DGAP-News: Funkwerk overall on target in Q1
(firmenpresse) - DGAP-News: Funkwerk AG / Key word(s): Quarter Results
Funkwerk overall on target in Q1
13.05.2011 / 14:30
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Funkwerk overall on target in Q1
- Revenues of EUR 43.9m down on previous year (EUR 47.4m) due to product
portfolio adjustments
- At EUR -2.9m, earnings at prior-year level despite increased advance
performances
- Automotive Communication concluded framework contracts worth around EUR
100m
- New products set to launch
Kölleda, 13 May 2010. Funkwerk AG (ISIN DE0005753149) completed the first
quarter of 2011 with sales down on the previous year, but overall on
target. Based on the quarterly report published today, the specialist in
professional information and communication technology for transport,
industry and security generated revenues of EUR 43.9m (2010: EUR 47.4m). At
EUR -2.9m, earnings (before interest and taxes), in contrast, exceeded the
projections even despite considerable advance performances for new product
developments and projects at prior-year level. The first quarter in
Funkwerk's yearly cycle is typically the weakest in terms of sales. For the
further course of the year, and more specifically in the latter half,
Funkwerk therefore expects a rising trend in both sales and earnings, along
with a positive turnaround.
'The sales trend in the first quarter of 2011 most notably shows the effect
of adjustments to our product portfolio, which meant a number of low-margin
products were discontinued in all business segments. Because of efficiency
increases, however, Funkwerk was able to fully compensate the decline in
sales in the operating result,' the management wrote in its quarterly
report.
Business at Funkwerk in the first quarter of 2011 was also defined by the
restrained investment propensity of international railway operators. 'The
consolidation of public budgets is quite obviously taking precedence over
investments. The acceleration in demand noticeable at the end of the
previous financial year failed to continue in the first quarter. On the
whole, sales and incoming business were marginally less than projected, but
earnings proved better than predicted,' it says in the report.
New framework contracts with automobile industry worth over EUR 100m
On the whole, Funkwerk reported new order bookings of EUR 46.2m in the
first three months. Based on sales, this results in a book-to-bill ratio of
1.05, an indication of increasing revenues in the coming quarters. At EUR
104.2m on the cutoff date at the end of March, the volume of orders ranged
above the target figure.
This figure does not yet include new, multiyear framework contracts with
leading automobile and lorry manufacturers worth almost EUR 100m in total,
which the company's Automotive Communication segment was able to conclude
in the first quarter; call-off points and the quantities to be delivered
cannot as yet be specified in concrete terms. From 2013, these contracts
will, however, lead to significant growth rates in this segment.
In the further course of the year, Funkwerk will focus on standardising and
consolidating central functions. The aim here is, in a next step, to
increase productivity and further reduce the company's structure costs.
Further growth potential through strategic cooperation and acquisitions
In Automotive Communication, securing new framework contracts and other
specific business initiations present Funkwerk with considerable growth
opportunities. The use of electronic interlocking systems also opens up a
new market for cost-effective systems in the railway sector. In the medium
term, Funkwerk expects its proprietary development Alister to gain a
significant market share here. Funkwerk also follows the strategy of
further expanding business involving components and standardised solutions
and increasing the real net output ratio. The company will also need to
standardise its key products and market these more widely through new
partnerships. To this end and in order to push ahead with the
internationalisation of its business, the company expects to conclude
strategic cooperation agreements before the end of the year.
On the whole, the Executive Board sees opportunities again for Funkwerk to
continue its organic growth after releasing new products and solutions
which are expected to show effect in 2011 and 2012 and an improving cost
structure. 'Over and above that, we are pursuing strategic options to focus
on promising business activities,' the management writes in its forecast.
The full Q1 report for the 2011 financial year of Funkwerk AG is available
on the Internet at www.funkwerk.com and on the website of Deutsche Börse.
For further information contact
Funkwerk AG
Im Funkwerk 5
D-99625 Kölleda/Thüringen
Jörg Reichenbach
Investor Relations
Telefon: 0 36 35/6 00 -3 46
Fax: 0 3635/6 00 -5 07
reichenbach(at)funkwerk.com
Sebastian Brunner
communications-+consulting
Tel.: 0175/5604673
fsbrunner(at)aol.com
End of Corporate News
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13.05.2011 Dissemination of a Corporate News, transmitted by DGAP - a
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Language: English
Company: Funkwerk AG
Im Funkwerk 5
99625 Kölleda
Deutschland
Phone: +49 (0)3635 600 0
Fax: +49 (0)3635 600 507
E-mail: info(at)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 News DGAP News-Service
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124643 13.05.2011
Datum: 13.05.2011 - 14:30 Uhr
Sprache: Deutsch
News-ID 34100
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