CEAG Increases Revenue and Earnings in the First Quarter
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| 04/21/2006 |
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| CEAG Increases Revenue and Earnings in the First Quarter |
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Ostbevern, April 21, 2006
The manufacturer of power supplies and chargers remains on track for growth Consolidated EBIT improves from EUR 0.6 million to EUR 3.5 million CEAG wins a greater share of the global mobile telephone market Significant growth also expected for fiscal year 2006
The CEAG Group remains on its growth course after a strong first quarter 2006. The manufacturer of high-quality FRIWO power supplies and chargers reports significant growth rates in unit sales and revenues for the first three months of the current year and has considerably improved its results of operations, building on the momentum of business performance in the preceding quarters. The driving force behind this development remains the growing mobile telephone market as well as the successful acquisition of new customers, as seen in previous years.
Unit Sales
The CEAG Group sold a total of 61.7 million power supplies and chargers in the first quarter of this year. This translates into an increase of 52.2% on the figure for the same prior-year period (40.5 million units). CEAG had previously increased capacities in its three Chinese plants to meet the high level of demand expected.
Both business units contributed to this excellent performance with high double-digit growth rates. The FRIWO Mobile Power (FMP) business unit, which caters to the high-volume mobile telephone market, sold 56.0 million units in the first three months, compared to 36.5 million units in the same prior-year period (up 53.1%).
Growing well above market levels, CEAG has further increased its lead in the global market for power supplies and chargers for mobile telephones and won a greater share of the market compared to the first quarter of 2005. Already in 2005, the Group succeeded in improving its position as world market leader and increasing its market share by two percentage points to around 23%.
The FRIWO Power Solutions (FPS) business unit, which focuses on highly fragmented markets such as medical technology, household appliances and power tools, was able to increase the number of units sold to 5.8 million in the first three months, an increase of 44.3% on the 4.0 million units sold in the same prior-year period.
Revenue and Earnings
The CEAG Group reports revenues of EUR 73.9 million in the first three months – up 68.2% on the same period in 2005 (EUR 44.0 million). Revenues grew more strongly than unit sales thanks to a higher percentage of products incorporating switch mode technology, for which higher prices can be realized than for conventional linear technology. In the first quarter, switch mode products accounted for 67% of revenues (first quarter 2005: 61%).
The Group’s earnings before interest and taxes (EBIT) for the quarter came to EUR 3.5 million, well up on the EUR 0.6 million generated in the same prior-year quarter. The EBIT operating margin, in relation to revenues, grew by 3.2 percentage points to 4.7%. Consolidated net profit for the first three months of 2006 rose from EUR 0.4 million to EUR 3.1 million.
Performance of the Business Units
To enhance transparency, CEAG will report the results of the group holding company, CEAG AG, as a separate segment starting in fiscal year 2006. The prior-year figures for all segments have been adjusted accordingly.
The FMP business unit generated revenues of EUR 56.5 million from January to March 2006, up 90.3%. This strong growth is attributable to the dynamic performance of the mobile telephone market, the revenues generated by new FMP customers and the greater share contributed by switch mode technology. The business unit improved its EBIT from EUR 1.0 million to EUR 3.5 million.
The FPS business unit increased its revenues by 22.2% to EUR 17.4 million in the first quarter. EBIT reached EUR 0.7 million (first quarter of 2005: EUR 0.2 million).
The holding company’s EBIT came to -EUR 0.7 million after -EUR 0.5 in the same quarter of the prior year
Outlook for 2006
The Management Board reaffirms its revenue growth forecast, although the growth rate of the first quarter cannot be expected for the year as a whole. As long as there are no unexpected costs or other negative events, the results of operations are expected to improve for the year as a whole.
More information:
CEAG AG
Gudrun Richter
Investor Relations
Tel.: +49 – 2532 – 81 158
E-mail: richter@friwo.de |
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