Surteco Group SE

Quarterly Report • Nov 11, 2009

News Details

Ad-hoc | 11 November 2009 07:45

SURTECO SE derives cautious optimism from the domestic market

SURTECO SE / Interim Report/Quarter Results

11.11.2009

Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted by
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The issuer is solely responsible for the content of this announcement.

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Even though there have been tentative signs of an economic recovery in some
markets for SURTECO SE since September, the leading international supplier
to the construction and furnishing industry is not yet projecting a
sustainable recovery in its business over the medium term.

The lack of economic impetus resulted in a decline in sales revenues of 20
percent to EUR 253.8 million at SURTECO SE over the past nine months by
comparison with the previous year. An analysis of the detailed data shows
that domestic sales are currently significantly more stable than foreign
business. During the first half of the year, SURTECO SE demonstrated a
decline in domestic sales of only 15 percent, whereas the drop in foreign
sales was 26 percent on 30 June. During the past three months of the
reporting period, domestic sales dropped by only 11 percent, so that
accumulated domestic sales revenues only fell short of the equivalent
year-earlier figure by 14 percent at EUR 93.7 million. However, this
contrasted with the ongoing decline in foreign business of 23 percent to
EUR 160.1 million.

The main sales drivers are the product lines grouped in the Strategic
Business Unit Plastics (including plastic edging tapes, plastic components,
skirtings and wall edging strips) with which SURTECO SE generated sales
amounting to EUR 158.4 million in the first nine months of the current
business year and hence came 20 percent below the value for 2008.

In the Strategic Business Unit Paper, SURTECO SE supplies paper-based
surface materials (including edgebandings, flat foils, decorative papers)
and alongside furniture manufacturers these products are primarily targeted
on the door and caravan industry. These market segments posted a slight
increase in demand in Germany during the third quarter. Nevertheless, sales
of EUR 95.4 million with these products based on specialist papers for
technical applications were still 18 percent below the equivalent
year-earlier figures on 30 September.

Despite the difficult conditions and tense relationships prevailing in the
market, SURTECO SE is in a position to report satisfactory income. After
nine months, EBITDA reached EUR 40.8 million and hence fell proportionately
slightly less than sales development at 17 percent. The EBITDA margin at
16.1 percent for the reporting period was 0.5 percentage points above the
corresponding value for 2008.

The improved EBITDA margin is linked with a restructuring and
cost-reduction programme introduced in 2008. This package of measures was
the response of SURTECO SE to the economic turbulence - and appropriate
provisions for this programme were formed in the previous year. Site
optimization in North America has meanwhile been completed. As announced,
the plant in Montreal was closed and production transferred to the plants
in Brampton/Canada, Greensboro/USA, and Santiago/Chile. The merger of
Döllken & Praktikus GmbH with Döllken-Weimar GmbH - retroactive effect to 1
January 2009 - constituted a further step towards simplification of the
Group structure and concentration of the sales and logistics activities in
the area of skirtings.

Even if current developments in the market provide no concrete indicators
for significant optimism, SURTECO SE intends to continue taking an
offensive approach to structuring its future. A sales company was recently
founded in Moscow and this highlights the Group's commitment to being close
to the Russian market and markets in neighbouring countries. In Santiago de
Chile, the number of extrusion lines was increased at a new plant in order
to give SURTECO SE the capability to meet the demand for 'special surfaces'
in the South American market.

11.11.2009 Financial News distributed by DGAP. Media archive at www.dgap-medientreff.de and www.dgap.de

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Language: English
Company: SURTECO SE
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
Internet: www.surteco.com
ISIN: DE0005176903
WKN: 517 690
Listed: Regulierter Markt in Frankfurt (Prime Standard), München;
Freiverkehr in Berlin, Düsseldorf, Stuttgart

End of News DGAP News-Service

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