CEAG AG: Shareholder meeting
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| 05/20/2003 |
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| CEAG AG: Shareholder meeting |
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CEAG AG:
Buoyancy prevails at the shareholders' meeting – return to profit zone after restructuring
Bad Homburg v. d. Hoehe, 20 May 2003
CEAG's business year 2002 was marked by the strategic reorganization - a task which demanded a great deal of the company's vigor and funds. The extensive action catalogue along with the consistently pursued cost saving program already generated a positive impact by year end. The company returned to the black in the preluding quarter.
These figures confirm the objective, to realize the forecasted turnaround within the current business year and to further expand its market share thanks to innovative product strategies on the worldwide power supply market.
A volatile business environment as well as a declining power supply market led to a strategic reorganization of CEAG AG last year which resulted in the splitting of the traditional business into the business units FMP (FRIWO Mobile Power) and FPS (FRIWO Power Solutions). In accordance with each operating scope, both business units were strategically realigned and equipped with efficient structures.
For three years, CEAG has also consistently pursued its cost savings program.
Cost savings linked to significant fixed cost reduction and design- and purchase-to-cost projects summed up to more than 20 mill. EUR in 2002. Nevertheless, CEAG generated an EBIT of minus 16.1 mill. EUR, of which 12.9 mill. EUR were caused by restructuring.
In the fourth quater 2002, however, the implemented program showed first consolidation success: the EBIT - adjusted by the one-time costs for the strategic reorganization - turned out positive at 0.7 mill. EUR. The first quarter of 2003 also yielded a profit with an EBIT of 0.5 mill. EUR and therefore signaled the turnaround.
At today's shareholders' meeting in Bad Homburg, Rolf Endress, Chairman of the board of directors of CEAG AG, substantiated the new route: "Last year we accepted a big challenge and repositioned our company future-oriented on a sturdy basis. This year we aim at categoric black figures. With significant break-even reduction we have set the stage for profitability and growth".
Following the presentation of the testified annual balance and the approval of the acts of the Management Board and Supervisory Board for the fiscal year 2002, the shareholder's meeting resolved a change of CEAG's articles of organization concerning the German Corporate Governance Codex and the Transparency and Disclosure Law. A large majority also approved the Profit and Loss Transfer Agreement between CEAG AG and the newly founded FRIWO Mobile Power GmbH. Since Stefan Quandt, sole shareholder and chairman of the supervisory board of CEAG has resigned, the shareholders' meeting appointed Dr. Antonius Wagner to protect the shareholders' interests. |
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