Half-Year Profits Down at Beru

Germany’s Beru Group have posted sales revenue of 230.4 million euros in the first half of 2008, a 2.77 per cent growth on the corresponding period of 2007. The main sources of revenue, the company reports, were the Aftermarket segment and the Electronics and Sensors division. Profit from ordinary activities (EBIT) reduced 35.2 per cent due to one-time special items and amounted to 15.8 million euros. Excluding the special items, adjusted EBIT amounted to 23.1 million euros, equivalent to an adjusted margin of 10.0 per cent. Beru’s profit of 12.3 million euros during the period was also lower than in the first half of 2007, when profits of 18.5 million euros were achieved.

The company’s Electronics and Sensors division, responsible for the development of Beru’s TPMS, increased its revenue by 8.6 per cent to 83.0 million euros in the first half of the year. The company says that its TSS tyre pressure monitoring system was the division’s growth driver; its revenue rose by 16.6 per cent to 40.0 million euros.

Beru says it will continue to work intensively on optimising its processes and structures and on improving its productivity. Since the start of its “efficiency-enhancing” program in December 2007, 130 jobs have been cut worldwide. The Group has ceased production at its site in Mexico and will soon close a production facility in Italy. In addition, effective August 1, 2008, Beru has sold its 49 per cent equity interest in the Dutch joint venture Impco-Beru Technologies B.V.

“In order to maintain our competitiveness in the long term, we have to increase our efforts to reduce costs and improve productivity,” emphasised CEO Dr. Thomas Waldhier. “In parallel, we will continue to strengthen our innovative skills.” The Executive Board expects 2009 to be a year of consolidation. Slight growth should be achieved once again as of 2010.