CEAG AG publishs the semi-annual report
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| 08/03/2005 |
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| CEAG AG publishs the semi-annual report |
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Over 30% Growth for the CEAG Group in the First Half of 2005
Both business units record considerable revenue growth
First positive effects from new customers in the FMP business unit
Positive first-half earnings
Ostbevern, August 3, 2005 – after the first six months of 2005, CEAG AG is on a clear growth path in terms of unit sales and revenues. The manufacturer of high-quality FRIWO brand power supplies and chargers improved its results of operations in the first six months. The Management Board expects the positive business performance to continue for the year as a whole.
Unit Sales
Unit sales growth in the CEAG Group picked up in the second quarter. 46.5 million power supplies and chargers were manufactured and sold from April to June 2005. This represents an increase of 43% against the same prior-year quarter (32.4 million units). In the first half of the year, unit sales grew 30.7% to 87.0 million units after 66.5 million in the same period of the prior year.
In June 2005, CEAG sold its one billionth power supply/charger since the foundation of Friemann & Wolf Gerätebau GmbH (FRIWO) in 1971. The increasing pace of growth in the markets in which CEAG operates is evidenced by the fact that the 750 millionth unit was manufactured as recently as November 2003.
The FRIWO Mobile Power (FMP) business unit, which caters to the high-volume mobile telephone market, sold 78.3 million units in the first half, compared to 60.9 million units in the same prior-year period (up 28.5%). The business unit benefited from the further growth of the global mobile telephone market, which is forecast to increase by 16% to some 780 million telephones for 2005 as a whole.
The FRIWO Power Solutions (FPS) business unit, which focuses on highly fragmented markets such as medical technology or household appliances and power tools, achieved unit sales of 8.6 million units (up 54.5%) in the first half of the year.
Revenue and Earnings
The CEAG Group achieved revenues of EUR 94.2 million in the first six months – up 33.8% on the same period in 2004 (EUR 70.4 million). Revenues for the second quarter came to EUR 50.3 million after EUR 35.7 million in the same quarter last year (up 40.9%).
The good performance of unit sales and revenues of the CEAG Group has yet to be fully reflected in earnings, as the drop in gross margin shows. The high cost of our most important raw materials is responsible for this development. Additional costs were also incurred in the first half of the year to expand operations and to create the required production and sales capacity.
Nonetheless, earnings before interest and taxes (EBIT) increased from EUR 1.0 million in the prior-year period to EUR 1.6 million in the first six months of this year. The second quarter accounted for EUR 1.0 million of this amount (second quarter 2004: EUR 0.4 million). Consolidated net profit rose from EUR 0.5 million (prior year) to EUR 1.1 million.
Performance of the Business Units
Revenues for the FMP business unit came to EUR 64.9 million in the first half, up 32.8%. This growth is partly attributable to higher revenues with a major customer in the mobile telephone market. In addition, CEAG succeeded in winning new customers in the first six months, especially in Asia, which had a first positive impact on revenues. The FMP business unit grew EBIT from EUR 0.7 million in the prior-year period to EUR 1.1 million in the first half of this year.
The FPS business unit reports first-half revenues of EUR 29.3 million (up 36.0%). This growth is due to new customers and projects that were not, or only partly, reflected in the prior-year period, as well as more successful new customer wins in the first six months of 2005. At EUR 0.5 million, the business unit’s EBIT exceeded the EUR 0.3 million generated in the first half of 2004.
Outlook for 2005
The Management Board expects growth to continue after the strong rise in unit sales and revenues in the first six months. On the expense side, the cost of raw materials remains high and the value of the Chinese currency (renminbi or yuan) has increased against the US dollar. In addition, a considerable increase in wages at the Chinese plants is expected in the second half of the year. Energy shortages also pose a risk to production in China.
More information:
CEAG AG
Ms. Gudrun Richter
Investor Relations
Tel.: +49 – 2532 – 81 158
E-mail: richter@friwo.de
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