EANS-Adhoc: Semperit AG Holding
Satisfactory Business Development in Q1-3 2014
despite Difficult Economic Environment (with photo)
-------------------------------------------------------------------------------- ad-hoc disclosure transmitted by euro adhoc with the aim of a Europe-wide distribution. The issuer is solely responsible for the content of this announcement. -------------------------------------------------------------------------------- Financial Figures/Balance Sheet/quarterly report 18.11.2014 - Revenue up 2.0% to EUR 698.3 million - Largely unchanged earnings development with respect to EBITDA and EBIT - Good order situation in spite of the weak economy - Stable financial year 2014 expected Vienna, November 18, 2014 - The publicly listed Semperit Group showed a satisfactory revenue and earnings development in the first three quarters of 2014. Revenue rose 2.0% year-on-year to EUR 698.3 million from EUR 684.4 million in the prior-year period. Both the Medical and Industrial Sectors contributed to growth based on strong sales performances and higher sales volumes. This more than compensated for the decrease in selling price levels caused by the drop in raw material prices. Double-digit growth was achieved in the Medical Sector, whereas the more cyclically-dependent Industrial Sector further increased its revenue against the backdrop of a restrained market development. For the most part, Semperit generated stable earnings in a challenging market environment. In particular, the resolute implementation of strategic raw material management, stringent cost discipline and efficiency improvements resulting from good capacity utilisation had a positive effect. In contrast, the growth-related increase in personnel and slightly increased other operating expenses negatively impacted earnings. The Group's consolidated EBITDA of EUR 101.3 million was largely stable in comparison to EUR 102.0 million achieved in the previous year. EBIT declined to EUR 66.7 million, a drop of 3.2% from the record nine-month figure of EUR 69.0 million achieved in Q1-3 2013. The EBITDA margin of 14.5% (Q1-3 2013: 14.9%) and the EBIT margin of 9.6% (Q1-3 2013: 10.1%) remained at a solid level. Semperit achieved a net result (earnings after tax) of EUR 39.6 million, which declined from the comparable figure of EUR 44.5 million in the first three quarters of 2013 due to the lower EBIT and higher financial expenses. "We succeeded in growing organically in the first nine months although we faced stiff headwinds in cyclically-dependent areas. This growth can be attributed to a very strong sales performance in all segments and regions. The order situation in the months ahead continues to be good because we are continually attracting new customers and further expanding business with our existing ones. All in all we expect a satisfactory 2014 financial year, although we have already perceived a slowdown in the global economy", says Semperit CEO Thomas Fahnemann in commenting on the current business development. Semperit generated substantial sales increases in the third quarter of 2014 in contrast to strong negative price effects related to the considerably lower raw material prices. Third-quarter revenue was up slightly to EUR 234.0 million from EUR 233.0 million in the previous year. EBITDA fell by 10.3% to EUR 32.5 million, and EBIT was down 18.8% to EUR 20.5 million. In spite of these declines, profitability remained still satisfactory, as reflected by the EBITDA margin of 13.9% and the EBIT margin of 8.8%. Semperit boasted a solid capital base at the reporting date of September 30, 2014. The equity ratio remained at a consistently high level of 49.6% compared to 48.3% as per December 31, 2013. Cash and cash equivalents amounted to EUR 163.2 million, down from EUR 182.6 million at the end of 2013. "We still have a high level of liquidity despite distributing a higher dividend and implementing an extensive investment program. We generated a cash flow from operating activities (gross cash flow) of EUR 83,4 million in the first nine months of the year, which underlines the continued cash-generating strength of our business operations", explains Semperit CFO Johannes Schmidt-Schultes. Medical Sector: Higher sales and revenue In the Medical Sector (the Sempermed segment), the intensified sales activities resulted in a considerable rise in sales volumes. Therefore, the ongoing negative price effects caused by the lower raw material prices could be offset. Demand for examination gloves was strong. Sales in the industrial and consumer goods sectors continued to develop positively. In contrast, higher energy prices in Malaysia had an adverse effect on the Medical Sector's performance. Capacity utilisation remained high at all Sempermed production plants. Revenue of the Medical Sector rose 0.9% in the first three quarters of 2014 to EUR 334.0 million. EBITDA was stable at EUR 43.9 million compared to EUR 44.1 million in the previous year. The EBITDA margin of 13.1% was also at the prior-year level (Q1-3 2013: 13.3%). Industrial Sector: Strong development in spite of economic slowdown The Industrial Sector (the Semperflex, Sempertrans and Semperform segments) showed a positive development. All three segments once again increased sales volumes due to their strong sales activities. In the Semperflex segment, sales successes enabled