3.2. Group earnings
| EUR million | Q1 2008 | | Q4 2008 | Q1 2009 |
| EBIT | +28.4 | | +23.1 | –19.2 |
| Net income | +19.0 | | +8.8 | –29.8 |
| Earnings per share (in EUR, undiluted) | +0.29 | | +0.14 | –0.44 |
In Q1 2009, Group EBIT was negative at minus EUR 19.2 million.
Net income was minus EUR 29.8 million. Earnings per share were minus EUR 0.44.
Net cash flow was minus EUR 61 million. Net cash used in operating activities came to
EUR 36 million. In addition to the loss, an increase in net current assets also had a negative impact. This increase was attributable essentially to a decline in liabilities and an increase in inventories of finished products due to the weak demand. Net cash used in investing activities was EUR 25 million.
4. Ongoing adjustment of resource planning and input factors
In view of the extremely difficult economic conditions and the unpredictable nature of future demand, EPCOS is constantly reviewing its resource planning and input factors, and aligning them to changing circumstances.
Thus, EPCOS is implementing a series of personnel measures in order to adjust production capacity to the significant drop in customers’ demand for components. Employees are, for example, using up vacation entitlements carried over from the previous year, running down overtime hours and being put on short time. In Q1 2009, it also became unavoidable to reduce the number of people working for EPCOS worldwide by around 4,100. About half of these people were EPCOS’ own employees. The other half were temporary staff and the staff of subcontractors.
From a present perspective, capital spending of EUR 110 million this fiscal year will be sharply down on that of the previous year (EUR 155 million). However, to keep EPCOS competitive,
EUR 75 million (2008: EUR 81 million) will be invested in research and development.
5. Outlook
Economic researchers expect 2009 to bring sustained and severe burdens for the world economy. In light of this situation and of the very weak order intake, EPCOS expects sales to decline to about EUR 260 million in Q2 2009, which will likewise negatively impact earnings.
About EPCOS
EPCOS AG is a leading manufacturer of electronic components, modules and systems headquartered in Munich. With its broad portfolio EPCOS offers a comprehensive range of products from a single source and focuses on fast-growing and technologically demanding markets, in particular in the areas of information and communication technology, automotive electronics, industrial electronics and consumer electronics. The EPCOS Group has design and manufacturing locations and sales offices in Europe, Asia, and in North and South America.
Electronic components are found in every electrical and electronic product and are indispensable for their flawless operation. Products from EPCOS store electrical energy, filter frequencies, and protect against overvoltage and overcurrent.
In fiscal 2008 (October 1, 2007, to September 30, 2008), EPCOS posted sales of EUR 1.48 billion. At the end of the fiscal year, the company employed about 21,200 people worldwide.
N.B. All financial data has been compiled to IFRS and is not audited.
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.
