Earnings Release • Mar 28, 2013
Earnings Release
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Corporate | 28 March 2013 13:12
Funkwerk AG publishes 2012 consolidated financial statements
Funkwerk AG / Key word(s): Final Results
28.03.2013 / 13:12
Funkwerk AG publishes 2012 consolidated financial statements
Kölleda, 28 March 2013 – Funkwerk AG, Kölleda, reports initial positive effects of the primary measures in its restructuring programme put in place in the 2012 financial year. Above all, aspects such as the sale of companies as part of its focusing strategy alongside leaner corporate structures, the introduction of sustainable processes and reduced inventories have already made an impact on the group, improving its competitive position and increasing its efficiency. On this basis, Funkwerk AG plans to play to its strengths more effectively in the future and return the company to sustainable earning power.
Along with the challenges of the restructuring programme, which had a marked effect on the development of Funkwerk in 2012, business was hampered by restrained demand in the public sector as well as by considerable pricing pressure. As a result, consolidated sales of the continued segments were down around 4 per cent on the prior-year figure, reducing from EUR 146.9m to EUR 141.3m. Both figures were adjusted for sold operations. The most significant sale in the reporting year concerned Funkwerk Dabendorf GmbH, which had consolidated the main activities of the group's Automotive Communication (AC) segment. The group's Enterprise Communication segment had been sold a year earlier, leaving the group to focus on its two remaining strategic segments, Traffic & Control Communication (TCC) and Security Communication (SC).
Despite reduced business volume, consolidated earnings in 2012 increased due mainly to the measures taken to improve the group's profitability. As a result, Funkwerk posted positive operating earnings (before impairment and restructuring costs) of EUR 1.9m, after EUR -0.5m in the previous year. The EBIT and net earnings of the continued business segments remained notably negative at EUR -5.1m (2011: EUR -6.3m) and EUR -8.0m (2011: EUR -12.1m), respectively, but also reflect the upward trend in earnings. Earnings per share stood at EUR -0.99, up from EUR -1.51 in the previous year.
The financial situation of the Funkwerk group with a total workforce of 859 as at 31 December 2012 (2011: 885) was stabilised. Cash inflows mostly from the sale of companies helped improve free cash flow from EUR -6.4m to EUR 1.2m. Equity reduced from EUR 48.7m to EUR 32.2m on the prior-year cutoff date. In proportion to the group's total assets of EUR 113.1m at the end of 2012, this corresponds to an equity ratio of 28.5 per cent (2011: 30.8 per cent).
Changes introduced as part of the group's reorientation strategy also affected the Executive Board of Funkwerk AG: Restructuring expert Dr Christian E. Baur, who had been appointed to oversee the stringent implementation of the programme, left the company at the end of December after completing his assignment. Johann Schmid-Davis and Carsten Ahrens as the two previous members of the board also retired from the company when their contracts expired at the end of 2012. Since then, Funkwerk AG has been managed by Dr Manfred Lerch as sole director. Mr Lerch has been on the Executive Board since 1 November 2012.
The cost savings produced as a result of the restructuring measures will take full effect in the 2013 financial year . Competition, however, is predicted to further intensify alongside increased pricing pressure. Despite these prospects, the company expects to continue its positive earnings trend in the current year. Consolidated sales from today's vantage point will remain steady.
Strategically, the Funkwerk group will in future focus primarily on its technological expertise to position itself increasingly as a development and technology centre. Investments in its product portfolio will be made specifically in key components and greater attention will be given to improving the group's profitability. The planned expansion into international markets will progressively be driven through partnerships and cooperation agreements. Funkwerk AG additionally sees opportunities open up in end-to-end solutions and is planning as a result to consolidate its position as a full system provider.
The full annual report is available on the Internet at www.funkwerk.com .
For further information please contact:
Funkwerk AG
Im Funkwerk 5
99625 Kölleda/Thuringia
Germany
Kerstin Schreiber
Phone: 03635 458 500
Fax: 03635 458 399
E-mail: [email protected]
End of Corporate News
28.03.2013 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 München; Freiverkehr in Berlin, Düsseldorf, Hamburg, Stuttgart |
| End of News | DGAP News-Service |
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| 205548 28.03.2013 |
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