FUNKWERK : Ad hoc: Funkwerk AG: Funkwerk reports sales increase and earnings growth in the second quarter

Funkwerk AG / Quarterly report / Funkwerk reports sales increase and 
earnings growth in the second
quarter
  
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Kölleda, 12 August 2008. Despite significant strain due to the
restructuring of its business unit Enterprise Communication and
against the backdrop of an overall weak economic trend, Funkwerk AG
(ISIN DE0005753149) achieved a positive operating profit  (EBIT) of
1.1 mill. Euro (previous year: 1.5 mill. Euro) in the second quarter
due to tight cost management. At mid-year EBIT was 1.2 mill. Euro
(2007: 1.7 mill. Euro), with a group profit of 0.5 mill. Euros at the
end of June, compared with 1.2 mill. Euro in the previous year. This
translates at mid-year into earnings per share of 0.06 Euro (2007:
0.15 Euro).

Since large corporations and government institutions constitute the
majority of the current business, Funkwerk usually receives more
orders and thus higher sales and more earnings in the second half of
the year. By the end of 2008 and beyond, Funkwerk anticipates a
positive trend in the business area Traffic & Control Communication.
In the second half of the year, against the background of a declining
economic trend in the automotive sector, a new sales approach in the
aftermarket for hands-free equipment will be of crucial importance
for the business development in the Automobile Communication
division. The reorientation of the Enterprise Communication division
will be completed by the end of the year. The economic trend,
however, looks likely to remain weak in this consumer-oriented
sector. With establishing the new business area Security
Communication out of two existing product areas, which is now
independently managed strategically speaking, Funkwerk is well
prepared to become a major player as systems provider in the growing
market of security technology.

The positive result in the second quarter was dominated by the strong
performance of the Traffic & Control Communication division. Revenues
went up by 18.2 percent to 40.9 mill. Euros (previous year: 34.6
mill. Euro), thus compensating for the decline in sales to 14.4 mill.
Euro (previous year: 20.9 mill. Euro) at Enterprise Communication.
With 14.5 mill. Euro (previous year: 14.3 mill. Euro), the sales
trend in the Automotive Communication division remained stable. With
69.8 mill. Euro, total sales remained at the previous year's level
(69.7 mill. Euro) in the period from April until the end of June
2008, despite market demand for price reductions. This resulted in
gains of 3.8 percent to 131.4 mill. Euros (2007: 126.6 mill. Euro) at
mid-year.

In the first half of the year the operating cash flow for the
Funkwerk Group significantly improved from -8.7 mill. Euro to +0.6
mill. Euro, by reducing receivables and inventories, with further
improvement expected for the second half of the year.

With 67 mill. Euro (previous year: 68 mill. Euro), operating result
remained stable in the second quarter. In addition, there are several
successful projects for rail infrastructure in Eastern Europe and
security systems for site protection in the pipeline.

For further information contact:

Funkwerk AG
Im Funkwerk 5
99625 Kölleda/Thuringia
Germany
Jörg Reichenbach
Investor Relations
Telephone: [phone]
Fax: [phone]
[e-mail]


 
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Funkwerk AG
Im Funkwerk 5 Kölleda Germany

WKN: 575314; ISIN: 
DE0005753149; Index: HDAX, MIDCAP, CDAX, Prime All Share, TECH All 
Share;
Listed: Geregelter Markt in Frankfurter Wertpapierbörse, Prime 
Standard in Frankfurter Wertpapierbörse, 
Freiverkehr in Börse Berlin, Freiverkehr in Bayerische Börse München, 

Freiverkehr in Börse Düsseldorf, Freiverkehr in Börse Stuttgart, 

Freiverkehr in Hanseatische Wertpapierbörse zu Hamburg, Freiverkehr 
in Niedersächsische Börse zu Hannover;
http://hugin.info/132370/R/1242551/267234.pdf


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