CEAG Group returns into the black in 2003
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| 03/22/2004 |
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| CEAG Group returns into the black in 2003 |
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- Manufacturer of power supplies and chargers discloses EBIT of 4.2 mill. EUR
- Upswing of mobile phone market inspired business development
- Groupwide strategic alignment generates positive impacts
Ostbevern/Bad Homburg, March 22, 2004 – CEAG AG, globally operating manufacturer of highly sophisticated power supplies and chargers of the FRIWO brand, has returned into the black in 2003 and discloses a sound positive result. The EBIT (Earnings Before Interest and Taxes) reachs 4.2 mill. euro after last year's loss of 16.1 mill. Euro that was caused by considerable restructuring cost. The after-tax profit reads 2.8 mill. euro (2002: shortfall of 25.1 mill. euro).
In 2003 the revenue development of the Group was heavily influenced by currency fluctuations, especially by the declining US dollar. The Group revenue fell by 12.5 percent to 167.4 mill. euro (previous year: 191.4 mill. euro), special item and currency rate adjusted, an increase of 6 percent would have been achieved.
The positive result development is mainly linked to two factors:
- CEAG benefited from the upswing of the worldwide mobile phone market in 2003 which exceeded all experts' speculations. With a market share of 25 percent CEAG is the world's leading manufacturer of power supplies and chargers.
- All implemented actions of the past years concerning cost savings and productivity increase, associated with an extensive reorganization of the company group, had a positive impact. This even allowed an improvement in margins despite lower revenues.
Performance of the Business Units
The Business Unit FRIWO Mobile Power (FMP) which concentrates on high-volume products for the telecommunication industry, increased its EBIT to 5.2 mill. euro (previous year: 4.0 mill. euro before restructuring costs). Revenue read 129.7 mill. euro after 149.0 mill. euro in 2002 (minus 13.0 percent). On the basis of steady currency exchange rates it would have climbed by 5 percent.
FRIWO Power Solutions (FPS), which operates in strongly segmented markets like Medical or IT & Communication, distinctly improved the EBIT from minus 7.2 mill. euro (2002 before restructuring cost) to minus 1.0 mill. euro. In consequence to currency fluctuations and because of the sale of a non strategic business (COMPIT) revenue dropped to 37.7 mill. euro (previous year: 42.3 mill. euro).
Sales development
In 2003 CEAG supplied 139.2 mill. power supplies and chargers worldwide. This represents an increase vs. 2002 of 13.5 percent. This development considerably accelerated within the year - analogically to the growing dynamics of the mobile phone market.
Rolf Endress, CEO of CEAG AG: "We are quite pleased with the business year 2003. In spite of ongoing difficult economic determinating factors and unfavourable currency exchange rates we kept our promise and have returned to profitability. The restructuring efforts of 2001 and 2002 paid off in form of cost savings and increased efficiency. Now we have to build on the positive earnings trend in 2004".
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 25 per cent in 2003, the 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 individual products are manufactured for IT & communication, power tools, automation and medical technology. With modern R&D centers, production facilities and sales locations in Europe, Asia, North- and South 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 reached a sales volume of approximately 2,2 billion EUR in 2003 with worldwide more than 20,000 employees.
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