BERU AG / Release of an announcement according to Article 37x of the WpHG [the German Securities Trading Act]
14.05.2009
Interim report according to Article 37x of the WpHG
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Interim disclosure pursuant to Section 37x of the
German Securities Trading Act (WpHG)
BERU Group presents financial results for Q1 2009
Ludwigsburg, May 14, 2009 - Due to the worldwide slump of automotive
markets, the BERU Group, based in Ludwigsburg, posted a 38.4% decline in
first-quarter revenue to EUR 76.3 million (Q1 2008: EUR 123.9 million).
EBIT (earnings before interest and taxes) decreased by 72.8% from EUR 15.6
million to EUR 4.2 million. The actions for the reduction of costs and
improvement of efficiency that have been consistently implemented since the
end of 2007 allowed BERU to achieve a low level of earnings.
Developments in the sales segments
Most of the revenue decline resulted from BERU's direct sales to automobile
manufacturers. The OEM segment's revenue amounted to EUR 44.8 million,
which is 46.2% lower than in the first quarter of last year.
The revenue generated in the Aftermarket segment decreased by 23.9% to EUR
25.4 million (EUR 33.3 million). This was mainly the result of the
restructuring that took place at the Group in the previous year. The
General Industry segment posted revenue of EUR 6.1 million (EUR 7.2
million).
Developments in the product divisions
The Diesel Cold Start Technology division reported first-quarter revenue of
EUR 27.7 million (EUR 45.8 million). The 39.5% decrease was partially
caused by the disproportionately sharp fall in registrations of new cars
with diesel engines, particularly in Germany.
BERU's Ignition Technology division generated revenue of EUR 25.6 million,
which is 25.5% less than in the prior-year quarter (EUR 34.3 million).
The revenue of the Electronics and Sensors division amounted to EUR 23.0
million (EUR 43.7 million). The substantial decrease was primarily due to
lower revenue from sales of the tire-pressure monitoring system, TSS, which
amounted to EUR 8.8 million compared with EUR 21.8 million in the first
quarter of 2008.
Strong financial position
BERU continued to improve its strong financial position. Net financial
assets (defined as cash and cash equivalents less liabilities to banks)
amounted to EUR 33.3 million, which is EUR 3.0 million higher than at
December 31, 2008. Taking into consideration the loan to BorgWarner Europe
GmbH, net financial assets increased compared with a year earlier to EUR
163 million (EUR 124.4 million including loan).
No revival expected in 2009
As before, BERU's Executive Board does not anticipate any recovery in
demand in the automobile industry in 2009. In order to achieve further cost
reductions, the company postpones the second stage (2.1%) of the
wage-tariff increase from May 2009 until December 2009.
'As long as the earnings situation has not stabilized, we will have to
continue our efforts to reduce costs,' emphasized Dr. Thomas Waldhier,
Chairman of the Executive Board (CEO) of BERU AG. 'Nonetheless, we are
working hard on important product innovations in order to secure BERU's
future.'
BERU's business development in Q1 2009 (January 1 - March 31, 2009)
Based on unaudited figures <pre>
Amounts in EUR million Q1 2009 Q1 2008
Revenue 76.3 123.9
Earnings before interest and taxes (EBIT) 4.2 15.6
Capital expenditure 0.7 5.8
Net financial position (including loan to BorgWarner 163.0 124.4
Europe GmbH)*
Revenue by sales region:
Germany 30.7 46.1
Europe (excluding Germany) 26.6 53.3
North America 3.1 8.5
Asia 11.9 11.9
Rest of the world 4.0 4.0
Revenue by sales segment:
Original Equipment Manufacturers 44.8 83.4
Aftermarket 25.4 33.3
General Industry 6.1 7.2
Revenue by product division:
Diesel Cold Start Technology 27.7 45.8
Ignition Technology 25.6 34.3
Electronics and Sensors 23.0 43.7
Number of employees* 1,898 2,461</pre>
*At March 31
DGAP 14.05.2009
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Language: English
Issuer: BERU AG
Mörikestr. 155
71636 Ludwigsburg
Deutschland
Internet: www.beru.de
End of News DGAP News-Service
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DGAP-IRE: BERU AG: BERU Group presents financial results for Q1 2009
| Source: EQS Group AG