BERU AG: First Quarter Sales Revenues at Prior-Year Level.Release of an Announcement According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Article 37 WpHG [German Securities Trading securities trading, financial activity involving transactions of property such as stocks, bonds, commodities, and currency (see securities). Although the trading of stocks and bonds dates back several centuries in many Western nations, the development of the Act] LUDWIGSBURG, Germany -- BERU Aktiengesellschaft, Ludwigsburg, posted total sales revenues of 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. 116.8 million for the first quarter of the 2007 financial year, nearly equaling the sales revenues of the strong prior-year period despite more difficult market conditions (Q1 2006: EUR 117.4 million). Earnings before interest and taxes In financial and business accounting, earnings before interest and taxes (EBIT) is a measure of a firm's profitability that excludes interest and income tax expenses.[1] EBIT = Operating Revenue – Operating Expenses + Non-operating Income (EBIT EBIT See: Earnings Before Interest and Taxes EBIT See earnings before interest and taxes (EBIT). ) reached EUR 14.8 million (EUR 17.3 million), equivalent to an operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: of 12.6%. Weak aftermarket Aftermarket See: Secondary market. aftermarket See secondary market. business due to weather conditions In an increasingly difficult market environment, pressure on prices and margins rose in the first quarter, combined with high raw-material and energy prices. The strong euro also led to reduced competitiveness. At the same time, sales revenues in the high-margin Aftermarket segment decreased by nearly 6% to EUR 30.9 million in the first quarter, due to the unusually mild winter weather (EUR 32.8 million). Sales revenues in the Original Equipment segment increased by 0.8% to EUR 77.8 million (EUR 77.2 million). In the General Industry segment, which comprises the business with manufacturers of oil and gas burners as well as industrial electronics, BERU achieved revenue growth of 9.3% to EUR 8.1 million in the first quarter (EUR 7.4 million). Growth in Ignition ignition, apparatus for igniting a combustible mixture. The German engineer Nikolaus A. Otto, in his first gas engine, used flame ignition; another method was heating a metal tube to incandescence. Technology and Electronics and Sensor Technology The Ignition Technology division's sales revenues increased by 12.5% from EUR 30.5 million to EUR 34.3 million. This was primarily a result of higher unit sales unit sales Sales measured in terms of physical units rather than dollars. Unit sales data are often used by financial analysts when evaluating the health of a company. of ignition coils in the Original Equipment segment. The Electronics and Sensor Technology division developed positively: First-quarter sales revenues of EUR 38.8 million represent growth of 16.6% over the prior-year period. The growth driver for this division was the TSS See ITU. tire-pressure monitoring system. As expected, BERU's revenues from PTC (PTC, Needham, MA, www.ptc.com) Long a world leader in mechanical computer-aided design, manufacturing and engineering software, PTC, through acquisitions and reorganization, has transformed itself into a leading provider of Internet-based B2B solutions for discrete manufacturers. auxiliary auxiliary In grammar, a verb that is subordinate to the main lexical verb in a clause. Auxiliaries can convey distinctions of tense, aspect, mood, person, and number. heating systems decreased, although unit sales rose. This was the result of a more cost-effective and inexpensive product solution. Growth in the Electronics and Sensor Technology division also led to a shift in the production and sales mix sales mix See product mix. towards electronic products, which have a significantly higher material share than the products of the other two divisions. The revenues posted by the Diesel Cold-Start Technology division decreased from EUR 53.6 million to EUR 43.6 million. This was due to the slower than planned ramp-up of an ISS ISS See Institutional Shareholder Services (ISS). (instant-start system) order in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , as well as the weaker Aftermarket business due to the mild winter and the increasing pressure on prices in the market for these products. Varying picture of regional revenue trends In regional terms, the BERU Group's sales revenues in the domestic market of Germany increased by 13.5% to EUR 39.8 million (EUR 35.1 million). In Europe excluding Germany, sales revenues decreased to EUR 50.4 million (EUR 57.3 million). BERU also posted lower sales revenues in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. : EUR 9.5 million compared with EUR 12.9 million in the first quarter of 2006. The strongest regional growth was achieved in Asia, where sales revenues rose by 29.1% to EUR 12.5 million (EUR 9.7 million). In the other international markets, BERU achieved sales revenues of EUR 4.5 million (EUR 2.4 million). The proportion of revenues generated outside the domestic market was 65.9%. Ongoing high liquidity The Group's cash and cash equivalents and marketable securities Marketable Securities Very liquid securities that can be converted into cash quickly at a reasonable price. Notes: Marketable securities are very liquid as they tend to have maturities less than one year, and the rate at which these securities can be bought or sold has increased to EUR 104.9 million at the end of the first quarter of 2007 (end of Q1 2006: EUR 75.8 million). BERU's net financial position increased by 38.5% to EUR 104.7 million (EUR 75.6 million). BERU invested 6.1% of total sales revenues or EUR 7.1 million in the expansion of its production facilities in Germany and abroad in the first quarter (Q1 2006: EUR 8.7 million). As of March 31, 2007, the Group employed a total workforce of 2,580 persons (March 31, 2006: 2,609). BERU maintains guidance for 2007 Despite the weaker first quarter because of the mild winter, the Executive Board of BERU AG maintains its forecasts. Sales revenues are expected to increased by a low single-digit percentage and earnings are likely to remain fairly flat in 2007 and 2008. As of 2009, new orders and the ramp-up of new products should lead to stronger growth once again. BERU results for the first quarter of 2007 (January 1 - March 31, 2007) on the basis of preliminary unaudited figures
EUR million > > Q1
Q1 2006
> >
Sales revenues > > 116.8
117.4
Earnings before interest and taxes (EBIT) > > 14.8
17.3
Total investment > > 7.1
8.7
Net financial position > > 104.7
75.6
> >
> >
Revenues by sales region > >
Germany > > 39.8
35.1
Rest of Europe > > 50.4
57.3
North America > > 9.5
12.9
Asia > > 12.5
9.7
Rest of the world > > 4.5
2.4
> >
> >
Revenues by sales segment > >
Original Equipment > > 77.8
77.2
Aftermarket > > 30.9
32.8
General Industry > > 8.1
7.4
> >
> >
Revenues by division > >
Diesel Cold-Start Technology > > 43.6
53.6
Ignition Technology > > 34.3
30.5
Electronics and Sensor Technology > > 38.8
33.3
> >
> >
Number of employees > > 2,580
2,609
> >
* on the basis of preliminary unaudited figures > >
Language: English
Issuer: BERU AG
Morikestr. 155
71636 Ludwigsburg Deutschland
www: www.beru.de
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