News

CEAG Increases Revenue and Earnings in the First Quarter

May 01, 2006 by Jeff Shepard

The CEAG Group, the manufacturer of FRIWO power supplies and chargers, reported significant growth rates in unit sales and revenues for the first three months of the current year and has improved its results of operations. The driving force behind this development remains the growing mobile telephone market as well as the successful acquisition of new customers.

The CEAG Group sold a total of 61.7 million power supplies and chargers in the first quarter of this year. This translates into an increase of 52.2% on the figure for the same prior-year period (40.5 million units). CEAG had previously increased capacities in its three Chinese plants to meet the high level of demand expected.

Both business units contributed to this performance with high double-digit growth rates. The FRIWO Mobile Power (FMP) business unit, which caters to the high-volume mobile telephone market, sold 56.0 million units in the first three months, compared to 36.5 million units in the same prior-year period (up 53.1%).

The FRIWO Power Solutions (FPS) business unit, which focuses on highly fragmented markets such as medical technology, household appliances and power tools, was able to increase the number of units sold to 5.8 million in the first three months, an increase of 44.3% on the 4.0 million units sold in the same prior-year period.

The CEAG Group reports revenues of EUR 73.9 million in the first three months, up 68.2% on the same period in 2005 (EUR 44.0 million). Revenues grew more strongly than unit sales thanks to a higher percentage of products incorporating switch mode technology, for which higher prices can be realized than for conventional linear technology. In the first quarter, switch mode products accounted for 67% of revenues (first quarter 2005: 61%).

The Group's earnings before interest and taxes (EBIT) for the quarter came to EUR 3.5 million, well up on the EUR 0.6 million generated in the same prior-year quarter. The EBIT operating margin, in relation to revenues, grew by 3.2 percentage points to 4.7%. Consolidated net profit for the first three months of 2006 rose from EUR 0.4 million to EUR 3.1 million.

To enhance transparency, CEAG reported the results of the group holding company, CEAG AG, as a separate segment starting in fiscal year 2006. The prior-year figures for all segments have been adjusted accordingly. The FMP business unit generated revenues of EUR 56.5 million from January to March 2006, up 90.3%. This strong growth is attributable to the dynamic performance of the mobile telephone market, the revenues generated by new FMP customers and the greater share contributed by switch mode technology. The business unit improved its EBIT from EUR 1.0 million to EUR 3.5 million. The FPS business unit increased its revenues by 22.2% to EUR 17.4 million in the first quarter. EBIT reached EUR 0.7 million (first quarter of 2005: EUR 0.2 million). The holding company�s EBIT came to -EUR 0.7 million after -EUR 0.5 in the same quarter of the prior year