MUNICH, Germany Passive components supplier Epcos AG (Munich, Germany) reports a sales hike of 10 percent year-over-year in his first quarter. The company saw high demand in particular in its ceramic component business which sells to the automotive industry in the first place.
During the first quarter (November through December), revenue rose 10 percent to 367 million (about $543 million). Due to high demand from the automotive industry, sales for ceramic components such as piezo actuators for fuel injection systems and sensor systems rose 17 percent to 130 million.
The business with capacitors and inductors grew 10 percent to 134 million. According to Epcos, demand was particularly high from industry electronics and, again, from the automotive industry.
In its surface wave component business, sales grew only slightly amidst high price pressure by 1 percent to 103 million. While demand from mobile phone vendors was high, demand from customers in multimedia applications business declined.
Operating profit came in at 28.4 million, 36 percent higher than a year ago. After tax, profit more than tripled to 19 million.
For the second quarter, the company expects sales at the same level as in the first quarter. While the company believes demand from mobile handset and consumer electronics industry will decline, it anticipates that rising demand from automotive and industrial customers as well as from distributors will more or less compensate this decline.
For the entire business year, despite a somewhat deteriorating business climate the management expects sales to rise in the mid-single-digit percent range.