Quarterly Report • Nov 11, 2011
Quarterly Report
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Q3
1 January to 30 September
specialists for surface technologies
| Q3 | Q1-3 | |||||
|---|---|---|---|---|---|---|
| € 000s | 1/7/-30/9/ 2010 |
1/7/-30/9/ 2011 |
Variation in % |
1/1/-30/9/ 2010 |
1/1/-30/9/ 2011 |
Variation in % |
| Sales revenues | 100,659 | 101,334 | +1 | 291,725 | 312,919 | +7 |
| of which - Germany - Foreign |
32,745 67,914 |
33,739 67,595 |
+3 – |
96,894 194,831 |
102,652 210,267 |
+6 +8 |
| EBITDA | 16,914 | 13,266 | -22 | 48,934 | 45,032 | -8 |
| EBITDA margin in % | 16.8 | 13.1 | 16.8 | 14.4 | ||
| EBIT | 11,257 | 7,809 | -31 | 33,184 | 28,945 | -13 |
| EBIT margin in % | 11.2 | 7.7 | 11.4 | 9.2 | ||
| EBT | 8,348 | 5,978 | -28 | 26,448 | 18,530 | -30 |
| Consolidated net profit | 6,666 | 3,925 | -41 | 19,400 | 12,046 | -38 |
| Earnings per share in € | 0.60 | 0.35 | -41 | 1.75 | 1.09 | -38 |
| 30/9/2010 | 30/9/2011 | Variation in % |
31/12/2010 | 30/9/2011 | Variation in % |
|
|---|---|---|---|---|---|---|
| Net financial debt in € 000s | 121,891 | 129,110 | +6 | 123,163 | 129,110 | +5 |
| Gearing (level of debt) in % | 57 | 60 | +5 | 58 | 60 | +3 |
| Equity ratio in % | 44.0 | 45.7 | +4 | 44.3 | 45.7 | +3 |
| Number of employees | 2,034 | 2,075 | +2 | 2,003 | 2,075 | +4 |
4 5
The global economy will not be able to continue the high dynamic pace of the previous year in 2011. Although current estimates by the International Monetary Fund (IMF) indicate that growth will still achieve a level of 4.0 %, this growth will be increasingly generated by the emerging economies, while the industrial nations will lose traction. Analysis by experts projects that the gross domestic product of the emerging economies is likely to rise by 6.4 % in 2011, while the IMF is only forecasting growth of 1.6 % for the industrialized world. Europe (+1.6 %) continues to battle with the unsolved problems of the highly indebted southern European countries in the ongoing euro crisis. In the USA (+1.5 %), politicians are on the one hand subject to demands to create further stimuli to get the economy going as renewed signs of a further downward slide into recession have increased in recent weeks. On the other hand, the USA are also having to address their problems of debt and the tools of fiscal policy are having to be deployed to consolidate national budgets. Uncertainties are also being created by the high levels of fluctuation in the capital markets.
The emerging nations regard themselves as being subject to fewer economic risks. In particular, the emerging economies in Asia are continuing to grow at a fast rate. The IMF is forecasting growth of 9.5 % in 2011 for China while growth in India is projected at 7.8 %. Risks in the emerging markets arise from the fact that the growth stimuli 6 7
are partly very uneven. While growth in Latin America is very strongly dominated by internal demand, the major Asian emerging economies are significantly more dependent on exports and hence more susceptible to a further slowdown in growth in the industrial countries.
Development of the furniture and wood-based industry is the key factor for sales of SURTECO products. Despite the slowdown in growth in the German economy, sentiment in the furniture industry was good. Sector sales grew according to the associations of the German wood and furniture industries (HDH and VDM) by 7.3 % to € 8.2 billion during the first six months.
