Ad-hoc | 24 November 2006 07:50

Surteco AG: SURTECO AG continues on target

Ad hoc announcement transmitted by DGAP – a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. —————————————————————————— * Sales revenues and earnings up again * New direction in the SBU Plastics will continue to strengthen the earnings situation Buttenwiesen-Pfaffenhofen, November 24, 2006 – SURTECO AG is one of the world’s leading suppliers to the construction and furnishing industry with its Strategic Business Units (SBU) Plastics and Paper. The Group continues on target after nine months of the current business year 2006, after consolidated sales again increased in the third quarter by comparison with the equivalent year-earlier period. On 30 September, the surface specialist reported total sales amounting to 304.5 million euros and was hence three percent above the figures for the previous year, in line with the forecast. SURTECO AG continues to benefit from its strong position in export markets. The sales of 195.4 million generated there represented a rise of four percent overall and that takes the proportion of foreign sales from 63 to 64 % as a result. This compensated for domestic demand that continued to move at a rather modest level, settling at the level of the previous year amounting to 109.1 million euros after three quarters. SURTECO AG has bundled the companies of the Döllken Group in the SBU Plastics, and this business unit in particular benefited from the past nine months of buoyant foreign business, which rose by eight percent to 111.6 million euros. At 174.4 million euros, total sales for this business unit, which is primarily generated with edging tapes, continued at four percent above the comparable figures for the previous year despite stagnating domestic business. SURTECO AG is expecting an improvement in the earnings situation resulting from realignment of the range of Döllken & Praktikus GmbH. The product portfolio of this leading supplier to the Do-It-Yourself (DIY) retail trade is currently being consistently streamlined and will in future be based primarily on innovative in-house products. Contrary to the SBU Plastics, the SBU Paper – which manufactures flat foils for the furnishing sector – even reported a slight upsurge in domestic demand. Total sales increased by one percent to 130.1 million euros, generating 46.3 million euros of these sales within Germany. However, SURTECO AG does not attribute this satisfying upswing of three percent to the impending increase in value added tax, but to a very competitive product range that meets the aggressive pricing policy of competitors head-on. The operating result also documents the overall positive development of SURTECO AG at 30 September, with an increase of three percent at 53.2 million euros. The EBITDA margin amounted to 17.5 percent and hence remained at the level of the previous year. After nine months, the EBIT has risen significantly and was also above the level for the equivalent figures for 2005 at 39.6 million euros (+ two percent). As announced, the Group has continued to reduce its long-term financial debts (by seven percent), and the gearing ratio fell significantly from 103 percent to 84 percent. As a result of the improved result, the equity ratio continued to increase from 40.2 percent (start of year) to 42.4 percent. Following a four percent rise in sales, SURTECO AG generated consolidated net income of 21.8 million euros on sales of 396.4 million euros in the fiscal year 2005 (+ 20 percent). Recent months demonstrate that the Group will easily be able to fulfil the forecasts derived from these figures for 2006 – moderate sales growth and a slightly above-average earnings performance. (c)DGAP 24.11.2006 ————————————————————————— Language: English Issuer: SURTECO AKTIENGESELLSCHAFT Johan-Viktor-Bausch-Str. 2 86647 Buttenwiesen-Pfaffenhofen Deutschland Phone: +49 (0)8274 99 88-0 Fax: +49 (0)8274 99 88-5 05 E-mail: g.schneller@surteco.com WWW: www.surteco.com ISIN: DE0005176903 WKN: 517 690 Indices: Listed: Amtlicher Markt in Frankfurt (Prime Standard), München; Freiverkehr in Berlin-Bremen, Düsseldorf, Stuttgart End of News DGAP News-Service —————————————————————————