Group generates positive net income and positive cash flow
In the first quarter of 2010, CFC Industriebeteiligungen AG (ISIN: DE000A0LBKW6), Dortmund, has achieved the operative turnaround. After three quarters of significant losses within the group, the company has generated an EBITDA of EUR 0.7 million in the first quarter of 2010. By comparison: In fiscal year 2009, the group generated a negative EBITDA of EUR 23.6 million (first quarter 2009: EUR 0.3 million). The group’s net income in the first quarter of 2010 was with EUR 48 thousand also positive. In the previous year a loss of EUR 2.5 million had been recorded in the first quarter, respectively, a loss of roughly EUR 33.3 million in fiscal year 2009.
The cash flow from operating activities was with EUR 2.8 million significantly positive in the first quarter of 2010, compared to EUR -10.4 million in the same period of the previous year and roughly EUR -19.2 million in fiscal year 2009.
The positive earnings and cash flow figures validate the effectiveness of the measures of CFC Industriebeteiligungen AG that have been implemented in 2009. The company has completed its efforts to focus on its core segments Electronics and Home & Living, made the necessary adjustments in its portfolio and has focused on development and investment in existing portfolio companies. As a result of the adjustments in the portfolio in 2009, group sales decreased to EUR 18.7 million in the first quarter of 2010. With reference to the remaining portfolio companies, sales increased by roughly 12.7 percent compared to the same period of the previous year. Cash and cash equivalents for the group increased significantly from EUR 3.6 million (as per December 31st 2009) to EUR 6.0 million (as per March 31st 2010). The equity ratio of the group continued to equal roughly 25 percent.
With first quarter sales of EUR 8.8 million and an EBITDA of EUR 1.9 million, Elcon has generated the best quarter since its acquisition in 2007. An improvement over to the already good results of 2009 is expected also for full fiscal year 2010. In the first quarter of 2010, Letron generated sales of EUR 2.2 million and the EBITDA has been negative so far in the amount of EUR 0.4 million. For fiscal year 2010, a positive operative result and a positive cash flow from operating activities are expected, especially as a result of the already visible progress in the intensification of sales and the acquisition of new customers. In the first three months of fiscal year 2010, Berndes generated sales of EUR 8.5 million and a negative EBITDA of EUR 0.6 million. Even though Berndes’ results are lower than expected, substantial improvements are planned in the next quarters. In order to realize essential potentials on short notice, CFC will allocate a substantial share of its human resources to this portfolio company.
The development of the group in the first quarter of 2010 is an essential step in order to achieve the group’s target of a positive operating result for fiscal year 2010.
The accounts for the first quarter are available for download at the company website (http://www.cfc.eu.com) under Investor Relations/Financial Reports.
CFC Industriebeteiligungen AG
Tel: + 49 (0) 231 222 40 500