The main engine for good development was the dynamic growth in foreign business. Exports increased by more than 12 % compared with the previous year at the mid-point in the year. Most recently, domestic demand receded slightly, in keeping with the general economic situation. The main positive development over the current year so far has been demand in the sector of office furniture, and increased sales were also recorded in furniture for kitchens and living areas. A slight easing in pricing development for supplier products was also evident. The prices for wood suppliers no longer increased as sharply as was the case at the beginning of the year. Whereas prices for wood-based materials continued to increase downstream: prices increased by 12 % alone in July 2011.
Despite the restrained economic environment, the sector associations continued to remain confident for the rest of the year. HDH and VDM raised their forecast for growth in furniture sales from 2-3 % to a respectable 5 %. However, compared with the first half of the year, upward development is likely to be significantly dissipated by the year-end.
SURTECO launched the start of the year with quarterly sales growth of 20 %, although the high percentage growth rate was partly due to the restrained equivalent year-earlier quarter. Trends were already being reversed particularly in the domestic market during the second quarter so that an increase of only 3 % was attained compared with the successful equivalent quarter of the previous year. The slowdown in the growth trend continued during the third quarter of the year. In spite of tangible uncertainties in the markets, it was nevertheless possible to increase sales slightly by comparison with the third quarter of 2010. SURTECO generated sales growth in the domestic market whereas foreign business remained constant.
Earnings after three quarters were depressed by one-off effects and the continuing exceptionally high cost of materials ratio, and this meant that the figures for the previous year could not be attained.
While growth in sales had been generated abroad during the second quarter of 2011, the domestic market generated sales growth of 3 % to € 33.7 million in the third quarter. Sales abroad remained at the equivalent year-earlier level of € 67.6 million. Total sales during the months July to September increased slightly by 1 % to € 101.3 million compared with the value in the previous year.
After nine months, SURTECO had generated sales of € 312.9 million (+7 %) in a market environment that was becoming increasingly difficult. Sales in Germany grew by 6 % to € 102.6 million and foreign sales increased by 8 % to € 210.3 million. Especially in Australia (+6 %), in European foreign countries (+8 %) and in Asia (+23 %) business developed better than expected.
Sales in the Strategic Business Unit Plastics increased slightly during the third quarter so that the 60 million euro mark was again exceeded. It was almost possible to generate the value of the successful first quarter with € 60.1 million.
Sales increased by 5 % to € 180.0 million during the months from January to September. While domestic sales underwent a moderate increase of 2 % at € 56.1 million, foreign sales went up by 6 % to € 123.9 million. Positive development was posted especially for markets in Europe (without Germany) with +8 %, South America (+9 %) and Asia (+15 %).
After three quarters, the high-volume edgebanding business increased by 2 % or € 2.4 million. Business with roller shutter systems achieved the most dynamic performance with an increase in sales of 27 % to € 3.2 million.
The third quarter of the Strategic Business Unit Paper reflected the environment of restrained purchases, particularly with customers in European countries outside Germany. The domestic market has been developing very gratifyingly and this was rewarded with an increase of 5 %. Growth in Asian sales even amounted to 50 %. Quarterly sales increased by 1 % to € 41.2 million. Aggregated sales for the first three quarters amounted to € 132.9 million in the Strategic Business Unit Paper. This corresponds to an increase of 11 %. The greatest growth was generated in
Germany (+11 %), Australia (+12 %) and Asia (+45 %).
8 9
Despite the cooling of global growth, costs for raw materials continued at a very high level. The Strategic Business Unit Paper was particularly beset by the high costs for raw papers. The increasingly scarce and expensive raw material titanium dioxide is required for their manufacture. No easing of the situation is currently foreseeable and any improvement would be subject to a time-lag as a result of the long planning and production cycles.
Apart from dependence on the price of crude oil – which continues to remain at a high level – the raw material for the Strategic Business Unit Plastics is particularly affected by a shortage of the plastics component butadiene. There has also been a sustained high demand for ABS in Asia and a corresponding lack of imported Asian raw materials. There is no sign of the situation easing at present. As a result, the Group's cost of materials ratio increased by 2.1 percentage points after the first three quarters to the historic high of 46.1 %. The cost of materials went up to € 145.4 million (2010: € 132.2 million).
