CEAG AG: Weak mobile phone market considerably influences 3rd quarter figures
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| 11/07/2001 |
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| CEAG AG: Weak mobile phone market considerably influences 3rd quarter figures |
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Bad Homburg v. d. H./Ostbevern, 07.11.2001
For the SDAX listed CEAG AG (security identification code 620110), holding of the FRIWO Group and with the brand name FRIWO, worldwide leading supplier of chargers for mobile phones, the first nine months of the current business year have turned out unsatisfactory.
With total sales of 73 mill. power supplies and chargers, the previous year's volume of 73.5 mill. pcs has been approached. About 63 mill. units of this quantity derived from the mobile phone sector - thus representing a significant increase (previous year: 61 mill. pcs.) in a declining market.
Compared to last year's record result of the same period, CEAG had to cope with a sales drop from 15.3 percent to 153.2 mill. Euro (previous year: 180.8 mill. Euro) in the first 9 months.
This development is mainly linked to the domestic market with decreases of up to 46 percent, whereas sales have been increased by 16 percent in all other markets.
With 116.2 mill. Euro (previous year: 139.5 mill. Euro), the telecommunication sector remained the mainstay of turnover.
With 1.8 mill. Euro, the company result (EBIT) clearly remained below last year's result of 18.2 mill. Euro. In the first nine months, the EBIT return reached just 1.2 percent compared to 10.1 percent in the reference period of 2000.
At 54.3 mill. Euro, orders on hand also remained below the previous year (62.3 mill. Euro).
In spite of the current, uncertain economic situation and the earlier previous adjustment of turnover and result expectations for 2001, there is still no cause for too pessimistic prognoses.
Parallel to the slowly visible revival of the core business telecommunication - not least thanks to the forthcoming introduction of a new GPRS mobile phone generation - the continuing implementation of identified cost-saving measures helps to relieve the current margin pressure. Thanks to the cost leadership project (STEP), started mid 2000, cost savings of more than 10 mill. Euro have been achieved to date.
Further positive signals have been received from two sectors which will, in future, help to progressively reduce CEAG/FRIWO's dependency on the telecommunication market:
The POWERLINE product range experiences an increase of order intake.
In connection with the setting-up of a new business field called "Electronic Manufacturing Services (EMS)", i.e. the complete and customised sub-contracting for customers, CEAG/FRIWO encountered a lot of interest during the introduction and presentation of this service. Correspondingly, positive impacts on the further business development are expected medium-term.
Short portraits
CEAG AG. Germany
With the brand FRIWO and a market share of over 22 per cent, the CEAG AG, a holding of FRIWO Group headquartered in Bad Homburg v. d. Hoehe, Germany, is the worldwide leading supplier of chargers and power supplies for mobile telephones. Moreover, individual chargers and power supplies are manufactured for numerous applications in the electronic industry, information technology, medicine technology as well as in door and lock technology. The group's turnover amounted to 260.8 million EUR in the financial year 2000. Worldwide more than 8,000 people were employed. CEAG AG has manufacturing facilities in Europe, America and Asia. By expanding manufacturing locations in the U.S. and Mexico (1999) as well as by founding new sales offices in Japan and Brazil (2001), FRIWO consolidates its position on all important growing markets. Main shareholder is DELTON AG with almost 77 per cent of the capital stock. Since June 8, 2001, CEAG AG is SMAX quoted and since July 30 it is SDAX quoted.
DELTON AG
The DELTON AG, in Bad Homburg, bundles entrepreneurial investments of its sole shareholder Stefan Quandt. In the financial year 2000 the group achieved a sales volume of approximately 730 million euros and employed worldwide more than 10,000 employees. As a strategic management holding DELTON leads apart of the CEAG AG (power supply) value creating entrepreneurial activities in business sectors logistics, drugs, household products and fashion. 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 targetted.
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