CEAG Posts Solid Business Performance in First Quarter of 2007
|
| 05/04/2007 |
|
| CEAG Posts Solid Business Performance in First Quarter of 2007 |
|
Ostbevern, Germany, May 3, 2007
Consolidated revenues again outstrip the strong prior-year quarterFPS business unit records pleasing growth
CEAG, manufacturer of high-quality FRIWO brand power supplies and chargers, put in a solid business performance for fiscal year 2007, as expected. Revenues and earnings were influenced by changes in the market important to the Company – the market for mobile telephones.
Industry Environment
In 2007, the global market for mobile telephones is set to grow at a slower pace than in the prior year. Forecasts expect growth in the lower double-digit range to over 1.1 billion units (2006: 991 million units, up 22%). In the first quarter of 2007, the performance of the relevant manufacturers varied widely, leading to significant shifts in market shares in some cases.
Unit Sales of the CEAG Group
The CEAG Group sold a total of 79.0 million power supplies and chargers in the first three months of the current year, up almost 28.0% on the prior-year quarter. This volume includes a comparatively high proportion of devices using linear technology, which will diminish over the coming quarters as the trend towards switch mode equipment continues.
Both business units contributed to unit sales growth. The FRIWO Mobile Power (FMP) business unit, which covers the high-volume market of mobile telephones, sold 71.3 million power supplies and chargers (up 27.4% on the same prior-year quarter). The FRIWO Power Solutions (FPS) business unit, which operates in markets such as household appliances and power tools, grew its unit sales in the first quarter by 33.5% to 7.7 million units.
Revenue and Earnings of the CEAG Group
Consolidated revenues rose by 17.5% to EUR 86.9 million in the first quarter. The appreciation of the euro against the US dollar, the currency which CEAG mostly uses for invoicing, put a damper on revenue growth.
The Group’s earnings before interest and taxes (EBIT) for the quarter came to EUR 2.5 million, down on the EUR 3.5 million generated in the same quarter of 2006. The lower earnings reflect the general rise in competition, especially for FMP, which affected the margins generated on individual projects. In addition, other cost factors relevant to CEAG (such as the price of copper) did not ease.
FMP recorded EBIT of EUR 1.4 million (prior-year quarter: EUR 3.5 million). The contribution of FPS to earnings is pleasing, with EBIT of EUR 1.8 million (prior-year quarter: EUR 0.7 million). The holding company’s EBIT amounted to -EUR 0.7 million, the same as in the first prior-year quarter.
Outlook for 2007
After CEAG more than doubled its revenues in the last two fiscal years, the Management Board believes that 2007 will be a year of consolidation due to a number of external factors (e.g. raw materials prices, energy costs, increase in the cost of labor in China), the divergent performance of some FMP customers, and potential exchange rate effects.
The interim notice for the first quarter of 2007 can be downloaded at www.ceag-ag.de.
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 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.
|
Download PDF |
|
|
|
|
