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SIMONA with positive performance in first quarter
Interim Announcement within the First Half of 2010
Procurement costs were impacted by commodity price trends, as a result of which profit margins came under significant pressure. Benefiting from its ongoing costreduction programme, the Group managed to achieve earnings before taxes of €2.6 million in the first quarter of 2010.
There were no significant changes to the company's financial position or cash flows in the first three months of 2010, with liquidity remaining solid at all times.
SIMONA anticipates that business will remain challenging in 2010, at least within the first half of the year. The world economy is on a path to slow recovery. However, this positive performance is being driven to a certain extent by basis effects following the severe downturn. Overall, the propensity to invest is expected to remain weak as long as excess production capacities persist. SIMONA will continue to use the instrument of shorttime work on a flexible basis, depending on the company's order intake.
The Group believes that it will take at least until the second half before there is a tangible and sustainable recovery. Despite this situation, the SIMONA Group will be looking to grow revenue to a level of €250 million.
Against the background of the anticipated challenges of the first half and the added risks associated with commodity prices, SIMONA will be targeting positive earnings before taxes.
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