 |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BERU AG presents its figures for the first half of 2008Ongoing positive development of Aftermarket businessThe Aftermarket business, which had been very weak in 2007, made a better start to 2008. The positive trend continued in the second quarter, with the result that BERU achieved revenue growth of 6.2% to EUR 59.8 million in the first half of the year (EUR 56.3 million). In the Original Equipment segment, first-half revenue increased by 1.8% from EUR 154.5 million to EUR 157.3 million, but was still lower than BERU had expected. Diesel Cold Start Technology weak – strong growth for Electronics and SensorsThe revenue generated by BERU’s core division of Diesel Cold Start Technology decreased to EUR 81.5 million (EUR 82.6 million). This development was mainly the result of the strong euro and the ongoing pressure of prices and competition. Nonetheless, BERU defended its globally leading position in the field of diesel cold start technology. First-half revenue posted by the Ignition Technology division increased slightly by 1.1% to EUR 65.9 million (EUR 65.2 million). The increase was primarily due to unit sales of ignition coils and other ignition components as well as aftermarket sales. Electronics and Sensors increased its revenue by 8.6% to EUR 83.0 million in the first half of the year (EUR 76.4 million). The growth driver in this division was the tire-pressure monitoring system (TSS); its revenue rose by 16.6% to EUR 40.0 million (EUR 34.3 million). Earnings reduced by special items; continuation of efficiency-enhancing programProfit from ordinary activities (EBIT) for the first half of 2008 amounted to EUR 15.8 million (EUR 24.4 million), equivalent to an EBIT margin of 6.9% (10.9%). Earnings were substantially reduced by one-time special items such as restructuring expenses at sites outside Germany as well as non-scheduled depreciation and impairments. Increased warranty expenses also had a negative impact. These effects were only partially offset by internal savings. Excluding the special items, however, the Group’s adjusted earnings were similar to the prior-year level. BERU will continue to work intensively on optimizing its processes and structures and on improving its productivity. Since the start of the efficiency-enhancing program in December 2007, 130 jobs have been cut worldwide. The Group has ceased production at its site in Mexico and will soon close a production facility in Italy. In addition, effective August 1, 2008, BERU has sold its 49% equity interest in the Dutch joint venture IMPCO-BERU Technologies B.V. Outlook worsened by weak demandIn view of weak demand, the increasing pressure on selling prices and rising prices for raw materials and energy, the Executive Board meanwhile expects a slight decrease in total revenue of approximately 3-4% for the full year. Due to the negative special items, the targeted EBIT of between EUR 40 million and EUR 45 million is unlikely to be achieved. In fact, BERU has corrected its EBIT forecast to EUR 30-35 million. Excluding the special items, adjusted earnings will be close to the level of the previous year. “In order to maintain our competitiveness in the long term, we have to increase our efforts to reduce costs and improve productivity,” emphasized CEO Dr. Thomas Waldhier. “In parallel, we will continue to strengthen our innovative skills.” The Executive Board expects 2009 to be a year of consolidation. Slight growth should be achieved once again as of 2010. The Half-Year Report 2008 can be found on our website at http://www.beru.com/half_year_report . BERU business development in the first half of 2008 (January 1 - June 30, 2008)(on the basis of unaudited figures) Consolidated income statement
Consolidated balance sheet
1Including minority interest Other key figures
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