As a result of the positive orders booked, particularly at the beginning of the year, and the associated improvement in the utilization of production capacity, the headcount of the workforce at 2,075 employees increased by 4 % compared with the previous year (31 December 2010: 2,003 people). By comparison with 30 September 2010, the increase amounted to 41 employees or 2 %. Personnel expenses increased by € 3.2 million to € 78.0 million. However, the personnel expense ratio remained constant at 24.7 %.
High purchase prices reached an all-time high in the third quarter, and it has not yet been possible to pass on the full amount of the increase to customers. They exerted a tangible impact on the result. An additional factor were one-off effects arising from preparations made for an acquisition which were at an advanced stage. Costs amounting to € 2 million had been incurred before the preparations were broken off in September 2011.
As a result, EBITDA fell by 22 % to € 13.3 million compared with the equivalent year-earlier quarter (€ 16.9 million). This impacted negatively on earnings before tax (EBT) in the amount of € 6.0 million (previous year: € 8.3 million).
10 11
The Group generated an aggregated EBITDA in the first three quarters amounting to € 45.0 million (previous year: € 48.9 million). The EBITDA margin fell by 2.4 percentage points to 14.4 %. Since depreciation and amortization have remained virtually identical with the previous year, EBIT came down approximately to the same extent and reached a value of € 28.9 million (previous year: € 33.2 million).
Impairments on the package of shares held by SURTECO in Pfleiderer AG, Neumarkt, amounting to € 3.2 million, which became effective in the first half of the year, exerted a negative impact on earnings before tax. On 30 September 2011, the residual book value of the shareholding amounted to € 0.7 million. This resulted in an EBT amounting to € 18.5 million on 30 September 2011 (previous year: € 26.4 million). Consolidated net profit amounted to € 12.0 million (previous year: € 19.4 million). This yielded earnings per share of € 1.09 (previous year: € 1.75) based on 11,075,522 no-par-value shares.
Key influencing factors such as the reduction of liquid assets brought about by the dividend payment and the necessary impairments on the package of shares held in Pfleiderer AG led to a reduction in the balance sheet total to € 470.3 million on 30 September 2011 (31 December 2010: € 481.5 million). Inventories were increased by € 9.0 million to keep pace with sustained demand and safeguard supply capability. Working capital increased from € 77.3 million to € 91.2 million.
Financing of raw materials, planned settlements of financial debts and the dividend payment led to a reduction in liquid funds by € 18.9 million. Net financial debt was € 129.1 million (31 December 2010: € 123.2 million). Gearing therefore went up from 58 % to 60 %. By comparison with year-end 2010, the equity ratio increased by 1.4 percentage points to 45.7 %.
Although operating earnings (EBITDA) at € 45.0 million remained below the level for the previous year (€ 48.9 million) on 30 September 2011, cash flow from current business operations increased significantly to € 26.6 million (previous year: € 19.8 million). Cash flow from financial activities remained at the same level with the scheduled settlements of loans. Investments in the expansion of infrastructure and in optimization of production workflows led to higher cash flow from investment activities.
| € 000s | 1/1/ - 30/9/2010 |
1/1/ - 30/9/2011 |
|---|---|---|
| Cash flow from operating activities |
22,448 | 33,473 |
| Payments for income tax | -2,692 | -6,911 |
| Cash flow from current business operations |
19,756 | 26,562 |
| Cash outflow from investment activities (less financial investments) |
-6,571 | -14,001 |
| Free cash flow | 13,185 | 12,561 |
At Interzum in Cologne, the leading international trade fair for the suppliers to furniture production and interiors, SURTECO presented a large selection of new edgebandings based on plastics as prototypes. Intensive research and development work has matured these developments to series production. The 3D Duo-Gloss edgebanding provides an appealing finish with a dual level of gloss on one edgebanding. This particularly high-quality effect is generally applied in conjunction with solid colours and offers the benefit of highlighting a materialmix effect within a uniform colour scheme. The top layer is generally varnished in high-gloss and this is therefore coordinated with the high-gloss visual effect of the board surface. The lower area is provided with a more matt finish and corresponds with the matt-glass visual effect which is in tune with current trends and is becoming increasingly popular for applications in kitchen areas.
