CEAG Group notes increasing business dynamics
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| 11/13/2003 |
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| CEAG Group notes increasing business dynamics |
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- Manufacturer of FRIWO power supplies and chargers benefits from upswing of mobile phone market
- Continuing positive income development in the third quarter of 2003
- Unchanged forecast for overall year
Ostbevern/Bad Homburg, November 13, 2003 – In the third quarter of 2003 the CEAG business development has improved significantly. The global player with its high-quality power supplies and chargers benefits from the improved forecasts for the mobile phone industry. The Group noted a distinct sales increase in the third quarter. In spite of unchanged negative currency rate impacts, quarterly revenue reached the level of last year's reporting period. The result has been further improved. CEAG also anticipates black figures for the entire year 2003.
Sales
Sales development of the CEAG Group has noticeably improved in the third quarter 2003. During the first three quarters of this year, the Group sold 95.4 mill. power supplies and chargers of the brand FRIWO (last year: 88.1 mill. units). This means a growth of 8.0 percent after an increase of 0.3 percent in the first half year. Third quarter sales increased from 28.9 mill. units (2002) by 23.9 percent to 35.8 mill. units.
Revenue
After nine months the group revenue was still influenced by the increasing Euro vs. the US$ as well as by constant price pressure. After 143.1 mill. EUR of last year's reporting period, revenue reached 120.8 mill. EUR between January and September. This represents a drop of 16 percent. In the first six months the decrease read 22 percent. On the basis of unchanging currency rates, i.e. the euro - dollar relation of last year, the group's revenue would have been stable in the first nine months. The third quarter generated a revenue of 42.8 mill. EUR and matched the level of last year (42.9 mill. EUR).
The income turnaround is - disregarding the restructuring cost of last year - the result of consistent and lasting cost reductions and efficiency increases within the entire CEAG Group.
Business Unit developmentCompared to the previous year, revenue of the business unit FRIWO Mobile Power (FMP dropped from 100.5 mill. EUR by 16% to 92.9 mill. EUR. If the currency rate of last year is applied, a growth of 2.2% would have been generated. The stronger revenue dynamics of the second half of the year is linked to the increasing stimulation of the mobile phone market and reflects the considerable sales of the business unit's third quarter. From January to September, FMP achieved an EBIT of 2.6 mill. EUR (2002: minus 3.3 mill. EUR)
The nine months revenue of the business unit FRIWO Power Solutions (FPS) dropped by almost 15% to 27.9 mill. Eur (2002: 32.6 mill. EUR). 6 percentage points are directly linked to currency exchange impacts. FPS' revenue development is still negatively influenced by the general weak consumer behaviour, especially in Germany. The business unit's EBIT improved within the first 9 months to minus 1.1 mill. EUR after minus 10.4 mill. EUR in 2002.
EBIT
In the first nine months of 2003, CEAG achieved a group income before interest and tax (EBIT) of 1.5 mill. EUR after a loss of 13.7 mill. EUR last year (without one-time restructuring cost: minus 3.7 mill. EUR). The third quarter generated an EBIT of 0.6 mill. EUR (last year: minus 0.6 mill. EUR). After including the financial income and taxes the Group closed at a nine months' surplus of 0.4 mill. EUR. In last year's reporting period a loss of 19.5 mill. EUR was recorded.
Outlook 2003
After the first nine months the Executive Board affirms its previous estimation. In spite of the price and currency rating induced revenue decline, the CEAG Group will return to the black and to profitability in 2003.
The detailed quarterly report is now available under www.ceag-ag.com .
For further information please contact
CEAG AG
Gudrun Richter
Investor Relations
Tel.: +49 – 2532 – 81 158
eMail: richter@friwo.de
CEAG AG - Germany
With the brand FRIWO and a market share of 27 per cent in 2002, the Prime Standard listed CEAG AG, holding of the FRIWO Group headquartered in Bad Homburg v. d. Hoehe, and headoffice in Ostbevern/Westfalen, Germany, is the worldwide leading supplier of chargers for mobile telephones.
Along with the chargers and power supplies for high-volume telephone and IT technology markets FRIWO Mobile Power (FMP) individual products are manufactured for IT & communication, power tools, automation and medical technology FRIWO Power Solutions (FPS) The group's turnover amounted to 191 million EUR in the financial year 2002. With modern R&D centers, production facilities and sales locations in Europe, Asia and America, CEAG is represented on all important markets of the world. Main shareholder is DELTON AG with almost 77 per cent of the capital stock.
DELTON AG
The DELTON AG, in Bad Homburg, bundles entrepreneurial investments of its sole shareholder Stefan Quandt. As a strategic management holding DELTON leads apart of the CEAG AG (power supply) value creating entrepreneurial activities in business sectors logistics, pharmaceuticals, and household products. Thus the enterprise commits itself in clearly defined segments of future oriented growth markets, in which on a global scale a market leading position is already achieved or targeted.
The group expects a sales volume of approximately 2.5 billion EUR in 2003 with worldwide more than 20,000 employees.
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