Revenue and Profit increase in 2011, expansion policy to be continued

29.03.2012 (Disclosed inside information / Adhoc Release)

  • Revenue up by 18.9% to EUR 820.0 million.
  • Earnings after tax increased by 19.2% to EUR 54.1 million
  • Increase in EBIT by 0.9% to EUR 83.1million
  • Earnings per share rose from EUR 2.21 to EUR 2.63
  • Medium term outlook reflects growth strategy

Vienna, March 29, 2012 – The publicly listed Semperit Group achieved an increase in revenue of 18.9% to EUR 820.0 million in the 2011 financial year. 6 percentage points of the revenue growth was driven by an increase in volume and almost 13 percentage points were driven by price increases which were necessary due to higher raw material costs. All four business segments – Sempermed, Semperflex, Sempertrans and Semperform – contributed to this growth.

The EBIT trend was influenced by extreme raw material price increases, which were partially and only with a delay passed on to customers. Furthermore EBIT was influenced by an increase in material costs of a total of 25.1%. The price of natural rubber in comparison with the previous year’s average showed an increase of 30%. At the same time, increases in personnel costs and sundry operational expenses were significantly below the increase in revenue. Operating profit (EBIT) increased by 0.9% to EUR 83.1 million thanks to these efforts; the EBIT margin fell from 11.9% to 10.1% remaining in double digit territory. With largely unchanged depreciation charges, a marked improvement in financial result and reduced income taxes, earnings after tax for the year EUR 54.1 million – 19.2% more than in the previous year. As the number of ordinary shares outstanding remained unchanged, earnings per share resulted in EUR 2.63, up from EUR 2.21 in the previous year.

All signs point to continued growth in the future. “We have positioned the organisation, employees and finances for expansion” explained Semperit CEO Thomas Fahnemann. The equity ratio improved by more than 60% and liquidity stands at around EUR 98 million. Around EUR 45 million will be invested by 2013 to expand capacity. “To this end, we are actively looking for value-enhancing acquisitions", stressed Fahnemann.

At the Annual General Meeting the board will propose a dividend of EUR 0.80, implying a dividend payout ratio of 30.4%. “We are aligning ourselves with the level of comparable Austrian industrial companies. At the same time, we are creating additional flexibility to implement our growth strategy, while maintaining a solid capital structure”, explained CFO Johannes Schmidt-Schultes, who has acted as CFO since April 2011.

Sempermed: Doubling of volume by 2015

The Sempermed segment increased revenue by 17.4% to EUR 371.5 million in 2011. Due to the unfavourable raw material price trend, the strong price pressure as well as the start-up costs for the new plant in Thailand, the EBIT fell by 26.8%. Sales volumes amounted to 12.3 billion examination gloves and 127 million surgical gloves. Examination gloves are made in the plant in Thailand and the surgical gloves are made in the main factory in Wimpassing, Lower Austria. In addition to the current three manufacturing plants in Thailand, a new one was put into operation in 2011 which will be further expanded in 2012. A fifth plant is at an advanced stage of planning. Total sales should almost double to approximately 23 billion examination gloves by 2015, the global market share for this business unit should increase from 8% to approximately 12%.

Semperflex: Revenue increase of 28.5%

The Semperflex segment was particularly dynamic in 2011 with growth of 28.5% to EUR 186.9 million. The record volume was primarily due to the strong economy in the first half of the year. Operating profit (EBIT) improved by 3.3% to EUR 25.0 million in comparison to last year. Hydraulic and industrial hoses as well as elastomer and wear protection plates are manufactured. Semperflex wants to assume a worldwide leading market position through a strengthened presence in Asia and South America and leading position in Europe for industrial hoses by 2015. The current expansion programme will provide capacity increases in Thailand, China and the Czech Republic.

Sempertrans: Turnaround achieved

Sempertrans, one of the world’s largest suppliers of technical conveyor belts increased revenue by 24.5% in 2011 to EUR 147.0 million. The primary driver for this increase was strong demand from the mining sector. Attractive large orders did not just come from the core regions of Central and Eastern Europe, but increased orders were also generated from South America, Asia and North Africa. After a break-even year in 2010, Sempertrans recorded an operating profit (EBIT) of EUR 11.3 million. The increasing boom in energy and raw material markets should prove beneficial in the coming years.

Semperform: Focus on profitable niches

Semperform, specialist in moulded and extrusion products made of rubber and plastic, increased revenue by 4.7% to EUR 114.6 million in 2011. Supported by exceptional factors, operating profit (EBIT) improved by 18.9% to EUR 18.9 million. Going forward, the market position in building profiles in Europe which has been achieved will be defended and the focus will remain on profitable market niches. The hand rail business unit will develop new, innovative product types, specially developed for the fast growing Chinese market.

Outlook for 2012 and medium-term goals

For 2012, Semperit Group foresees continuing volume growth. Given the restricted strategic visibility, primarily dominated by raw material price trends, and the difficulty in forecasting the macro-economic conditions, an informed outlook regarding revenue and profit trends for 2012 is not possible at the current time. Semperit Group continues to follow its medium term growth targets; on average in the years up to and including 2015, double digit sales growth should be achieved while maintaining the current profitability levels.

Global operations

As one of the leading companies in the international rubber and plastic industry, Semperit Group is supported by 21 production plants and numerous sales and marketing offices in Europe, Asia and America. The Group employs an average of 7,833 people globally, with 702 of those employed in Austria.

The annual financial statements for 2011 are available at: http://www.semperit.at/en/investor-relations/publications/annual-reports/

Queries:

Semperit AG Holding

Mag. Martina Büchele
Head of Group Communications
Tel.: +43 676 8715 8621
Email: martina.buechele@semperitgroup.com


Mag. Clemens Taschée
Head of Group Accounting
Tel.: +43 (1) 79 777-230
Email: clemens.taschee@semperitgroup.com

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