The innovative development of super-matt and high-gloss edgebandings based on polypropylene (PP) is also in line with the current trend. The supermatt edgebanding is characterized by a surface which is particularly impervious to finger prints and mechanical influences. The new PP premium products can also be supplied as "Fusion Edge" for joint-less processing.
The development of additional surface versions also dominated the research and development work in the Strategic Business Unit Paper. An expanded selection of gloss-varnish versions ranging from super-matt to high-gloss offers furniture manufacturers the option of meeting enhanced consumer requirements for furniture tailored to individual requirements. The product range is complemented by continuously developed flat foils and edgebandings with haptic or highly resistant finish surfaces.
After the very good start to the business year 2011 and the profit-taking in the second quarter, the share price of SURTECO SE declined by more than one fifth during the months from July to September in line with the very weak development on stock markets in general. The share price in July remained stable at around € 27, whereas subsequent months were characterized by a period of chronic uncertainty about the global financial crisis – together with the majority of shares worldwide – and the unquantifiable consequences for the global economy. The SURTECO share ended the third quarter of 2011 with low trading volumes and a price of € 20.85. However, over a period of twelve months, the value of the share still increased by nearly 10 % and yielded a gratifying performance. As a comparison, the German Small Cap Index posted a marginally negative development over the same period.
On 30 September 2011, the market capitalization of SURTECO SE amounted to € 230.9 million based on an unchanged number of shares at 11,075,522. The percentage of shares in free float remains at 22.6 %.
| January – September 2011 | |
|---|---|
| Number of shares | 11,075,522 |
| Free float in % | 22.6 |
| Price on 3/1/2011 in € | 26.75 |
| Price on 30/9/2011 in € | 20.85 |
| High in € | 32.00 |
| Low in € | 19.89 |
| Market capitalization as at 30/9/2011 in € 000s |
230,925 |
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
16 17
The weakening of growth in the furniture sector will be sustained at least until the end of the year. Moreover, the ongoing sovereign debt crisis in Europe and the USA will continue to lead to uncertainties and this will exert effects on consumer behaviour when purchasing furniture and in the construction sector. In 2011, we anticipate sales of € 400 million.
Although the one-off effects on earnings will not exert a comparable effect in the months from October to December, the issue of spiralling costs of materials will create negative effects at the end of the year. Against this background, a level of earnings comparable with the previous year is no longer feasible.
SURTECO will pursue a continuing process of increasing productivity and efficiency in all businesses in order to secure competitiveness over the long term. Measures to increase profitability will be adjusted in accordance with the economic environment. These proven programmes are intended to ensure sustainable and profitable growth over the medium and long term.
