Ad-hoc | 19 March 2004 07:24

SURTECO BUCKS SECTOR ECONOMIC TREND AND WEAK DOLLAR – FORECASTS WERE EXCEEDED

Ad-hoc-announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– Buttenwiesen-Pfaffenhofen, 19 March 2004 – Despite the lacklustre economic conditions prevailing in the sector for the third year running, and foreign business burdened by extremely unfavourable currency conditions, SURTECO AG concluded the past fiscal year with better results than expected. The company is regarded as the leading global supplier of surface technologies based on specialist papers and plastics for technical applications. While forecasts were corrected upwards in September, the actual results for the 4th quarter were even better than expected. The balance sheet for 2003 highlights this success in the results for ordinary activities before restructuring expenses, which are reported as Euro 29.7 million instead of the Euro 26 million forecast. The Group has thereby only slightly undershot the result for 2002 (Euro 30 million). SURTECO AG also succeeded in reducing the financial debts significantly by Euro 35 million to Euro 146 million; these debts are mainly related to acquisitions. SURTECO AG is structured in two strategic business units, SBU Paper and SBU Plastics. The Group generated consolidated sales amounting to Euro 355 million in 2003, which was 3 % below the amount for the previous year (Euro 367.6 million). However, after adjustment for currency losses, sales would only be Euro 0.5 million below the value for the previous year. The share of foreign sales in total sales remains relatively high at 60 % and underpins this perspective. EBIT for 2003 fell from Euro 42.7 to Euro 37.2. Net consolidated income for the year at Euro 14.9 million was Euro 2.7 million below the figure for the previous year. Shareholders of SURTECO AG should also participate in the net income of Euro 14.8 million. The Board of Management will propose a payout of a dividend amounting to Euro 0.70 per share at the Annual General Meeting (Munich, 17 June). SURTECO AG employed 1,937 employees at the end of the year and is assuming that its market scenarios will not change substantially in 2004. However, the company is optimistic that the current fiscal year will be concluded with figures that slightly exceed the figures for the previous year. The Group continues to anticipate stimuli abroad where opportunities for growth are perceived and these are also being actively promoted. For example, the 75% stake in Arbe s.r.l. near Venice acquired in December 2003 will significantly strengthen the sales structures of SURTECO AG in Italy. The prospects for the Chinese market are outstanding and the decision taken to set up a dedicated production operation for edging and surface products is beginning to take on concrete shape. The facility is due to be opened in mid-2005. end of ad-hoc-announcement (c)DGAP 19.03.2004 ——————————————————————————– WKN: 517 690; ISIN: DE0005176903; Index: Listed: Amtlicher Markt in Frankfurt (Prime Standard) und München; Freiverkehr in Berlin-Bremen, Düsseldorf und Stuttgart 190724 Mär 04