BERU: Growth Target of 5% in Short Financial Year; Sales Revenues up by 9.6% after 6 Months.LUDWIGSBURG, Germany -- BERU Aktiengesellschaft (FWB (Fixed Wireless Broadband) See fixed wireless. :BZL), Ludwigsburg, anticipates revenue growth of around 5% for its short financial year of nine months ending on December 31, 2005, compared to the same period last year. Operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. is expected to increase at a similar rate. The changed financial year as approved by the Annual Shareholders' Meeting shareholders' meeting n. a meeting, usually annual, of all shareholders of a corporation (although in large corporations only a small percentage attend) to elect the Board of Directors and hear reports on the company's business situation. on September 21, 2005 was recorded in the Commercial Registry on November 15. The Executive Board has therefore adapted its planning to the new nine-month period. Due to the lack of the traditionally strong fourth quarter (January 1 - March 31), the existing 12-month planning, which targeted growth in revenues and earnings at a high single-digit rate, has to be adjusted to the short 2005 financial year of nine months. In the first six months of the short financial year (April 1 - September 30, 2005), BERU increased its total sales revenues by 9.6% to EUR EUR In currencies, this is the abbreviation for the Euro. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 197.0 million (April 1 - September 30, 2004: EUR 179.8 million). Operating profit (EBIT EBIT See: Earnings Before Interest and Taxes EBIT See earnings before interest and taxes (EBIT). ) for the 6-month period increased by 26.1% to EUR 28.0 million (EUR 22.2 million). The EBIT margin (the ratio of EBIT to sales revenues) was 14.2% (12.3%). The fact that EBIT increased faster than sales revenues is because, unlike in the second quarter of the prior year, there were no exceptional operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. in the period under review. BERU's earnings before taxes were EUR 5.6 million higher than in the prior-year period, rising by 23.5% from EUR 23.8 million to EUR 29.4 million. Net income for the six-month period rose by 30.5% to EUR 18.4 million (EUR 14.1 million). Earnings per share amounted to EUR 1.84 compared with EUR 1.41 in the prior-year period. The Group achieved a return on sales Return on sales A measurement of operational efficiency equalingnet pre-tax profits divided by net sales expressed as a percentage. return on sales The portion of each dollar of sales that a firm is able to turn into income. after taxes of 9.3% (7.8%). The Group expects only a moderate revival of demand for automobiles in the third quarter of the short financial year (October 1 - December 31, 2005). The market and competitive environment is still subject to intensifying in·ten·si·fy v. in·ten·si·fied, in·ten·si·fy·ing, in·ten·si·fies v.tr. 1. To make intense or more intense: pressure on prices and margins. BERU anticipates an EBIT margin for the nine-month period of between 13% and 14%. The Six-Month Report of BERU AG for the period of April 1 to September 30, 2005 can be accessed at www.beru.com The Executive Board BERU AG Morikestr. 155 71636 Ludwigsburg Deutschland ISIN: DE0005072102 (SDAX) WKN: 507210 Listed: Amtlicher Markt in Frankfurt (Prime Standard) und Stuttgart; Freiverkehr in Berlin-Bremen, Dusseldorf, Hamburg und Munchen |
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