VERSION)
| Q3 | Q1-3 | ||||
|---|---|---|---|---|---|
| € 000s | 1/7/-30/9/ | 1/7/-30/9/ | 1/1/-30/9/ | 1/1/-30/9/ | |
| 2010 | 2011 | 2010 | 2011 | ||
| Sales revenues | 100,659 | 101,334 | 291,725 | 312,919 | |
| Changes in inventories | 1,998 | 642 | 7,998 | 1,948 | |
| Own work capitalized | 144 | 240 | 558 | 743 | |
| Total | 102,801 | 102,216 | 300,281 | 315,610 | |
| Cost of materials | -45,798 | -47,294 | -132,164 | -145,434 | |
| Personnel expenses | -24,901 | -24,870 | -74,751 | -77,971 | |
| Other operating expenses | -16,165 | -17,554 | -46,931 | -49,611 | |
| Other operating income | 977 | 768 | 2,499 | 2,438 | |
| EBITDA | 16,914 | 13,266 | 48,934 | 45,032 | |
| Depreciation and amortization | -5,657 | -5,457 | -15,750 | -16,087 | |
| EBIT | 11,257 | 7,809 | 33,184 | 28,945 | |
| Financial result | -2,909 | -1,831 | -6,736 | -10,415 | |
| EBT | 8,348 | 5,978 | 26,448 | 18,530 | |
| Income tax | -1,722 | -2,035 | -7,217 | -6,477 | |
| Net income | 6,626 | 3,943 | 19,231 | 12,053 | |
| Group share (consolidated net profit) | 6,666 | 3,925 | 19,400 | 12,046 | |
| Non-controlling interests | -40 | 18 | -169 | 7 | |
| Basic and diluted earnings per share in € | 0.60 | 0.35 | 1.75 | 1.09 | |
| Number of shares | 11,075,522 | 11,075,522 | 11,075,522 | 11,075,522 |
| Q3 | |||
|---|---|---|---|
| € 000s | 1/7/-30/9/ 2010 |
1/7/-30/9/ 2011 |
|
| Net income | 6,626 | 3,943 | |
| Difference from currency translation | -1,049 | 1,755 | |
| Financial instruments available for sale | -998 | 492 | |
| Other Comprehensive Income for the period | -2,047 | 2,247 | |
| Total Comprehensive Income | 4,579 | 6,190 | |
| Group share | 4,619 | 6,171 | |
| Non-controlling interests | -40 | 19 |
| Q1-3 | ||||
|---|---|---|---|---|
| € 000s | 1/1/-30/9/ 2010 |
1/1/-30/9/ 2011 |
||
| Net income | 19,231 | 12,053 | ||
| Difference from currency translation | 8,783 | -1,836 | ||
| Financial instruments available for sale | -3,129 | 1,158 | ||
| Other Comprehensive Income for the period | 5,654 | -678 | ||
| Total Comprehensive Income | 24,885 | 11,375 | ||
| Group share | 25,054 | 11,367 | ||
| Non-controlling interests | -169 | 8 |
| € 000s | 31/12/2010 | 30/9/2011 |
|---|---|---|
| ASSETS | ||
| Cash and cash equivalents | 62,395 | 43,532 |
| Trade accounts receivable | 41,293 | 46,018 |
| Inventories | 58,929 | 67,901 |
| Current income tax assets | 4,452 | 3,211 |
| Other current assets | 9,210 | 11,732 |
| Current assets | 176,279 | 172,394 |
| Property, plant and equipment | 164,055 | 160,047 |
| Intangible assets | 14,185 | 13,705 |
| Goodwill | 112,039 | 111,463 |
| Investments in associated enterprises | 1,773 | 1,873 |
| Financial assets | 4,125 | 770 |
| Non-current income tax assets | 657 | 657 |
| Other non-current assets | 1,325 | 1,335 |
| Other non-current financial assets | 1,933 | 3,305 |
| Deferred taxes | 5,173 | 4,795 |
| Non-current assets | 305,265 | 297,950 |
| 481,544 | 470,344 |
22 23
please turn over
| € 000s | 31/12/2010 | 30/9/2011 |
|---|---|---|
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||
| Short-term financial liabilities | 12,666 | 11,423 |
| Trade accounts payable | 22,918 | 22,731 |
| Income tax liabilities | 4,040 | 2,165 |
| Short-term provisions | 1,695 | 2,248 |
| Other current liabilities | 22,202 | 24,818 |
| Current liabilities | 63,521 | 63,385 |
| Long-term financial liabilities | 172,892 | 161,219 |
| Pensions and similar obligations | 10,400 | 10,498 |
| Deferred taxes | 21,292 | 20,396 |
| Non-current liabilities | 204,584 | 192,113 |
