CEAG grows revenues by 64% in the first half of the year
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| 08/10/2006 |
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| CEAG grows revenues by 64% in the first half of the year |
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Ostbevern, August 10, 2006
Manufacturer of power supplies and chargers continues to grow Consolidated EBIT increases almost five-fold to EUR 7.7 millionCEAG wins a greater share of the global mobile telephone market
The CEAG Group posted strong growth in revenues and earnings in the first six months of 2006, exceeding the Management Board’s expectations. The manufacturer of high-quality FRIWO brand power supplies and chargers benefited from the continuing growth of the mobile telephone market and the win of new projects for existing and new customers.
Unit Sales
With the mobile telephone market continuing to grow strongly, the CEAG Group produced 131.0 million power supplies and chargers in the first half of the year, up 50.6% on the same prior-year period (87.0 million units). All plants were operating at full capacity and production capacity had to be expanded. Deliveries were always made on time despite demand rising by more than 50%.
The FRIWO Mobile Power (FMP) business unit, which focuses on the high-volume market of chargers for mobile telephones, recorded 51.0% sales growth to 118.2 million units (first half 2005: 78.3 million units). The business unit thus by far outperformed the mobile telephone market as a whole. CEAG therefore increased its market share in the period under review and further extended its position as the world’s biggest manufacturer of power supplies and chargers (world market share 2005: 23%).
The FRIWO Power Solutions (FPS) business unit, which focuses on highly fragmented markets such as household appliances and power tools or medical technology, achieved unit sales of 12.8 million units (up 47.5%) in the first half of the year (prior-year period: 8.6 million units).
The CEAG Group achieved revenue growth of 64.0% to EUR 154.5 million in the first six months (first half 2005: EUR 94.2 million). Revenues grew more strongly than unit sales thanks to a higher percentage of products incorporating switch mode technology, for which higher prices can be realized on the market than for conventional linear technology. In the second quarter, consolidated revenues came to EUR 80.6 million, up 60.3% on the same prior-year quarter (EUR 50.3 million).
Revenue and Earnings
The Group reported half-yearly earnings before interest and taxes (EBIT) of EUR 7.7 million, almost five times more than the prior-year figure (EUR 1.6 million), despite some considerable increases in costs, especially for raw materials but also for the supply of energy to the Chinese plants. The EBIT operating margin, in relation to revenues, grew from 1.7% to 5.0%. Consolidated net profit rose from EUR 1.1 million to EUR 6.4 million.
Consolidated EBIT for the second quarter came to EUR 4.2 million (prior-year quarter: EUR 1.0 million). Net profit for the quarter reached EUR 3.8 million (second quarter 2005: EUR 0.7 million).
Performance of the Business Units
The FMP business unit increased revenues in the first six months by 81.6% from EUR 64.9 million to EUR 117.8 million. EBIT rose from EUR 2.2 million to EUR 7.8 million.
The FPS business unit reported a 25.1% rise in revenues in the first six months, up EUR 29.3 million to EUR 36.7 million. EBIT amounted to EUR 1.6 million after EUR 0.7 million in the first half of 2005.
The EBIT of the holding company, CEAG AG, disclosed separately for the first time in the current fiscal year, came to -EUR 1.7 million following -EUR 1.3 million in the first six months of 2005.
Outlook for 2006
The Management Board reaffirms its forecast of clear double-digit growth in unit sales and revenues for the CEAG Group for the year 2006 as a whole. A considerable improvement in the results of operations is also expected. However, the results for the first six months cannot be extrapolated to the entire year because it will not be possible to pass on to customers all of the significant cost increases in some areas in the second half.
Rolf Endress, CEO of the Management Board of CEAG AG: “We are pleased with the dynamic business performance in the first half of the year. We prepared ourselves for the high level of demand in plenty of time and were thus able to reap maximum benefit from the fast growth of the mobile telephone market.”
More information:
CEAG AG
Mrs. 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 operates in the mobile telecommunication market and is the world’s leading manufacturer of chargers for mobile telephones. It held a market share of some 23% in 2005. 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 230 million in 2005. CEAG AG’s principal shareholder is DELTON AG, which holds almost 77% of its capital.
DELTON AG
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 close to 29,000 employees, the DELTON Group generated sales of around EUR 2.4 billion in fiscal 2005.
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