper consumption of the group alone adds up to 3.000 tons per year.
Nevertheless, with 3,6 mill. EUR the group achieved distinctly more positive earnings before interest and tax (EBIT) after 4,2 mill. EUR in 2003. An unchanged firm cost and process management compensated part of the impacts caused by currency exchange rates and raw material prices.
The group's annual surplus read 2,1 mill. EUR which is 0,7 mill. EUR below the previous year.
Development of the business units
Last year, the revenue of the business unit FMP was 113,4 mill. EUR - a decline of 13 percent. Market induced price reductions and the persistent impairment of the US Dollar led to losses. The EBIT of FMP read 3,4 mill. EUR after 5,2 mill. EUR in 2003.
Thanks to a line of new products and customers, the business unit FPS continued to grow dynamically. Revenue increased in 2004 by 25 percent to 47,1 mill. EUR. Consequently, the business unit already contributed to the group revenue by 29 percent. The EBIT, therefore, improved from minus 1,0 mill. EUR to plus 0,3 mill. EUR. As forecasted, FPS is in the black.
Outlook 2005
Market experts predict further growth of the worldwide mobile phone market for 2005 but without last year's dynamics. Top priority of the business unit FMP is given to the extension of the customer portfolio to benefit more intensely from the market growth than in 2004. As to the business unit FPS, improved product platforms and specific individual designs are supposed to better exploit the potentials of the strategic business segments.
Rolf Endress, CEO of CEAG AG:
„2004 was a challenging year for CEAG. Especially the impact intensity on the cost side was not clearly predictable. In this situation our policy, to constantly check all structures and processes for cost savings, came in handy. With the opening of our third factory in China in October 2004 we have provided sufficient capacity to participate in the sustainably growing mobile phone market. Nevertheless, we must succeed in becoming more independent of market share shifts among the mobile phone companies. All in all were are somewhat optimistic for 2005.
Further Information:
CEAG AG
Gudrun Richter
Investor Relations
Tel.: +49 – 2532 – 81 158
eMail: richter@friwo.de |
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