Funkwerk AG

M&A Activity • Mar 21, 2012

News Details

Ad-hoc | 21 March 2012 13:07

Funkwerk AG sells Avionics GmbH subsidiary

Funkwerk AG / Key word(s): Disposal/Preliminary Results

21.03.2012 13:07

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Funkwerk AG sells Avionics GmbH subsidiary

Rigorous focusing strategy continues

Preliminary annual figures for 2011: Consolidated sales marginally below
prior-year result; earnings in negative single-digit millions

Kölleda, 21 March 2012 - Funkwerk AG today sold all shares in Funkwerk
Avionics GmbH, Waal; the subsidiary was taken over by investment and
management company DREI Unternehmensbeteiligung GmbH, Lübbecke. The
purchase price ranges in the significantly low single-digit millions.

The contract rigorously continues the strategic reorientation initiated by
Funkwerk in 2011 to focus on the company's core sectors. The aim is to
concentrate primarily on growth fields with strong margins shedding any and
all peripheral sectors in order to use the company's resources more
efficiently. Key transactions selling Alpha Meß-Steuer-Regeltechnik GmbH
and the Enterprise Communication segment were finalised in 2011 adding
stability to the group's financial situation. This further improved with
the recent sale of Funkwerk Avionics GmbH.

Funkwerk Avionics GmbH operates in the aerospace industry. Its product
range includes radio equipment, emergency transmitters, navigation
technology, transponders, and displays for small and light aircraft. The
company, which employed around 24 people generating sales of around EUR
3.4m along with earnings before interest and taxes of just under EUR 0.2m
in 2011, is no longer part of the core business of the group's Automotive
Communication segment. The latter had been restructured as part of the
group's focusing strategy to concentrate exclusively on OEM supply for
automobile and lorry manufacturers.

Preliminary 2011 result

As previously announced, the company's reorientation measures will make
themselves felt in its 2011 annual financial statements. Adjusted for the
sale of the companies including the disposal of Funkwerk Avionics,
consolidated sales of the continued operations based on preliminary
calculations amount to around EUR 164m (2010 adjusted: EUR 168m). The
adjusted operating result, which was further affected by significant
preliminary development and investment costs, totals around EUR -3.5m to
range as expected in the negative single-digit millions (2010: EUR -1.7m).
The operating EBITDA is estimated at around EUR 4.5m (2010: EUR 5.4m). The
extensive reorientation measures also led to restructuring and impairment
costs relating to intangible assets totalling around EUR 10m. Accordingly,
earnings before interest, taxes and the positive transaction effects are
expected to add up to around EUR -13.5m (2010: EUR -14.9m). Through
consistent restructuring and the related expenses, Funkwerk has set the
course for the future and predicts growth no later than from 2013.

The final 2011 annual financial statements will be published on 29 March
2012.

For further information please contact:

Funkwerk AG
Jörg Reichenbach
Investor Relations
Phone: 08091 / 52 126
Fax: : 08091 / 52 221
reichenbach@funkwerk.com

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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: 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

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