Earnings Release • Nov 11, 2011
Earnings Release
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Corporate | 11 November 2011 18:13
Funkwerk AG advances in 9M 2011 thanks to reorientation
Funkwerk AG / Key word(s): Quarter Results
11.11.2011 / 18:13
PRESSE-MITTEILUNG
Funkwerk AG advances in 9M 2011 thanks to reorientation
– Two company sell-offs completed as part of reorientation
– Operative business trends remain restrained
– Consolidated sales for the continued operations at EUR 119.5m slightly down on the year; Loss before interest and taxes: EUR 7.0m
– 2011 as a whole: calculated on the basis of the small Group, stable sales volume and negative operating result in the low single-digit millions expected
Kölleda, 11 November 2011 – In the third quarter, Funkwerk AG achieved important interim goals as part of its radical reorientation. As part of its concentration on core activities, it sold off both Alpha Meß-Steuer-Regeltechnik GmbH and the entire Enterprise Communication division. The measures have impacted clearly on the financial statements as at 30 September 2011, as both sales have been factored into the Funkwerk consolidated figures.
Sold off during the third quarter, Alpha GmbH was completely deconsolidated in the quarterly financial statements, while the companies belonging to the Enterprise Communication division were not sold off until October and are carried separately. The continued operating activities of the Funkwerk Group primarily performed modestly owing to ongoing investment restraint by key client groups. In the third quarter, consolidated sales edged up 2.0 % to EUR 41.5m (Q3 2010: EUR 40.7m), but for the first nine months of 2011 consolidated sales volume was EUR 119.5m or 2.6 % down on the prior-year figure of EUR 122.7m. Of the total, in Q3 2011 EUR 61.8m (Q3 2010: EUR 60.0m) was accounted for by the largest Group segment, Traffic and Control Communication, and EUR 32.9m (Q3 2010: EUR 34.2m) by the Security Communication segment. The Automotive Communication segment was completely geared in the period under review to direct deliveries to the auto industry and sales for the retrofit market abandoned. The sales volume fell from EUR 22.5m to EUR 18.4 m.
Owing to the reorientation, from January to end of September 2011 countless restructuring measures were required and these likewise squeezed consolidated earnings. Moreover, considerable advance payments were needed to cover new projects. The loss before interest and taxes for the continuing activities came to EUR 7.0m for Q3 2011, compared to a loss of EUR 4.9m one year earlier; excluding restructuring costs, the loss on operating activities was EUR 6.4m, as against EUR 4.3m one year earlier. After deducting tax, the Funkwerk Group posted a net loss of EUR 11.6m (prior year: EUR 5.9m).
The Funkwerk Group is in the midst of a difficult phase of restructuring and in coming months will have to implement additional hard-hitting measures. In the fourth quarter Funkwerk will press ahead with its strategic realignment, with the priority in the last three months of the year being above all on adjusting workflow to the smaller size of the corporation. Moreover, the company is assessing selling off additional sub-segments that are not a part of core operations and focusing on creating leaner structured throughout the group. Here, central sections, such as Procurement or Development, will be bundled across the segments and the number of assembly and manufacturing hubs reduced. For business 2011 as a whole on the basis of the company sell-offs, the sales forecast has been adjusted to approx. EUR 170m (prior year, not adjusted: EUR 221m). Sales thus remain more or less stable compared with the prior-year volume after adjusting for the sell-offs.The loss on operating activities for the continuing activities, excl. the restructuring expense, will presumably be in the low single-digit millions.
You can consult the full interim report by clicking www.funkwerk.com or by visiting the Deutsche Börse homepage.
Funkwerk AG
Im Funkwerk 5
99625 Kölleda/Thüringen
Germany
Jörg Reichenbach
Investor Relations
Tel.: +49-36-35-600-346
Fax: +49-36-35-600-507
End of Corporate News
11.11.2011 Dissemination of a Corporate News, transmitted by DGAP – a company of EquityStory AG.
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| Language: | English |
| Company: | Funkwerk AG |
| Im Funkwerk 5 | |
| 99625 Kölleda | |
| Germany | |
| Phone: | +49 (0)3635 600 0 |
| Fax: | +49 (0)3635 600 507 |
| E-mail: | [email protected] |
| Internet: | www.funkwerk.com |
| ISIN: | DE0005753149 |
| WKN: | 575314 |
| Listed: | Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, Hamburg, München, Stuttgart |
| End of News | DGAP News-Service |
| - - - |
| 146005 11.11.2011 |
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