SIMONA in Q3 2011: Slowdown in revenue growth
Good earnings performance despite high cost of materials
Within the area of semi-finished products, extruded and pressed sheets made of polypropylene achieved the highest level of growth. Business expanded at a less pronounced rate within the area of PVC sheets. In the piping systems division, fittings made of PE generated significant revenue growth, whereas revenue from PE pipes declined.
Commodity prices remained very high in the third quarter, although there were signs of a slight downward trend. In spite of the fact that the high cost of materials remained almost unchanged, the Group managed to increase EBIT to €5.5 million (Q3 2010: €1.7 million). The EBIT margin stood at 7.0 per cent. Profit before tax totalled €5.5 million in the third quarter of 2011 (Q3 2010: €1.5 million).
There were no significant changes to the company's financial position or cash flows in the first nine months of 2011.
Given the noticeable signs of global economic cooling, the SIMONA Group anticipates that the general business environment will become more challenging in the fourth quarter. In their Autumn Report, the country's leading economic research institutes forecast a contraction in economic output in Germany within the fourth quarter. Despite the more challenging economic climate in the second half, the Group's targets for the 2011 financial year as a whole, set at €290 million in sales revenue and €15 million in profit before tax, are considered attainable and may possibly be exceeded.
SIMONA AG is a manufacturer of thermoplastic products with production facilities and sales offices around the globe. The company's product portfolio includes semifinished 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).