MUNICH, Germany Automotive and medical chip vendor Elmos AG (Dortmund, Germany) reports sales and earnings improvements in the first quarter. The results are in line with excpectations; the company reiterated its guidance under the condition that the U.S. dollar maintains its current value.
During the first quarter, the company achieved revenues of 44.2 million (about $69 million), 7.2 up against the same quarter last year. Gross profit improved 15.5 percent to 18.9 million while the operating profit was multiplied by the factor 9 against the first quarter 2007. The reason for the disproportionate rise was that during that quarter in the previous year the company had to book one-time effects connected to the ramp-up of a new production line.
The company reaffirmed its earnings forecast. It expects an EBIT increase of 12 to 14 percent for the entire financial year 2008. Sales are expected to climb between 7 and 9 percent. However, a further decline of the U.S. dollar would affect the company's growth, warned Elmos CEO Anton Mindl. "With our sales and earnings figures we have come up to our expectations for the first quarter," he said. "We managed to reach our targets despite the weak dollar and the threat of recession in the United States."
Nevertheless, Elmos' U.S. subsidiary has contributed to the positive figures after the company had exchanged the entire management a year ago. According to Elmos, the measures have laid the basis for continued improvements.
The manufacturing cooperation with Korea's MagnaChip will only contribute to the results in the medium term.