| Capital stock | 11,076 | 11,076 |
| Capital reserves | 50,416 | 50,416 |
| Retained earnings | 129,554 | 140,612 |
| Consolidated net profit | 21,705 | 12,046 |
| Capital attributable to shareholders | 212,751 | 214,150 |
| Non-controlling interests | 688 | 696 |
| Equity | 213,439 | 214,846 |
| 481,544 | 470,344 |
| Q1-3 | |||
|---|---|---|---|
| € 000s | 1/1/-30/9/ | 1/1/-30/9/ | |
| 2010 | 2011 | ||
| Earnings before income tax and non-controlling interests |
26,448 | 18,530 | |
| Reconciliation to cash flow from current business operations |
11,742 | 25,641 | |
| Internal financing | 38,190 | 44,171 | |
| Change in assets and liabilities (net) | -18,434 | -17,609 | |
| Cash flow from current business operations | 19,756 | 26,562 | |
| Cash flow from investment activities | -6,571 | -14,001 | |
| Cash flow from financial activities | -34,434 | -31,055 | |
| Change in cash and cash equivalents | -21,249 | -18,494 | |
| Cash and cash equivalents | |||
| 1 January | 84,846 | 62,395 | |
| Effect on changes in exchange rate on cash and cash equivalents |
1,256 | -369 | |
| 30 September 2011 | 64,853 | 43,532 |
SURTECO GROUP
| Capital stock |
paid in | Fair value measure ment for financial instruments |
Other compre hensive income |
Currency translation adjust ments |
Other retained earnings |
Consoli- dated net profit |
Non controlling interests |
Total |
|---|---|---|---|---|---|---|---|---|
| 11,076 | 50,416 | 6,975 | 201 | -12,644 | 126,172 | 9,239 | 380 | 191,815 |
| 0 | 0 | 0 | 0 | 0 | 0 | -4,430 | 0 | -4,430 |
| 0 | 0 | 0 | 0 | 0 | 0 | 19,400 | -169 | 19,231 |
| 0 | 0 | -2,405 | 0 | 8,059 | 4,809 | -4,809 | 0 | 5,654 |
| 11,076 | 50,416 | 4,570 | 201 | -4,585 | 130,981 | 19,400 | 211 | 212,270 |
| Additional capital |
Retained earnings |
| 31 December 2010 | 11,076 | 50,416 | 1,975 | 107 | -3,509 | 130,981 | 21,705 | 688 | 213,439 |
|---|---|---|---|---|---|---|---|---|---|
| Dividend payout | 0 | 0 | 0 | 0 | 0 | 0 | -9,968 | 0 | -9,968 |
| Net income | 0 | 0 | 0 | 0 | 0 | 0 | 12,046 | 7 | 12,053 |
| Other changes | 0 | 0 | 1,158 | 0 | -1,837 | 11,737 | -11,737 | 1 | -678 |
| 30 September 2011 | 11,076 | 50,416 | 3,133 | 107 | -5,346 | 142,718 | 12,046 | 696 | 214,846 |
| Sales revenues | ||||
|---|---|---|---|---|
| € 000s | SBU Plastics |
SBU Paper |
Recon ciliation |
SURTECO Group |
| 1/1/-30/9/2011 | ||||
| External sales | 179,955 | 132,964 | 0 | 312,919 |
| Internal sales | 630 | 2,167 | -2,797 | 0 |
| Total sales | 180,585 | 135,131 | -2,797 | 312,919 |
| 1/1/-30/9/2010 | ||||
| External sales | 171,903 | 119,822 | 0 | 291,725 |
| Internal sales | 487 | 840 | -1,327 | 0 |
| Total sales | 172,390 | 120,662 | -1,327 | 291,725 |
| Segment earnings (EBT) | ||
|---|---|---|
| € 000s | 1/1/-30/9/2010 | 1/1/-30/9/2011 |
| SBU Plastics | 18,192 | 16,599 |
| SBU Paper | 16,440 | 14,150 |
| Reconciliation | -8,184 | -12,219 |
| 26,448 | 18,530 |
| Sales revenues SURTECO Group | ||
|---|---|---|
| € 000s | 1/1/-30/9/2010 | 1/1/-30/9/2011 |
| Germany | 96,893 | 102,652 |
| Rest of Europe | 126,067 | 136,538 |
| America | 35,938 | 36,083 |
| Asia, Australia, Others | 32,827 | 37,646 |
| 291,725 | 312,919 |
| Sales revenues SBU Plastics | ||
|---|---|---|
| € 000s | 1/1/-30/9/2010 | 1/1/-30/9/2011 |
| Germany | 55,108 | 56,090 |
| Rest of Europe | 64,197 | 69,391 |
| America | 26,394 | 26,042 |
| Asia, Australia, Others | 26,204 | 28,432 |
| 171,903 | 179,955 |
| Sales revenues SBU Paper | ||
|---|---|---|
| € 000s | 1/1/-30/9/2010 | 1/1/-30/9/2011 |
| Germany | 41,785 | 46,562 |
| Rest of Europe | 61,870 | 67,147 |
