Semperit AG Holding Revenue and Earnings Growth Q3/2011

Wien, (PresseBox) - .
- Revenue up 20.6% to EUR 626.2 million
- Earnings after tax up 18.7% to EUR 40.7 million
- EBIT up 6.1 % to EUR 64.9 million
- Course set for future growth with capital investment projects

The publicly traded Semperit Group with headquarters in Vienna saw rising sales and profits in the first nine months of 2011. Sales for the Austrian Group with its two sectors Medical and Industrial rose 20.6 percent to EUR 626.2 million in the first three quarters. Higher prices accounted for 13.4 percentage points of this increase, with increased raw material prices being passed on to customers after a time delay and 7.2 percentage points were provided by volume growth. This resulted primarily from volume increases in surgical gloves as well as sales increases in the Semperflex and Sempertrans segments.

Earnings before interest, tax, depreciation and amortization (EBITDA) grew 4.5 percent to EUR 86.6 million, and operating profit (EBIT) increased 6.1 percent to EUR 64.9 million. The increase in operating profit came from a very positive performance in Semperflex and from a turnaround in the Sempertrans segment. Semperform was slightly ahead of its operating profit in comparison to last year. The profit decrease at Sempermed is due to higher raw material costs and start-up costs for its new plant in Surat Thani, Thailand.

Together with an improved financial result and a lower tax rate, the operating profit increased by 18.7 percent to EUR 40.7 million (earnings after tax). The equity ratio was 57.2 percent at September 30, 2011, which is clearly above average for the industry. Earnings per share rose 18.7 percent to EUR 1.98.

"The first nine months of 2011 were mainly influenced by volatile raw material prices and most recently by first signs of weakness in the economy. By pursuing a strategy of profitbased growth and active raw material management, the Semperit Group has performed well in this difficult environment," explains Thomas Fahnemann, Chief Executive Officer.

CAPACITY EXPANSION ON TRACK

Net liquidity, which stood at just under EUR 80 million at September 30, 2011, is the basis for realizing the significant capacity increases that are planned over the next few years. The Semperit Group has initiated several capital investment projects in the recent months.

Following the launch of the new Siam Sempermed production facility in Surat Thani in April 2011, a third Thai production location is now to be established in Trang. From 2013, it is expected to have the capacity to produce 3 billion units of examination and protective gloves and has been designed for 4.5 billion units.

Semperit's medium-term strategic goal is to manufacture 23 billion units of examination gloves per year. Currently it produces more than eleven billion pieces. Capital investments up to a total of EUR 35 million have been approved in the Medical sector.

Additionally, about EUR 10 million will be invested in capacity expansion in the Industrial sector: the strategically important growth segment Semperflex, which produces hydraulic and industrial hoses as well as rubber sheeting, will expand production capacity in the Czech Republic, Thailand and China. Asia will see an increase of some 15 percent by the second half of 2012, while in the Czech Republic it will be some 20 percent. Semperform's existing handrail plant in China will also be expanded.

OUTLOOK

With a healthy order book in all segments of the Semperit Group, satisfactory capacity utilization is also expected in the fourth quarter of 2011. Nevertheless, first capacity adjustments have already been made and at certain locations production shifts have been reduced.

For the fourth quarter of 2011, the Semperit Group anticipates a marked increase in revenue year-over-year. However, in view of the seasonal characteristics of the year-end period and the maintenance work at certain European plants, it is currently assumed that the gratifying sales figures seen in the third quarter will not be repeated in the final quarter of 2011.

A price policy focused on profitability, combined with group wide productivity and efficiency improvement should continue to contribute to the achievement of satisfactory results.

GLOBALLY ACTIVE

As one of the leading companies in the international rubber and synthetics industry, the Semperit Group has 21 production plants and numerous sales offices in Europe, Asia and America. At September 30, 2011, the Group employs a staff of 8,480 worldwide, 710 of them in Austria.

The report on the 1st - 3rd quarter 2011 has been published and is ready for download at www.semperit.at.

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