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CEAG Groups's Two Business Units Performing Differently After First Nine Months of 2007
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| 11/09/2007 |
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| CEAG Groups's Two Business Units Performing Differently After First Nine Months of 2007 |
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Press Release, Ostbevern, Germany,
FPS remains on its encouraging growth pathFMP’s mobile telephone business lags behind prior year
CEAG AG, manufacturer of high-quality FRIWO brand power supplies and chargers, again experienced different levels of performance in its FRIWO Mobile Power (FMP) and FRIWO Power Solutions (FPS) units in the first nine months of fiscal year 2007. While FPS remained on its path of encouraging growth, the revenues and earnings generated by FMP fell short of those achieved in the prior year due to an intensification of competition. Nevertheless, the Group as a whole performed solidly in the third quarter.
Unit Sales of the CEAG Group
The CEAG Group sold 218.9 million units in the first nine months of 2007, 2.2% more than in the prior-year period (214.2 million units). 70.4 million power supplies and chargers were sold in the third quarter, a 15.4% decline on the 83.2 million units sold in the same period in 2006.
The FMP business unit, which focuses on the high-volume market for mobile telephones, saw unit sales rise by a slight 1.4% to 197.1 million units after nine months. As already reported, the pace of growth slowed as the year progressed. This is mainly due to the discontinuation of linear device production in favor of more technically advanced switch mode products. While CEAG was the sole supplier to its biggest buyer of linear devices, customers tend to have more than one supplier of switch mode products.
The FPS business unit, which serves various markets such as IT and communications, household appliances and power tools, and industrial applications and medical technology, maintained its growth course thanks to a well-balanced customer portfolio. In the first nine months it sold 21.8 million power supplies and chargers, an increase of 10.2% on the same prior-year period (19.8 million units).
Revenues and Earnings of the CEAG Group
At EUR 240.7 million, consolidated revenues in the first nine months were 2.5% lower than the level achieved in the same prior-year period (EUR 246.7 million).
EBIT reached EUR 7.9 million (first nine months of 2006: EUR 11.2 million). Despite the revenue decline and the ongoing pressure being caused, among other things, by the appreciation of the euro, high raw material costs, and tougher price and competitive pressure at FMP, the Group still succeeded in generating EBIT of EUR 3.3 million in the third quarter (third quarter of 2006: EUR 3.5 million). The positive impact of ongoing process optimization played a role in this regard.
In the first nine months, FMP generated EBIT of EUR 5.9 million (prior-year period: EUR 10.6 million). FPS was able to significantly boost EBIT from EUR 2.6 million in the prior-year period to EUR 3.9 million.
Outlook for 2007 as a Whole
The Management Board has reaffirmed the trends stated in the half-yearly report. Consolidated revenues and earnings in 2007 will fall short of the prior-year figures due to the varied performance of some of FMP’s key customers, the continued intensification of competition, the discontinuation of linear device production, and the incurrence of additional costs. In this regard, the Management Board does not expect the decline in earnings experienced in the first nine months to be reversed in the fourth quarter.
The interim statement for the third quarter of 2007 can be downloaded at www.ceag-ag.com.
More information:
CEAG AG
Ms. 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 28% in 2006. 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 351.7 million in 2006. 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 more than 32,000 employees, the DELTON Group generated sales of around EUR 2.6 billion in fiscal 2006.
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