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ELMOS Semiconductor AG (OJ:ELG) Corporate news announcement processed and transmitted by Hugin AS. The issuer is solely responsible for the content of this announcement. ---------------------------------------------------------------------- --------------
Improvement of earnings quality expected compared to previous year
Dortmund: According to first calculations ELMOS Semiconductor AG (FSE: ELG) will achieve sales in the third quarter 2008 below its own expectations. Due to lack of impulses from incoming orders ELMOS does not anticipate any significant increase in sales in the fourth quarter 2008 either. The reason is the weak automotive economic situation. The reduced production and sales of new vehicles at first leads to reduced orders and order cancellations at ELMOS.
"We cannot exclude ourselves from the influences of the current economic situation especially in the automotive sector. Our customers have postponed or cancelled their orders at short-term notice", says Dr. Anton Mindl, Chief Executive Officer of ELMOS Semiconductor AG. "The lower volumes apply to all sectors in the automotive segment."
Sales in 2008 are predicted roughly on the same level as 2007 (2007: 176 million Euro). The earnings quality will improve in comparison to the previous year (EBIT margin 2007: 8.6%). The operative improvements of the past months, in particular at the production sites and the U.S. subsidiaries show positive effects. Due to the existing economic risks one can assume that the EBIT margin will be below the originally expected range of 12% to 14%.
The aim of a positive Free Cash Flow remains unchanged.
Against the background of strongly altered market conditions ELMOS has already introduced first measures on the cost and invest scope.
In the mid term, ELMOS continues to expect a positive business development. The content of electronics in vehicles will gradually increase, e.g. due to higher environment and safety requirements. ELMOS will participate disproportionately high in this development in particular due to newly won customer relations in Asia. In addition, ELMOS has made good progress by expanding into the industrial and consumer electronics market. This will provide future growth contributions.
On October 15, 2008 at 10:00 a.m. (CEST), ELMOS will conduct a phone conference (in English) for analysts and investors to discuss this release (Dial-in number: +49 (0)30 868 71 790). The phone conference will later be downloadable from the company website. The results and report for the third quarter 2008 are anticipated to be available on November 5, 2008 in German and English on www.elmos.de.
ELMOS Semiconductor AG is a developer and manufacturer of system solutions on semiconductor basis. For more than 20 years, roughly 90% of sales have been generated with chips for automotive electronics.
ELMOS Semiconductor AG Heinrich-Hertz-Strasse 1 Dortmund Deutschland
WKN: 567710; ISIN: DE0005677108; Index: Prime All Share, CDAX, HDAX, MIDCAP, TECH All Share, GEX; Listed: Prime Standard in Frankfurter Wertpapierbörse, Freiverkehr in Börse Düsseldorf, Freiverkehr in Börse Berlin, Freiverkehr in Hanseatische Wertpapierbörse zu Hamburg, Freiverkehr in Niedersächsische Börse zu Hannover, Freiverkehr in Börse Stuttgart, Geregelter Markt in Frankfurter Wertpapierbörse, Freiverkehr in Bayerische Börse München;