a very good capacity utilisation of production plants and a substantial rise in revenue and earnings. The hydraulic hose business increased again delivery shares in Europe and the USA, but the situation in Asia remains difficult. The Sempertrans segment achieved volume growth as well. However, raw material price effects led to a decline in revenue and earnings. Almost all business units in the Semperform segment generated volume increases. Revenue of the Industrial Sector climbed 3.1% in the first three quarters of 2014 to EUR 364.3 million. EBITDA was up 1.9% to EUR 72.0 million, corresponding to a largely unchanged excellent EBITDA margin of 19.8% compared to 20.0% in the prior-year period. All three segments generated double-digit EBIT margins. Outlook 2014 and multi-year targets The Semperit Group expects a largely stable order situation for the rest of 2014 and a satisfactory performance in both revenue and earnings compared to 2013. The slowdown of the global economy along with geopolitical crises has led to a restrained market and demand development in cyclically-dependent business areas. Whereas the North American market continues to develop positively, a considerable weakening of demand is perceptible in Europe. There is a lack of growth impetus throughout Asia. The Medical Sector has a growth dynamic that is largely independent from the general trend in the economy. The Sempermed segment continues to focus on improving efficiency as well as targeting new customer segments. The Semperit Group anticipates that global demand for examination and protective gloves will steadily grow. In order to take advantage of this market growth, Sempermed is expanding its production capacity at its plant in Kamunting, Malaysia. A total of about EUR 50 million will be invested in the construction of a new glove facility during the period 2014 to 2016. The order pipeline in the Industrial Sector is well filled for the coming months despite the current weak economic situation. However, a further economic slowdown would likely depress demand of some business units. Semperit is counteracting the weaker market development by intensifying its sales and marketing activities in order to gain market shares. In order to continue its long-term growth, the Semperit Group is implementing an extensive investment programme in its Industrial Sector. As a result, the group is currently expanding its manufacturing capacities for hydraulic and industrial hoses in Odry, Czech Republic, for conveyor belts at its plant in Belchatów, Poland, for handrails in Shanghai, China and for profiles in Wimpassing, Austria. These additional capacities will be available step by step in the course of 2015 and 2016. For the year 2014 the group expects to invest more than EUR 60 million (CAPEX), compared to EUR 49.7 million in 2013. Of this amount, around EUR 25 million is intended for the maintenance of existing facilities. Semperit reaffirms its previous growth targets, namely to achieve double-digit revenue growth on average in the years from 2010 to 2015 inclusive. It still aims to achieve an EBITDA margin of between 12% and 15% and an EBIT margin of between 8% and 11%. The report on the first three quarters of 2014 is available for download at: http://www.semperitgroup.com/en/ir/reports-and-presentations/interim-reports/ About Semperit The publicly listed company Semperit AG Holding is an internationally-oriented group that develops, produces, and sells in more than 100 countries highly specialised rubber and plastic products for the medical and industrial sectors: examination and surgical gloves, hydraulic and industrial hoses, conveyor belts, escalator handrails, construction profiles, cable car rings, and products for railway superstructures. The headquarters of this long-standing Austrian company, which was founded in 1824, are located in Vienna, and the global R & D centre is in Wimpassing, Lower Austria. The Semperit Group employs about 11,600 people worldwide, including close to 9,000 in Asia and more than 800 in Austria (Vienna and production site in Wimpassing, Lower Austria). The Group has 22 manufacturing facilities worldwide and numerous sales offices in Europe, Asia, and America. In 2013 the group generated sales of EUR 906 million and an EBITDA of EUR 133 million. Pictures with Announcement: ---------------------------------------------- http://resources.euroadhoc.com/us/CX8IGRJy http://resources.euroadhoc.com/us/GNbphKhs Further inquiry note: Martina Büchele Head of Group Communications Tel.: +43 676 8715 8621 martina.buechele@semperitgroup.com www.semperitgroup.com ; Stefan Marin Investor Relations Tel.: +43 676 8715 8210 stefan.marin@semperitgroup.com end of announcement euro adhoc -------------------------------------------------------------------------------- Pictures with Announcement: ---------------------------------------------- http://resources.euroadhoc.com/us/CX8IGRJy ; http://resources.euroadhoc.com/us/GNbphKhs ; issuer: Semperit AG Holding Modecenterstrasse 22 A-1030 Wien phone: +43 1 79 777-210 FAX: +43 1 79 777-602 mail: investor@semperitgroup.com WWW: www.semperitgroup.com sector: Synthetics & Plastics ISIN: AT0000785555 indexes: WBI, ATX Prime, ViDX, Prime Market, ATX Global Players stockmarkets: official market: Wien language: English
Original content of: Semperit AG Holding, transmitted by news aktuell