| America | 9,544 | 10,041 |
| Asia, Australia, Others | 6,623 | 9,214 |
| 119,822 | 132,964 |
The consolidated financial statements of SURTECO SE for the period ended 31 December 2010 were prepared in accordance with the regulations of the International Financial Reporting Standards (IFRS), as they were adopted by the EU. This interim report as at 30 September 2011 has been prepared in accordance with the International Accounting Standard (IAS) 34 "Interim Financial Reporting". As a matter of principle, the same accounting and valuation principles as in the preparation of the consolidated financial statements for the business year 2010 are applied in drawing up the interim financial report for the quarter ended 30 September 2011. If the standards adopted by the IASB had to be applied from 1 January 2011, they were taken account of in this interim report if they exert effects on the SURTECO Group.
The mandatory standards and interpretations to be applied as from 1 January 2011 exerted no material effect on the net assets, financial position and results of operations of the Group.
We refer readers to the consolidated financial statements of SURTECO SE for the period ending 31 December 2010 in respect of further information on the details of the accounting and valuation methods used. The Group currency is denominated in euros (€). All amounts are specified in thousand euros (€ 000s).
The SURTECO Group interim consolidated financial statements include all domestic and foreign companies which are material for the net assets, financial position and results of operations in which SURTECO holds a direct or indirect majority of the voting rights. On 1 January 2011, the sales company SURTECO OOO, Russia, founded in 2009 was consolidated for the first time.
The Annual General Meeting of SURTECO SE passed a resolution on 17 June 2011 to pay out a dividend for the business year 2010 amounting to € 0.90 for each no-par-value share. The payout amounted to a total of € 9,967,969.80.
During the period under review, the companies of the Group undertook no business transactions with related parties that could have exerted a material influence on the net assets, financial position and results of operations of the Group.
| Cost of materials ratio in % | Cost of materials/Total output |
|---|---|
| Earnings per share in € | Consolidated net profit/Number of shares |
| EBIT margin in % | EBIT/Sales revenues |
| EBITDA margin in % | EBITDA/Sales revenues |
| Equity ratio in % | Equity/Balance sheet total |
| Gearing (debt level) in % | Net financial debt/Equity |
| Market capitalization in € | Number of shares x Closing price on the balance sheet date |
| Net financial debt in € | Short-term and long-term financial liabilities - Cash and cash equivalents |
| Personnel expense ratio in % | Personnel costs/Total output |
| Working capital in € | (Trade receivables + inventories) - Trade liabilities |
| FINANCIAL CALENDAR | |
|---|---|
| 30 April 2012 | Annual Report 2011 |
| 11 May 2012 | Three-month report January – March 2012 |
| 22 June 2012 | Annual General Meeting Sheraton Munich Arabellapark Hotel |
| 25 June 2012 | Dividend payout |
ticker symbol: SUR isin: DE0005176903
Chief Financial Officer Phone +49 (0) 8274 9988-563
Martin Miller Investor Relations and Press Officer Phone +49 (0) 8274 9988-508
Fax +49 (0) 8274 9988-515 Email [email protected] Internet www.surteco.com
Johan-Viktor-Bausch-Straße 2 86647 Buttenwiesen-Pfaffenhofen Germany
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