 |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Continued growth for BERU in latest 6-month period“We have fully achieved our operative growth targets despite weak demand for automobiles and tougher competition. At the same time, BERU has once again succeeded in proving its operational efficiency and strong profitability with an EBIT margin of above 14%,” commented Marco von Maltzan, Chairman of the Executive Board of BERU AG, on the half- year results. Strong growth by Diesel Cold-Start Technology Strong growth by Diesel Cold-Start Technology BERU’s core division of Diesel Cold-Start Technology posted growth in sales revenues of 14.3% to EUR 91.8 million, compared with EUR 80.3 million in the same period of last year. The main growth drivers were the increased OEM sales of glow plugs and ISS diesel instant- start systems. BERU succeeded in maintaining its leading role in this technologically demanding segment and gained additional market share. The Group profited from the diesel trend in Western Europe. Lower sales revenues for Ignition Technology The division of Ignition Technology, which supplies components for gasoline engines, posted sales revenues EUR 55.5 million, which was 3.3% lower than the EUR 57.4 million of the prior-year period. Whereas sales of ignition coils developed according to plan, sales revenues from spark plugs remained below expectations due to the weaker demand for gasoline engines and increased pressure on prices. The sales revenues contributed by the BERU Eyquem subgroup, which is chiefly responsible for the Group’s production of spark plugs, were lower than projected for the half-year under review. The contribution to operating profit was also not yet satisfactory. Management is therefore currently assessing, whether the already initiated measures for a sustained improvement in profitability within the next two or three years actually have the potential to achieve this goal. Growth for Electronics and Sensor Technology The BERU Group’s youngest division of Electronics and Sensor Technology achieved an 18.1% increase in sales revenues to EUR 49.7 million, compared with EUR 42.1 million in the prior-year period. Growth was particularly strong for PTC auxiliary heating systems for vehicle interiors, which are mainly used in vehicles with diesel engines. The Group anticipates further increases in sales revenues from these products next year. As expected, sales revenues from tire-pressure monitoring systems were slightly below the prior-year level at EUR 10.4 million, due to the altered scenario for the mandatory introduction of this equipment in the United States (EUR 11.5 million). The Group therefore anticipates significantly higher revenues in the next two years. Sales growth in OEM business and Aftermarket BERU increased its sales revenues from the OEM business by 12.8% to EUR 130.1 million during the period under review (EUR 115.3 million). In the Aftermarket sales segment, BERU recorded an increase in sales revenues of 2.6% to EUR 55.0 million (EUR 53.6 million). The Group has succeeded in further improving its already strong aftermarket position in Germany and the rest of Europe, and also strengthened its profitability in the General Industry business segment, which increased its sales revenues by 9.2% to EUR 11.9 million (EUR 10.9 million). International growth above all in Europe and Asia In the six-month period under review, the Group increased its sales revenues in its most important market of Europe (excluding Germany) by 16.5% to EUR 97.4 million (EUR 83.6 million). Revenues in Germany, the domestic market, rose only slightly from EUR 57.0 million to EUR 58.0 million. This was primarily because of lower unit sales of diesel vehicles in the second quarter. Sales revenues in North America were close to the prior-year level at EUR 20.3 million (EUR 20.2 million). The sales region of Asia recorded a 17.3% increase in sales revenues to EUR 16.3 million (EUR 13.9 million), due to the growing popularity of diesel vehicles, whereas sales revenues in the other overseas markets were slightly below the prior-year level at EUR 5.0 million (EUR 5.1 million), due to exchange-rate effects. The Group has succeeded in expanding its presence in international markets: the share of sales revenues generated outside Germany rose to 70.5% (68.3%). Strong financial position BERU once again demonstrated its financial strength with a 27.5% increase in Group cash flow to EUR 34.8 million (EUR 27.3 million). The operative free cash flow rose to EUR 17.5 million (EUR 8.8 million). Cash and cash equivalents at the end of the half-year amounted to EUR 86.3 million, compared with EUR 100.6 million at the end of the first quarter. The net financial position decreased by EUR 13.4 million compared with the end of the first quarter to EUR 66.1 million (EUR 79,5 million), primarily due to the dividend distribution of EUR 11.8 million and tax payments of EUR 7.6 million. As of September 30, 2005, BERU employed a total workforce of 2,715 persons (2,621). Outlook In view of high energy prices and the related consumer uncertainty, BERU anticipates a low level of demand for automobiles in the third quarter of 2005 (October 1 - December 31, 2005). The market and competitive environment is still affected by increasing pressure on prices and margins. With the publication of the half-year figures, for the first time the Executive Board is issuing a guidance for the short financial year (April 1 - December 31, 2005), which was approved by the Annual Shareholders’ Meeting of BERU AG on September 21, 2005. “We expect growth in sales revenues of around 5% in the short financial year, and intend to increase our operating profit by a similar rate,” stated Marco von Maltzan, Chairman of the Executive Board of BERU AG. The Group anticipates an operating margin in the nine-month period of between 13% and 14% of sales revenues. In operational terms, BERU believes that with its strong product pipeline it is well positioned for future growth with its core division of Diesel Cold-Start Technology and its youngest division of Electronics and Sensor Technology. BERU AG will publish its audited financial statements for the short financial year 2005 on March 30, 2006. Consolidated statement of income
Consolidated balance sheet
Other key figures
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
