Corporate | 14 August 2015 08:00
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SURTECO SE / Key word(s): Half Year Results
Press Release
SURTECO posts sales increase and one-off negative impacts on earnings
Buttenwiesen-Pfaffenhofen, 14 August 2015 – SURTECO SE – one of the world’s leading manufacturers of decorative surface materials – succeeded in improving consolidated sales within the projected framework by 4 % to EUR 327.2 million (1st half year 2014: EUR 315.3 million) during the first half of 2015. By contrast, earnings in the months of April to June were impacted negatively by enhanced costs arising from integration processes including additional construction measures related to reorganization and a temporary surplus of personnel. These costs were incurred by relocation of decorative printing to the Buttenwiesen site. The operating result (EBITDA) at EUR 34.6 million was therefore below the comparable value of EUR 39.6 million for the equivalent year-earlier period. The same applies to the pre-tax result, which achieved a value of EUR 16.8 million (1st half year 2014: EUR 17.8 million) after the first six months. Since higher costs are also anticipated in the second half of the year for relocation and increasing raw materials prices, SURTECO has already introduced countermeasures, but it has adjusted its earnings outlook for the entire year. SURTECO is maintaining its forecast unchanged for a slight increase in sales compared with the previous year (2014: EUR 618.5 million). The pre-tax profit is likely to be in the range below EUR 30 million. The value of EUR 22.3 million posted in 2014 will therefore be significantly exceeded. “In view of robust demand, we are expecting consolidated sales slightly above the level for the previous year. Although the relocation of printing machines is currently running according to plan, the process is incurring higher costs. We have already introduced countermeasures in order to compensate for this development and the increasing prices of raw materials. Since operating business is continuing to be satisfactory, we are confident of being able to achieve sustainable and profitable growth in the future,” commented Dr. Herbert Müller, who has been the new Chairman of the Board of Management of SURTECO SE since 1 July 2015. Positive currency effects and slight growth in local currency for the two Strategic Business Units (SBU) contributed to the sales growth: While the SBU Plastics increased by 8 % to EUR 123.8 million, the SBU Paper posted an increase of one percent to EUR 203.3 million. After deduction of tax, consolidated net profit in the first six months amounted to EUR 11.6 million (1st half year 2014: EUR 12.8 million) or EUR 0.75 (1st half year 2014: EUR 0.83) calculated as earnings per share. Free cash flow more than doubled to EUR 23.4 million SURTECO has a very robust balance sheet quality in view of an equity ratio of 49.0 % (31 December 2014: 50.4 %) and gearing (net financial debt/ equity) of 43 % (31 December 2014: 45 %). Net financial debt came down from EUR 145.8 million to EUR 140.6 million compared with year-end 2014. Thanks to the successful disposal of property, plant and equipment, free cash flow was more than doubled to EUR 23.4 million after EUR 11.1 million in the previous year. Sales outlook for 2015 confirmed, pre-tax earnings target adjusted to less than EUR 30 million At segment and Group level, the company is continuing to assume a slight increase in sales revenues for the business year 2015 by comparison with the previous year. On account of the one-off effects described, SURTECO has correspondingly adjusted its outlook for earnings over the entire year. The pre-tax profit is therefore not likely to be marginally above the year-earlier value after adjustment for restructuring expenses (EUR 9.4 million) in line with expectations. Rather, it is projected to be in the range below EUR 30 million. The value of EUR 22.3 million actually posted before adjustment in 2014 will therefore continue to be significantly exceeded. You can find the Report for the first half year 2015 and other information about SURTECO SE on the Internet at www.surteco.com.
Important indicators of SURTECO SE
(1) Based on an number of shares amounting to 15,505,731 (2) Net debt / Equity
Cautionary note regarding forward-looking statements This press release contains statements of future forecasts or expectations and other forward-looking statements and involves known and unknown risks and uncertainties. There is therefore no guarantee for the statements and expectations expressed herein. The actual results and developments may differ substantially. The company does not intend to – and assumes no obligation – to update any forward looking statements contained herein or to adapt such information to future results or developments. Contact:
2015-08-14 Dissemination of a Corporate News, transmitted by DGAP – a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de |
| Language: | English | |
| Company: | SURTECO SE | |
| Johan-Viktor-Bausch-Str. 2 | ||
| 86647 Buttenwiesen-Pfaffenhofen | ||
| Germany | ||
| Phone: | +49 (0)8274 99 88-0 | |
| Fax: | +49 (0)8274 99 88-5 05 | |
| E-mail: | ir@surteco.com | |
| Internet: | www.surteco.com | |
| ISIN: | DE0005176903 | |
| WKN: | 517 690 | |
| Listed: | Regulated Market in Frankfurt (Prime Standard), Munich; Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Stuttgart | |
| End of News | DGAP News-Service |
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| 386065 2015-08-14 |