CEAG records strong growth in th first nine months
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| 11/07/2006 |
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| CEAG records strong growth in th first nine months |
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Ostbevern, November 7, 2006
Revenues rise by 60%Revenue forecast specified for the year as a wholeMore than three-fold increase in consolidated EBITShare of the market for mobile telephone chargers hits record level of 30% in third quarter
The CEAG Group achieved significant year-on-year growth in unit sales and revenues in the first nine months of 2006 as well as a substantial improvement in consolidated earnings. The manufacturer of high-quality FRIWO brand power supplies and chargers benefited from the continuing growth of the mobile telephone market as well as the acquisition of new customers in the prior year and of new projects this year.
Unit Sales
The CEAG Group increased unit sales by 52.7% in the first three quarters, manufacturing 214.2 million (prior-year period: 140.3 million) power supplies and chargers for what remains a fast growing mobile telephone market. The CEAG Group’s three Chinese plants were operating at high capacity.
The FRIWO Mobile Power business unit (FMP), which mainly caters to the high-volume mobile telephone market, achieved significant growth in the third quarter, attaining a global market share of some 30%. Unit sales in the first nine months rose by 54.5% to 194.4 million units (prior-year period: 125.8 million units). This is further proof of FRIWO’s market leadership.
The FRIWO Power Solutions (FPS) business unit, which focuses on highly fragmented markets such as household appliances and power tools or medical technology, achieved unit sales of 19.8 million units (up 37.1%) in the period from January to September 2006 (prior-year period: 14.4 million units).
Revenues
The CEAG Group achieved revenue growth of 60.7% to EUR 246.7 million in the first nine months (prior-year period: EUR 153.5 million). Revenues grew more strongly than unit sales thanks to the higher percentage of products incorporating switch mode technology, for which higher prices can be realized on the market than for conventional linear technology.
Earnings
Nine-month earnings before interest and taxes (EBIT) rose significantly, up 259% from EUR 3.1 million in the comparable prior-year period to EUR 11.2 million, despite some considerable increases in costs, especially for raw materials, energy and wages in China. The EBIT operating margin, in relation to revenues, grew from 2.0% to 4.5%. Consolidated net profit leapt from EUR 2.3 million to EUR 9.1 million.
Performance of the Business Units
The FMP business unit increased revenues from EUR 107.5 million to EUR 190.0 million in the first three quarters. EBIT rose from EUR 4.5 million to EUR 10.6 million. The current situation at the insolvent mobile telephone manufacturer BenQ Germany has not had a notable impact on the business performance of the CEAG Group as this customer accounts for under 5% of FMP revenues and the receivables from BenQ Germany have already been written off.
The FPS business unit increased its revenues in the first nine months from EUR 46.0 million to EUR 56.7 million. Nine-month EBIT amounted to EUR 2.6 million after EUR 0.6 million for the first nine months of 2005.
The EBIT of the holding company, CEAG AG, disclosed separately for the first time in the current fiscal year, came to -EUR 2.1 million following -EUR 2.0 million in the first three quarters of 2005.
Outlook for 2006
Given the attractive customer portfolio, the Management Board expects revenues of approx. EUR 340 million for 2006 as a whole, an increase of almost 50% on the EUR 230 million reported in 2005.
A significant improvement in earnings is also anticipated for 2006 as a whole. However, the results for the first nine months cannot be extrapolated to the entire year because only part of the significant cost increases in some areas can be passed on to customers.
More information:
CEAG AG
Ms. Gudrun Richter
Investor Relations
Tel.: +49 – 2532 – 81 158
E-mail: richter@friwo.de
Please see attached pdf-file.
CEAG AG
CEAG AG has its registered office in Bad Homburg, Germany, and its headquarters in Ostbevern, Westphalia, Germany. It is listed in the General Standard, and is the holding company of the two FRIWO business units. The FRIWO Mobile Power (FMP) business unit operates in the mobile telecommunication 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, which holds 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 EUR 2.4 billion in fiscal 2005.
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