CEAG Goup publishs the First Quarter 2005
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| 05/13/2005 |
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| CEAG Goup publishs the First Quarter 2005 |
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CEAG Group Boosts Revenue in the First Quarter of 2005
Revenue up 27%
Positive quarterly result in spite of additional costs
Cautiously optimistic on prospects for 2005
Ostbevern, May 12, 2005 – CEAG AG reported significant unit sales and revenue growth in the first quarter of 2005. The globally operating manufacturer of high-quality power supplies and chargers under the FRIWO brand is back on track for growth in terms of both unit sales and revenue. The Group closed the first quarter with a profit.
Unit Sales
The CEAG Group sold a total of 40.5 million power supplies and chargers from January to March 2005. This translates into an increase of 19% on the figure for the same period in 2004 (34.1 million units).
The FRIWO Mobile Power business unit (FMP), which caters to the high-volume mobile telephone market, achieved 16% growth year on year, selling 36.5 million units. This figure by far surpasses the rate of growth in the global mobile phone market which, according to calculations by the market research institute Strategy Analytics, increased by only 10% in the first quarter. CEAG is the world’s number one manufacturer of mobile phone power suppliers and chargers.
The FRIWO Power Solutions (FPS) business unit, which operates in highly fragmented markets such as medical technology, household appliances and power tools, sold 4.0 million units, a 62% increase, continuing the dynamic trend of the prior year.
Revenue and Earnings
Consolidated revenues for the first quarter totaled EUR 44.0 million, 26.8% up on the figure for the same prior-year period (EUR 34.7 million).
Consolidated earnings before interest and taxes (EBIT) reached EUR 0.6 million, matching the level in Q1 2004.
Consolidated net profit in the first quarter came to EUR 0.4 million, compared with EUR 0.3 million in the first three months of 2004.
Performance of the Business Units
The revenues of the FMP business unit amounted to EUR 29.7 million in the first three months (prior-year period: EUR 24.7 million). At 20.5%, revenue growth outperformed unit sales growth thanks to a larger share of higher-price switch mode devices.
EBIT came to just under EUR 0.6 million (first quarter 2004: EUR 0.6 million). Year on year, FMP’s cost base increased as a result of the expansion of the sales network in Asia and the necessary extension of capacities at the three Chinese production plants. In this year, project start-up costs such as air freight and model construction expenses, were also incurred.
Thanks to new products and customers, the FPS business unit upped its revenues by 43% to EUR 14.3 million in the first three months. However, additional costs meant that EBIT improved only negligibly to EUR 0.1 million, after a break-even result in the prior-year period.
Outlook for 2005
Persisting cost-related risks, including the high prices for raw materials, a potential appreciation of the renminbi against the US dollar, and rising wages in South China, make it hard to forecast results for the whole of 2005.
Once again, the winning of new key accounts heads the FMP business unit’s list of priorities. The FPS business unit is set to continue its upward trend, fueled by new products and customers.
The Management Board expects revenue growth for 2005 in both business units and hence for the Group as a whole. At this point in time, we are unable to predict with any certainty to what extent this growth will be mirrored in earnings.
More information:
CEAG AG
Ms. Gudrun Richter
Investor Relations
Tel.: +49 – 2532 – 81 158
E-mail: richter@friwo.de
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