BERU AG / Release of an announcement according to Article 37x of the WpHG [the German Securities Trading Act]
09.05.2008
Interim report according to Article 37x of the WpHG
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BERU's business develops as planned in Q1 2008
(Ludwigsburg, May 9, 2008) The business of BERU Aktiengesellschaft,
Ludwigsburg, developed within the framework of expectations during the
first quarter of 2008. The automotive supplier posted consolidated sales
revenue of EUR 123.9 million in the first three months of this year, thus
achieving revenue growth of 6.1% compared with the same period of last
year(Q1 2007: EUR 116.8 million). Earnings before interest and taxes
(EBIT)also increased to reach EUR 15.6 million (EUR 14.8 million),
representing an EBIT margin of 12.6% (12.6%).
'The stabilization of the EBIT margin is partially due to the initial
success of the efficiency-enhancing program we started in December 2007,'
commented Executive Board Chairman Dr. Thomas Waldhier. 'We have been able
to reduce costs and improve our plants' productivity. However, we will have
to continue working on the optimization of our processes and structures.'
Satisfactory developments in all divisions
All three divisions - Diesel Cold Start Technology, Ignition Technology and
Electronics and Sensors - developed satisfactorily. In the core division -
Diesel Cold Start Technology - BERU achieved growth of 5.0%. Sales revenue
amounted to EUR 45.8 million (EUR 43.6 million), but was still below the
record level of 2006. In the Ignition Technology division, BERU posted
sales revenue of EUR 34.4 million (EUR 34.3 million). In the Electronics
and Sensors division, revenue increased by 12.3% from EUR 38.9 million to
EUR 43.7 million.
Aftermarket business better than in Q1 2007 - Original Equipment
progressing as planned
Following a weak previous quarter due to the mild winter of 2007, the
Aftermarket segment made a better start to this year: sales revenue
increased by 7.8% to EUR 33.3 million. In the Original Equipment segment,
BERU posted revenue growth of 7.2% to EUR 83.4 million. Higher sales
revenue was achieved in particular with the products PTC (auxiliary
heaters) and TSS (tire-pressure monitoring systems).
Stronger financial position
BERU once again improved its strong financial position. The Group's net
financial assets amounted to EUR 89.4 million at the end of the first
quarter, which was EUR 1.5 million higher than at December 31, 2007.
Comparison with a year earlier (EUR 104.7 million) is not meaningful
because a bank-guaranteed loan of EUR 35 million was granted in the
meantime. BERU granted this loan to BorgWarner Europe in September 2007.
Adjusted for this item, the net financial position amounted to EUR 124.4
million.
In the first quarter of 2008, BERU invested a total amount of EUR 5.8
million (EUR 7.1 million), which was fully financed out of the cash flow.
Confirmed forecast for 2008
The Executive Board has confirmed the forecasts for full-year 2008. Revenue
growth will be of a low single-digit percentage and EBIT of between EUR 40
million and EUR 45 million is targeted. The efficiency-enhancing program
decided upon in December 2007 will lead to savings of approximately EUR 2.2
million this year, while savings of around EUR 5 million per annum should
be achieved in the medium term. The worldwide workforce had been reduced by
about 90 persons in the context of this program by the end of April 2008.
BERU - key figures for the first quarter of 2008
(January 1 to March 31, 2008)
on the basis of unaudited figures <pre>
EUR million Q1 2008 Q1 2007
Sales revenue 123.9 116.8
Earnings before interest and taxes (EBIT) 15.6 14.8
Investment 5.8 7.1
Net financial position 89.4 104.7
Sales revenue by sales region
Germany 46.1 39.8
Europe (excluding Germany) 53.3 50.4
North America 8.5 9.5
Asia 11.9 12.5
Rest of the world 4.0 4.6
Sales revenue by segment
Original Equipment 83.4 77.8
Aftermarket 33.3 30.9
General Industry 7.2 8.1
Sales revenue by division
Diesel Cold Start Technology 45.8 43.6
Ignition Technology 34.4 34.3
Electronics and Sensors 43.7 38.9
Number of employees* 2,461 2,580</pre>
*At March 31
DGAP 09.05.2008
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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's business develops as planned in Q1 2008
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