Corporate | 17 March 2003 09:59

Funkwerk AG english

Funkwerk reaches new records in sales and profit Corporate-news announcement sent by DGAP. The sender is solely responsible for the contents of this announcement. ——————————————————————————– Final business figures for 2002 exceed forecast: Funkwerk reaches new records in sales and profit Sales increase of 61 % to EUR 108.7 million – EBIT rise by 35 % to EUR 8.9 mil- lion – Fourth quarter the best in company history – Strong start into the new financial year – Positive outlook for 2003 Kölleda/Frankfurt, 17 March 2003. In the 2002 financial year, Funkwerk AG achieved new record figures in sales and profit. According to the final figures now available, the market leader in communication systems for transport and logistics managed to increase its sales in the preceding financial year by 61 % to record EUR 108,7 million (2001: EUR 67.4 million). Its operating result (EBIT) also grew stronger than expected, increasing by 35 % to EUR 8.9 million (2001: EUR 6.6 million). Chairman of the Board, Dr. Hans Grundner, at the press conference on financial statements in Frankfurt: “Funkwerk is continuing its course towards growth undeterred and at full speed.” Since going public in November 2000, Funkwerk has been able to almost treble its sales and more than double its profit. According to Dr. Grundner, “It was the fourth quarter in particular, a rather bad quarter for the economy as a whole, that turned out to be the best in the history of Funkwerk, recording sales of EUR 38.8 million (2001: EUR 25 million) and EBIT of EUR 4.3 million”. The company, seated in the Thurigian Kölleda, benefited in particular from the increasing demand on the part of European railway companies for mobile radio terminals (GSM-R) and the completion of several large-scale projects in the Professional Mobile Radio Systems segment. Since Funkwerk started the serial production of GSM-R terminals in mid-2002, the company has been working off its largest order volume in Funkwerk history to date – the equipment of power units of Deutsche Bahn AG with this new, digital communication system. Thanks to this, Funkwerk achieved a sales increase in the overall year 2002 of 136.4 % to EUR 13 million (2001: EUR 5.5 million) in the mobile radio systems for transport companies product group (GSM- R terminals). Says Grundner, “By 2004 inclusive, we anticipate to see further sales of at least EUR 40 million from the orders on hand in this product segment.” Not included in it were said to be the initial deliveries to the French state railway, SNCF, which were to begin in 2003. For the overall year 2002, the Professional Mobile Radio Systems segment recorded an increase in sales of 44 % to EUR 46.8 million (previous year: EUR 32.5 million). Funkwerk successful as original supplier of the automobile industry In 2002, Funkwerk managed to gain further ground as a supplier of the automo- bile industry. Thus, vehicles from Audi, BMW, and Daimler Chrysler are now equipped with mobile communication equipment as a standard and even VW, Toyota, Skoda and smart are continuously supplied by Funkwerk. Communication and telematics systems as original equipment are gaining in importance in the automobile industry. The result for Funkwerk are growing market potentials. Despite the declining economic activity in the automobile sector, Funkwerk was able to slightly increase its sales in the Commercial Mobile Radio Systems segment as against the previous year. On the whole, the company realised EUR 28.4 million (previous year: EUR 27.2 million) in this area. The main performer here was the patented COMPENSER amplifier technology developed by Funkwerk, designed such as to provide an interference-free re- ception of radio signals in vehicles. Business with the COMPENSER increased by 11.7 % to EUR 18.1 million (2001: EUR 16.2 million). In its first fully consolidated financial year, the Private Networks business segment, set up in October 2001, contributed to the sales revenue of Funkwerk with a volume of EUR 33.5 million or 31 per cent. With revenues of EUR 15.7 million, DECT systems including wireless LAN solutions formed the biggest product group here. Funkwerk was able to further increase its market leadership in the area of personal security systems in Germany. Operating result above plan – stable dividend In regard to its operating result (EBIT), Funkwerk also managed to exceed its projections (EUR 8.8) in 2002, recording a figure of EUR 8.9 million. As against the previous year (EUR 6.6 million), this meant an increase of 35 %. Says Grundner, “This is all the more remarkable since we experienced particular burdens due to the development expenditure for new products, the integration of the acquisitions, and the start-up costs for the serial production of GSM-R terminals, all of which will not affect sales and profit positively until the years to come.” The group profits for the year rose by 12.7 % to EUR 6.0 million (previous year: EUR 5.4 million). The result per share increased accordingly from EUR 0.75 to EUR 0.84. The consolidated unappropriated retained earnings rose from EUR 9.6 million to EUR 10.4 million, with EUR 4.7 million to be transferred to retained earnings. The Managing Board and the Supervisory Board of Funkwerk AG will propose to the shareholders’ meeting an unchanged dividend of EUR 0.20 per share. “This means, we would give our shareholders an appropriate interest in the success of our company while at the same time increasing the financial power of Funkwerk AG,” says Grundner. According to Dr. Grundner, the liquidity of Funkwerk AG continues to be good and sufficient to be able to finance the further growth of the company by itself. “It is true that the liquid funds reduced from EUR 35.4 million to EUR 20.8 million as against the previous year. However, the reason for this, in essence, is the increased resource requirements in every business segment in order to place new serial products on the market,” explains Grundner. The orders on hand of EUR 94.6 as at the end of the year 2002 (previous year: EUR 103.2 million) made Dr. Grundner feel very confident in regard to the current financial year. 64 % of the orders on hand, or EUR 60.9 million (previous year: EUR 56.3 million), alone are attributable to Professional Mobile Radio Systems, which means that this segment will continue to be an engine of growth even in 2003. Strong start into 2003 – Specific growth forecast As maintained by the Chairman of the Board, following the best quarter in com- pany history to date, the positive business trend of Funkwerk is continuing in the first quarter of 2003. “We have started strong in the new financial year and will probably more than reach our growth targets in the first quarter.” On the solid basis of a high volume of orders on hand and “very satisfactory” initiations of business, Funkwerk once again anticipates aboveaverage growth despite the unfavourable overall economic situation in Germany. Says Grundner, “We have set our target figures for sales in 2003 at around EUR 126 million, with EBIT of EUR 11 million.” The complete 2002 annual report of Funkwerk AG is available on the Internet at http://www.funkwerk.com . Further information is available from: Funkwerk AG, Im Funkwerk 5, D-99625 Kölleda; Katrin Schwarz, Investor Relations, Telephone: 0 36 35/6 00 -3 35, Fax: 0 36 35/6 00 -3 99; E-Mail: schwarz@funkwerk.com. end of message, (c)DGAP 17.03.2003 ——————————————————————————– WKN: 575314; ISIN: DE0005753149; Index: NEMAX 50 Listed: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Bremen, Düsseldorf, Hamburg, Hannover, München und Stuttgart 170959 Mär 03