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Press release Box-ID: 532559

SIMONA AG Teichweg 16 55606 Kirn, Germany http://www.simona.de
Contact Mr Eric Schönel +49 6752 14997
Company logo of SIMONA AG

SIMONA Group records slowdown in growth due to weak investment dynamics

Revenue down 8.2 per cent in first half - EBIT margin 4.3 per cent - Business expected to remain slack in second half

(PresseBox) (Kirn, )
The SIMONA Group continued to feel the adverse effects of sluggish investment spending in the second quarter as economic conditions remained volatile. In the first half of 2012, the plastics processing company generated sales revenue of €149.0 million, down €13.3 million or 8.2 per cent on the figure posted for the extremely buoyant first six months in 2011. In the second quarter, sales revenue declined by 10.5 per cent to €76.4 million (Q2 2011: €85.4 million).

"The SIMONA Group has been affected to an increasing extent by the progressive economic downturn since as early as the second half of 2011. Around the globe, companies' fundamental confidence has plunged as a result of the European sovereign debt crisis. Lower confidence translates into a lower propensity to invest; the impact on our business is particularly strong," says Wolfgang Moyses, CEO of SIMONA AG.

EBIT fell by 39.2 per cent to €6.5 million (HY1 2011: €10.6 million). The EBIT margin was 4.3 per cent (HY1 2011: 6.5 per cent). The year-on-year decline was attributable primarily to the continued rise in material costs up to May 2012 as a result of high commodity prices as well as a contraction in overall business.

Total assets increased slightly to €262.8 million compared with 31 December 2011. Equity declined marginally as a result of the dividend payment completed in June 2012. In 2011, the dividend had been paid in the second half of the year. At 66 per cent, the equity ratio remained high.

SIMONA is bracing itself for another period of sluggish business in the second half of the year. The lack of momentum in terms of investment spending has resulted in a decline in contracts and more intense competition to secure new orders. "Overall, we anticipate that demand will stabilise at the current level, provided that markets are not hit by any events of extreme proportions. We remain committed to our 2012 targets of annual sales revenue in excess of €300 million for the SIMONA Group as a whole and an EBIT margin of 5 per cent. However, they will be difficult to meet," says Moyses.

SIMONA AG

SIMONA AG is a manufacturer of thermoplastic products with production facilities and sales offices around the globe. The company's product portfolio includes semi-finished products (sheets, profiles, welding rods), pipes and fittings as well as finished parts. SIMONA employs more than 1,200 people worldwide. In total, 35,000 products for a diverse range of applications are manufactured at facilities in Germany and abroad. Annual production exceeds 100,000 tonnes. SIMONA AG is a stock corporation listed in the General Standard. The company's registered office is in Kirn, Rhineland-Palatinate (Germany).

In the medium term, SIMONA aims to generate Group revenue of €500 million and emerge as one of the world's leading suppliers of semi-finished thermoplastics for safety- and eco-specific applications.

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The publisher indicated in each case is solely responsible for the press releases above, the event or job offer displayed, and the image and sound material used (see company info when clicking on image/message title or company info right column). As a rule, the publisher is also the author of the press releases and the attached image, sound and information material. The use of information published here is generally free of charge for personal information and editorial processing. Please clarify any copyright issues with the stated publisher before further use. In case of publication, please send a specimen copy to service@pressebox.de.