SIMONA in Q3 2012: Sales revenue up on second quarter
Earnings performance stable but not fully satisfactory
The global business environment in which SIMONA operates continues to be dominated by a general lack of confidence within the processing indus-try and a concomitant reduction in investment spending. Against this back-drop, sales volumes relating to sheets made of PE, PP and fluoroplastics, with a particular focus on chemical tank and equipment engineering as well as the solar energy industry, remain below target. Gains made within the area of PE pipes, which are used primarily within the water utilities indus-try, provided forward momentum for the Pipes and Fittings product cate-gory.
Although earnings were stable, they failed to reach fully satisfactory levels after the very strong performance in the previous year. Commodity prices fell slightly at the beginning of the third quarter. However, the decline was only temporary, with prices now having returned to levels beyond those recorded in the first half of 2012. Overall, the elevated and volatile raw material prices continue to exert downward pressure on gross profit mar-gins. Earnings before taxes (EBT) for the first nine months of 2012 totalled €10.6 million (prev. year: €16.3 million), or 4.7 per cent of sales (prev. year: 6.7 per cent). EBIT amounted to €10.0 million (prev. year: €16.2 million), or 4.4 per cent of sales (prev. year: 6.7 per cent).
There were no significant changes to the company's financial position or cash flows in the first nine months of 2012. The Group saw a further in-crease in liquidity compared to 31 December 2011 (+€3.5 million), with the figure rising to a solid €59.9 million.
The target of Group revenue in excess of €300 million and an EBIT margin of 5 per cent for the 2012 financial year as a whole will only be achievable if the global economy puts in a particularly strong performance in the fourth quarter.
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 applica-tions 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.