Electronics Production | May 03, 2007

Epcos improves in sales and earning

New orders worth EUR 366 million reached again the high level of the previous quarter (minus 0.5 percent) and were 5 percent up on the same period a year ago Austrian company Epcos reports.
As a result, earnings before interest and tax (EBIT) of plus EUR 20 million surpassed the figures both for the previous quarter and for the same period a year ago.

Customers in the telecommunications and consumer electronics industries and distributors contributed double-digit growth in new orders in Q2 2007. Orders placed by automotive electronics customers were also up sequentially. Positive developments in these industries thus offset the pronounced drop in orders from industrial electronics customers. But, it should be remembered that the comparatively large volume of orders placed by this industry in the previous quarter also included substantial longer term orders.

The regional spread of new orders remained more or less stable. Higher volumes of orders from foreign European countries and Asia stood against a lower volume in Germany. Orders from the NAFTA region remained unchanged sequentially.

Almost all industries served by EPCOS contributed to sales growth in Q2 2007. Growth was strongest – double-digit percentage growth – in sales of products for automotive electronics applications. This rise was again due to the increase in electronic content in vehicles and to substantially stronger demand for piezo actuators. Sales to distributors and customers in the industrial and consumer electronics industries likewise contributed to the sales growth. Sales of products for the information and telecommunication technology industry remained stable overall.

Ceramic Components posted the strongest sequential sales growth. All product groups in this segment contributed double-digit growth to overall sales of EUR 133 million.

At Capacitors and Inductors too, all product groups played a part in the overall positive business development that drove sales up to EUR 131 million. In particular, aluminum electrolytic capacitors and inductors for the industrial and automotive electronics industries contributed to this improvement.

Sales totaling EUR 101 million at Surface Acoustic Wave (SAW) Components were slightly down sequentially. The principal reason was a seasonal dip in demand for SAW filters both for multimedia products and for mobile phones. However, the bulk of this decline was offset by new roll outs of radio frequency modules for high-end, third-generation mobile phones.

The year-on-year increase in new orders recorded in Q2 2007 was essentially due to a more than 40 percent rise in the volume of orders from the automotive electronics industry. Significantly greater demand for piezo actuators was the main reason of this good demand. Orders placed by mobile phone manufacturers and by distributors were likewise up, compensating for a lower volume of orders from the other industries served.

Regionally, the substantial gain in order volumes from the automotive electronics industry drove a more than 20 percent rise in new orders in Germany and an increase of more than 10 percent in the other European countries. In Asia and the NAFTA region new orders declined due to the unusually high order levels from the mobile communications segment in the same period last year as well as due to currency translation effects.


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