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Further Growth in Revenue and Unit Sales for the CEAG Group in the First Half of 2007
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| 07/24/2007 |
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| Further Growth in Revenue and Unit Sales for the CEAG Group in the First Half of 2007 |
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Further Growth in Revenues and Unit Sales for the CEAG Group in the First Half of 2007
Ostbevern, Germany, July 20, 2007
Performance of the business units variesFPS continues on its encouraging growth pathFMP’s result below prior year due to numerous factors
The performance of the CEAG Group varied in the first six months of 2007. The manufacturer of high-quality FRIWO brand power supplies and chargers continued to record pleasing growth in its FRIWO Power Solutions (FPS) business unit. The result of the FRIWO Mobile Power (FMP) business unit fell short of the prior year due to numerous effects.
Unit Sales
The CEAG Group sold a total of 148.5 million power supplies and chargers in the first six months, up 13.4% year on year (131.0 million units). At 69.5 million, unit sales in the second quarter remained on a par with the prior year (69.1 million units).
The FPS business unit, which focuses on markets such as household appliances, power tools and medical technology, continues on a steady growth course, underpinned by a well balanced customer and product portfolio. Unit sales in the first six months came to 15.0 million, up 17.3% on the prior-year period (first half of 2006: 12.8 million).
The FMP business unit, which caters to the high-volume market of mobile telephone chargers, generated unit sales of 133.6 million in the first six months, up 13% on the comparable period in 2006 (118.2 million units). The volume sold in the second quarter reached the prior-year level (62.1 million).
The slowdown in growth over the first half of the year is mainly attributable to the phasing out of the production of linear devices in favor of more technically advanced switch mode products. In addition, flagging demand from FMP’s second biggest customer and delays in the launch of new products by customers dampened growth.
On a positive note, the number of switch mode products sold by the FMP business unit in the first six months increased by some 70% year on year.
Revenues and Earnings
The CEAG Group’s revenues grew by 6.2% to EUR 164.1 million in the first six months (first half of 2006: EUR 154.5 million). Growth in revenues was lower than growth in unit sales partly as a result of the US dollar, the currency in which CEAG mostly invoices, losing ground against the euro. Net of currency effects, revenue growth in the first six months would have been around 13%.
The CEAG Group’s results of operations were influenced by numerous factors in the first two quarters of fiscal year 2007. The drop in value of the US dollar against the euro reduced the earnings of the CEAG Group to the tune of EUR 0.7 million. The phasing out of linear devices, mounting competition and margin pressure and further cost increases also had a negative impact. A set of measures to reduce costs and improve efficiency, which are being continuously and consistently implemented, failed to fully cushion the impact of these effects.
Earnings before interest and taxes (EBIT) for the first half of the year came to EUR 4.7 million compared with EUR 7.7 million in the first half of the prior year. The second quarter accounted for EUR 2.2 million of this amount (second quarter of 2006: EUR 4.2 million). This translates into an EBIT margin of 2.8%, which is on a par with the first quarter of 2007.
The Group reports a consolidated net profit of EUR 3.6 million for the first half (prior-year period: EUR 6.4 million).
Performance of the Business Units
The FPS business unit performed much better and was much more profitable than in the comparable prior-year period. Revenues climbed to EUR 43.5 million in the first six months (prior year: EUR 36.7 million; up 18.7%). EBIT rose significantly, from EUR 1.6 million in the prior-year period to EUR 2.9 million.
At EUR 120.5 million, the revenues of the FMP business unit in the first six months were up 2.3% on the same prior-year period (EUR 117.8 million). EBIT amounted to EUR 2.9 million (first half of 2006: EUR 7.8 million).
Thanks to cost savings, the first-half EBIT of CEAG AG, the holding company, improved to -EUR 1.1 million following -EUR 1.7 million in the first six months of 2006.
Outlook for 2007
The Management Board expects that the significant factors influencing the first half of 2007 will continue for the rest of the year. In view of the above and the ongoing conversion to switch mode technology, the Management Board expects consolidated revenues and consolidated earnings for 2007 to remain below the figures of the successful prior year.
The two business units are expected to perform differently. FPS is set to perform very well, but will only be able to partly offset the performance of FMP for the year as a whole. Overall, the Management Board does not expect to catch up on the shortfall in first-half earnings during the remainder of the year. These forecasts have been made on the assumption that no unforeseeable events with a significant effect on the CEAG Group occur.
The half-yearly financial report can be downloaded at www.ceag-ag.com
More information:
CEAG AG
Ms. Gudrun Richter
Investor Relations
Tel.: +49 – 2532 – 81 158
E-mail: richter@friwo.de
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 is the world’s leading manufacturer of chargers for mobile telephones. It held a market share of some 28% in 2006. 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 351.7 million in 2006. CEAG AG’s principal shareholder is DELTON AG, which holds almost 77% of its capital
DELTON
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 more than 32,000 employees, the DELTON Group generated sales of around €2.6 billion in fiscal 2006.
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