CEAG Group Saw Its Unit sales, Revenues and Profits Rise in 2005
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| 03/16/2006 |
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| CEAG Group Saw Its Unit sales, Revenues and Profits Rise in 2005 |
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Position as world’s leading manufacturer of chargers for mobile telephones improved
Consolidated revenues up 43% to EUR 230 million
EBIT up EUR 2 million to EUR 5.6 million
Ostbevern, March, 16, 2006
CEAG AG - a manufacturer of high-quality FRIWO power supplies and chargers – announces a successful fiscal year 2005. Due to the sustained uptrend on the global mobile telephone market, revenues and units sales rose significantly, enabling the Company to improve its position as the world's leading manufacturer of chargers for mobile telephones. Despite negative cost effects, the results of operations also improved noticeably.
Unit Sales
In 2005, the CEAG Group sold 209.7 million power supplies and chargers. Compared to last year, this represents growth of 36%. All three Chinese plants had to expand their manufacturing capacities to meet increasing demand.
The business unit FRIWO Mobile Power (FMP), covering the high-volume mobile telephone market, saw its unit sales rise 34% to 189.6 million units. CEAG, therefore, was able to secure itself a large share of the growth on the mobile telephone market (up 20%). Gains in market share have been achieved with existing buyers but also by winning new important customers. The Group’s market share as a worldwide leading manufacturer of power supplies and chargers for mobile phones increased to 23% (2004: 21%) in 2005. The business unit FRIWO Power Solutions (FPS), engaged in highly fragmented markets such as those for household appliances, medical technology and power tools, reported a 58% rise in unit sales to 20.1 million units, thus maintaining the growth course of the prior year.
Revenues and Earnings
Up 43% to EUR 230.0 million, consolidated revenues grew much stronger than sales. Among other things, this can be attributed to the continued increase in the percentage of revenues contributed by the higher-priced power supplies and chargers with switch mode technology to consolidated earnings. While the FMP business unit saw its revenues jump 47% to EUR 166.7 million, the FPS business unit reported revenues of EUR 63.3 million, an increase of 35%.
Earnings were boosted by the strong revenue growth mentioned above but were also dogged by the continually high and increasing raw material prices, by wage and salary increases in China and by a provision recognized for a product recall.
In spite of the above factors, earnings before interest and taxes (EBIT) increased to EUR 5.6 million, following EUR 3.6 million in 2004. Consolidated net profit came to EUR 4.2 million, a two-fold increase on the prior year.
Outlook
The global mobile telephone market is due to grow further in the current year, and the FMP business unit is expected to profit from this growth. For 2006, the Management Board of CEAG AG forecasts an increase in consolidated revenue and EBIT, which will be accompanied by the continued need for capital expenditure.
Rolf Endress, CEO of CEAG AG: “CEAG has benefited immensely from the market growth and seen its results of operations improve. Nevertheless, the increased operating profit is only a stepping stone. We aim to lead the Group into a phase of sustainable growth with adequate profitability.”
For further information please contact:
CEAG AG
Gudrun Richter
Investor Relations
Tel.: +49 – 2532 – 81 158
eMail: richter@friwo.de
CEAG AG
CEAG AG has its registered office in Bad Homburg, Germany, and its headquarters in Ostbevern, Westphalia, Germany. It will be listed in the General Standard as of April 11, 2006, and is the holding company of the two FRIWO business units. The FRIWO Mobile Power (FMP) business unit operates in the mobile communication market and is the world’s leading manufacturer of chargers for mobile telephones. It held a market share of some 23% in 2005. The FRIWO Power Solutions (FPS) business unit manufactures custom-made power supplies and chargers for the four segments of IT and communications, power tools, industrial applications and medical technology. CEAG AG/FRIWO Group is present in all major world markets, with state-of-the-art development centers, production and sales in Europe, Asia and North and South America. Consolidated revenues amounted to EUR 230 million in 2005. CEAG AG’s principal shareholder is DELTON AG, holding almost 77% of its capital.
DELTON AG
DELTON AG is a holding company headquartered in Bad Homburg, Germany. With its divisions Pharmaceuticals, Household Products, Logistics and Power Supply, it manages the value-creating investment and entrepreneurial activities of its sole shareholder Stefan Quandt. DELTON AG is active in clearly defined markets offering future growth in which its divisions already hold or are intending to achieve leading positions on an international scale. With a workforce of close to 29,000 employees, the DELTON Group generated sales of around €2.4 billion in fiscal 2005.
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