CURRENT NEWSVienna, 23 May 2007 PRESS RELEASE NO. 4/2007 SEMPERIT: CONTINUED GROWTH IN FIRST QUARTER 2007
Vienna, May 23, 2007 – The industrial group of Semperit AG Holding announced a further improvement in sales and earnings for the first quarter of 2007. In the first three months of the 2007 financial year, consolidated sales increased by 5.9% to EUR 149.9 million. EBIT climbed by 18.6% to EUR 12.8 million, whereas the earnings before tax (EBT) improved even more significantly, rising 25.9% to EUR 14.0 million. Consolidated net profit for the period increased 19.6%, to reach a level of EUR 10.1 million. Semperit’s solid performance can be attributed to the sustained upswing in the global economy. In contrast, the situation on the world raw materials markets remained tense in the first quarter of 2007. The prices for natural rubber and latex have risen strongly since the beginning of the year. The further appreciation of the euro as well as the Thai baht against the US dollar continued to have an unfavourable impact on the business activities of the Semperit Group in the first quarter. For the most part, appropriate hedging measures helped to prevent currency exchange losses. Nevertheless, the resulting negative effects on the company’s competitiveness vis-à-vis competitors from other countries impaired Semperit’s business in the USA. SALES GROWTH IN ALL DIVISIONS All four divisions contributed to these gratifying business results. In the first quarter of 2007, the Sempermed division reported only a 2.6% increase in sales, to EUR 55.2 million compared to the same period of the previous year, as a consequence of the high share of business settled in US dollars. However, earnings climbed significantly in comparison to the first quarter of 2006. The business with surgical gloves remained vigorous. Sempermed generated continued growth in the examination glove market in Europe, whereas first quarter sales in the USA declined. A fire at the Chinese manufacturing facility for non-latex examination gloves interfered with production operations during the first quarter. Sales of the Semperflex division rose 6.3% in the first quarter of 2007, to EUR 40.8 million. Growth was once again powered by the business with industrial hoses and elastomer sheeting. Semperflex generated higher sales and revenue in the hydraulic hoses segment in Europe and Asia. However, business development in the USA was below expectations. The Semperform division increased its sales by 10.1%, to EUR 26.1 million. Once again, the Deggendorf plant in Germany and the new handrail factory in China served as the growth drivers. Due to the extremely high demand for construction profiles made in Deggendorf, work has already started to raise production capacity at the factory. The Sempertrans division reported an increase in sales totalling 8.2%, to EUR 27.8 million, accompanied by a further improvement in earnings. The positive development was driven by all production facilities, which profited from the lively demand in the conveyor belt market. POSITIVE OUTLOOK FOR 2007 In light of the ongoing favourable economic forecasts, it is anticipated that the good business development of the company will continue throughout the 2007 financial year. In addition to the uncertainty about future prices for several raw materials, particularly latex and chloroprene, the currency exchange rates of the US dollar and Thai baht are further risk factors. Semperit’s management expects a further increase in sales and earnings in the 2007 financial year, based on the company’s continually optimising production processes, sustaining its tight cost management, exploiting the positive market situation, and further internationalising its business operations.
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Semperit Aktiengesellschaft Holding | Modecenterstraße 22 | A-1031 Wien
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Semperit Aktiengesellschaft Holding | Modecenterstraße 22 | A-1031 Wien
Tel: +43 1 79777 0 | Fax: +43 1 79777 600
E-Mail: office(at)semperit.at | E-Mail: investors(at)semperit.at