EPCOS Group (including discontinued operations)
EBIT for the EPCOS Group as a whole was EUR 2 million (first half of 2005: minus EUR 26 million, including special charges totaling EUR 17 million).
Total after-tax earnings came to plus EUR 1 million (first half of 2005: minus EUR 49 million), including a loss of EUR 8 million posted for tantalum capacitors. The transfer of EPCOS' tantalum capacitor business to US American capacitor manufacturer KEMET was successfully completed in April. The company has thus eliminated its biggest loss-maker.
Total earnings per share for the first half of 2006 stood at plus 1 eurocent (first half of 2005: minus 75 eurocents).
In the first half of the current fiscal year, net cash flow was minus EUR 13 million (first half of 2005: minus EUR 69 million).
"The sale of our tantalum activities to KEMET is giving us a cash inflow of about EUR 70 million," says CFO Dr. Wilfried Backes, "the majority of which we received when the deal was closed in April."
Outlook (continuing operations)
Against the backdrop of the overall positive economic development, EPCOS is now more optimistic about its business outlook. For the year as a whole EPCOS expects the increase of sales in its continuing business to be at least in the high single-digit percentage range. EBIT will improve further in the second half of 2006.
About EPCOS
EPCOS AG, a manufacturer of passive electronic components headquartered in Munich, is market leader in Europe and number two worldwide. With its uniquely broad portfolio EPCOS offers a comprehensive range of products from a single source. The EPCOS Group has design, manufacturing and marketing facilities in Europe, the Americas and Asia.
Passive electronic components are found in every electrical and electronic product – from automotive and industrial electronics through information and communications to consumer electronics. Components from EPCOS store electrical energy, select frequencies, and protect against overvoltage and overcurrent.
In fiscal 2005 (October 1, 2004, to September 30, 2005), EPCOS posted sales of EUR 1.24 billion. At September 30, 2005, the company employed about 16,100 people worldwide.
N.B. All financial data has been compiled to US GAAP and is not audited except for data at September 30, 2005.
Live transmission of conference call
On May 4, 2006, the Management Board of EPCOS will inform analysts and investors of business performance in the second quarter of fiscal 2006 at a conference call starting at 12 noon, Central European Time, 6 a.m., US Eastern Standard Time. This conference can be followed live at the EPCOS corporate website (www.epcos.com/conferencecall ). A transcript of the speeches will be available for downloading after the end of the conference call.
Further dates
Results for the third quarter of fiscal 2006 will be published on August 1, 2006. Results for the fourth quarter and for fiscal 2005 as a whole will be published at the Annual Press Conference on November 16, 2006.
This document may contain forward-looking statements with respect to EPCOS’ financial condition, results of operations, business, strategy and plans. In particular, statements using the words “expects”, “anticipates” and similar expressions, and statements with regard to management goals and objectives, expected or targeted revenue and expense data, or trends in results of operations or margins are forward-looking in nature. Such statements are based on a number of assumptions that could ultimately prove inaccurate, and are subject to a number of risk factors, including changes in our customers’ industries, slower growth in significant markets, changes in our relationships with our principal shareholders, the ability to realize cost reductions and operating efficiencies without unduly disrupting business operations, currency fluctuations, unforeseen environmental obligations, and general economic and business conditions. EPCOS does not assume any obligation to update publicly any forward-looking statement, whether as a result of new information, future events or otherwise. Further information on factors which could affect the Company’s financial results is provided in documents filed with the Bundesanstalt für Finanzdienstleistungsaufsicht and the US Securities and Exchange Commission.
