Epcos Q3: Earnings structure significantly improved

New orders totaling EUR 357 million again reached the level of the same period a year ago and were only slightly below (minus 2%) the good figure recorded in the previous quarter. At EUR 364 million, sales again achieved double-digit year-on-year growth (plus 10%), as in the first two quarters of the current fiscal year. Sales remained stable on the same high level sequentially, after strong growth in the previous quarter. This was achieved despite the fact that the quarter under review had five fewer accounting days (8%) than the previous one. Earnings before interest and tax (EBIT) continued their positive development, rising to EUR 21 million – a significant year-on-year increase and a slight sequential rise. It is worth noting that all business segments made a significant positive contribution. The earnings structure across the individual business segments today is much more balanced than it was a year ago. After the first nine months of fiscal 2007, sales are up 11 percent year on year to EUR 1.06 billion. In the same period, Group EBIT has nearly doubled to EUR 58 million compared to the first nine months of fiscal 2006. Customers in the industrial electronics, automotive electronics and telecommunications industries ordered more in Q3 2007 than in the previous quarter. The increase in orders from these industries was more or less offset by a decline in orders from consumer electronics customers. However, it should be remembered that the good order volume from the previous quarter also includes larger longer term orders placed by some customers in this industry. Order volumes from distributors were also down in Q3 following a significant rise in the previous quarter. The regional spread of new orders reflects no uniform pattern. The order intake from Asia, for example, increased in all industries served except consumer electronics. In Europe without Germany and in the NAFTA region, orders declined overall. New orders from Germany remained unchanged sequentially. The overall stable sales development in Q3 2007 revealed only minor percentage variations in the industries served. Higher sales of products to automotive electronics customers contrasted with lower sales to distributors and telecommunications customers. Sales of components to industrial and consumer electronics customers remained unchanged sequentially. Regionally, sales remained more or less stable in Germany and the other European countries but declined slightly in Asia and the NAFTA region.