BERU AG / Half Year Results
14.08.2008
Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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BERU AG presents its figures for the first half of 2008
(Ludwigsburg, August 14, 2008) The BERU Group, Ludwigsburg, posted revenue
of EUR 230.4 million in the first half of 2008, representing slight growth
compared with the first half of 2007 (EUR 224.2 million). The main sources
of revenue were the Aftermarket segment and the Electronics and Sensors
division. Profit from ordinary activities (EBIT) was reduced by one-time
special items and amounted to EUR 15.8 million (EUR 24.4 million).
Excluding the special items, adjusted EBIT amounted to EUR 23.1 million,
equivalent to an adjusted margin of 10.0%. BERU achieved a profit for the
period of EUR 12.3 million (EUR 18.5 million). Earnings per share in the
first half of this year amounted to EUR 1.20 (EUR 1.80).
Ongoing positive development of Aftermarket business
The 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
Sensors
The revenue generated by BERUs 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
program
Profit 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 Groups
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 demand
In 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
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 <pre>
EUR million H1 2008 H1 2007
Revenue 230.4 224.2
Cost of sales 165.0 155.8
Gross profit 65.4 68.4
Selling expenses 12.8 14.9
General administrative expenses 18.8 16.9
Research and development expenses 14.9 11.6
Other operating expenses 3.1 0.6
Profit on ordinary activities 15.8 24.4
Financial income 2.1 2.4
Profit before income taxes 17.9 26.8
Income tax expense 5.6 8.3
Profit for the period 12.3 18.5</pre>
Consolidated balance sheet <pre>
EUR million June 30, 2008 Dec. 31, 2007
Assets
Non-current assets 204.8 210.6
Current assets 281.6 282.6
Equity and liabilities
Equity* 363.1 363.3
Non-current liabilities 39.3 39.7
Current liabilities 84.0 90.2</pre>
*Including minority interest
Other key figures <pre>
H1 2008 H1 2007
Investment in property,
plant and equipment (EUR million) 4.5 11.7
Number of employees (June 30) 2,437 2,596</pre>
DGAP 14.08.2008
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Language: English
Issuer: BERU AG
Mörikestr. 155
71636 Ludwigsburg
Deutschland
Phone: +49 (0)7141 132-931
Fax: +49 (0)7141 132-586
E-mail: investor-relations@beru.de
Internet: www.beru.de
ISIN: DE0005072102
WKN: 507210
Listed: Regulierter Markt in Frankfurt (General Standard), Stuttgart;
Freiverkehr in Berlin, München, Hamburg, Düsseldorf
End of News DGAP News-Service
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DGAP-News: BERU AG: BERU AG presents its figures for the first half of 2008
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