Funkwerk AG

Earnings Release • Nov 11, 2011

News Details

Ad-hoc | 11 November 2011 18:10

Funkwerk AG advances in 9M 2011 thanks to reorientation

Funkwerk AG / Key word(s): Quarter Results

11.11.2011 18:10

Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted
by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.

---

Funkwerk AG advances in 9M 2011 thanks to reorientation

• Two company sell-offs completed as part of reorientation
• 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. Sold off during the third quarter, Alpha GmbH was completely
deconsolidated in the quarterly financial statements, while according to
IFRS 5 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.

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. 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.

More information:

Funkwerk AG
Im Funkwerk 5
D-99625 Kölleda/Thüringen
Jörg Reichenbach
Investor Relations
Telefon: 0 36 35/6 00 -3 46
Fax: 0 36 35/6 00 -5 07
reichenbach@funkwerk.com

11.11.2011 DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de

---

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: info@funkwerk.com
Internet: www.funkwerk.com
ISIN: DE0005753149
WKN: 575314
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Düsseldorf, Hamburg, München, Stuttgart

End of Announcement DGAP News-Service

---