2006 a Successful Year for the CEAG Group
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| 03/21/2007 |
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| 2006 a Successful Year for the CEAG Group |
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Ostbevern, March 21, 2007
2006 a Successful Year for the CEAG Group
Significant improvement in the Group’s position as the world’s biggest manufacturer of chargers for mobile telephones, with a 28% market shareConsolidated revenues up 53% to EUR 351.7 millionConsolidated EBIT more than doubled to EUR 13.4 million
CEAG AG, manufacturer of high-quality FRIWO brand power supplies and chargers, reports very successful results for fiscal year 2006. Unit sales and revenues increased thanks to the continued growth of the mobile telephone market and the significant expansion of business. Earnings also improved substantially, despite some considerable negative effects.
Unit Sales
The CEAG Group sold 310.4 million power supplies and chargers in 2006, up 48.1% on the prior year. The three Chinese plants were operating at high capacity and again had to be expanded substantially.
The FRIWO Mobile Power business unit (FMP), which caters to the high-volume mobile telephone market, achieved 49.2% growth in unit sales year on year thanks to the continued vigor of that market, selling 282.9 million units. FMP’s growth rate was thus more than twice that of the global mobile telephone market (around 21.0% in 2006) and was driven by the significant increase in business with existing customers and the acquisition of new customers and new projects. This allowed CEAG to extend its lead as the world’s biggest manufacturer of power supplies and chargers for mobile telephones, increasing its market share by some 5 percentage points to 28%.
The FRIWO Power Solutions (FPS) business unit, which operates in different markets focused on applications such as household appliances, medical technology and power tools, recorded an increase of 36.8% to 27.5 million units, marking a continuation of the prior year’s growth.
Revenues
As in the prior year, consolidated revenues rose faster than unit sales, climbing 52.8% to EUR 351.7 million thanks to the further increase in the share of revenues contributed by power supplies and chargers incorporating higher-priced switch mode technology.
The FMP business unit increased its revenues by 63.5% year on year to EUR 272.6 million. FPS saw its revenues grow by 25.0% to EUR 79.1 million.
Earnings
Earnings were shaped by the dynamic growth of revenues. This growth contrasted with considerable increases in costs, especially continued high raw materials prices, wage increases at the Chinese plants, regular energy shortages in China and write-downs of EUR 1.9 million related to the insolvency of the mobile telephone manufacturer BenQ Germany.
Despite these charges and high price and competitive pressure, consolidated EBIT in the year under review rose to EUR 13.4 million, more than double the EUR 5.6 million recorded in the prior year. Consolidated net profit amounted to EUR 11.4 million, also more than twice the prior year’s figure (EUR 4.2 million).
Outlook for 2007
The global mobile telephone market is set to continue expanding in 2007, although growth rates are expected to be lower than in the past. Despite the strong volume growth achieved in 2006, the Management Board believes that a further increase in unit sales and revenues is possible in 2007. Whether such growth will translate into a renewed improvement in consolidated earnings will depend to a significant degree on external factors such as raw materials prices, wages in China and price pressure on the market.
Rolf Endress, CEO of the Management Board of CEAG AG:
“CEAG was prepared for the surge in demand in the fiscal year and was thus able to benefit from the dynamic growth of the market more than others. We have every reason to be satisfied with the year 2006. We are well equipped to face the challenges that the markets will bring in 2007.”
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 €2.6 billion in fiscal 2006.
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