Surteco Group SE

Earnings Release • Nov 30, 2004

News Details

Ad-hoc | 30 November 2004 07:35

SURTECO increases sales significantly

Ad-hoc-announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– SURTECO increases sales significantly Despite unsatisfactory market conditions in Germany, sales and income continue to rise at the “specialist manufacturer” Buttenwiesen-Pfaffenhofen. – SURTECO AG is one of the leading suppliers worldwide of edging strips based on paper and plastic, and decorative surface foils. The Group operates a niche strategy to support this position as a key supplier for the construction and furnishing industry. This strategy is based on high-quality “speciality ranges” that have made the company the leading player in the technological field. Despite the fact that SURTECO AG continues to be faced with unsatisfactory order books and tough price competition especially in the domestic market, the company has succeeded in increasing sales and earnings during the past nine months. The Strategic Business Unit (SBU) Paper includes the activities of Group companies BauschLinnemann + Co. KG and Bausch Dekor. Sales at 30 September had increased by 8 % to 140.9 million euros. Domestic sales bucked the sector trend and were disproportionately strong with an increase of 11 %. Successful introduction of new designs was one of the factors making a significant impact. Other factors for success included buoyant order books in the caravan industry, with SURTECO AG supplying coating materials for interior design. Sales at the Strategic Business Unit (SBU) Plastics encompassing the companies in the Döllken Group climbed by 3 % to 141.2 million euros during the first three quarters of this year, but the group continued to be beset by negative currency effects due to the strong foreign proportion of sales (+9 %). During the first nine months of the current financial year, SURTECO AG generated sales amounting to 282.2 million euros, an increase of 6 %. Despite unfavourable currency parities, the Group’s optimistic outlook for the future is focused on its commitment abroad, with the proportion of exports remaining unchanged at 60 %. The focus is on Asia and Eastern Europe where the Group is setting up new production facilities, agencies and sales offices, and focusing on further growth. During the first nine months of this fiscal year, EBITDA increased in comparison to the year-earlier period by 9 % to 54.5 million euros. EBIT even went up by 15 % to 34.6 million euros. Earnings after taxes at SURTECO AG for the first three quarters amounted to 14.2 million euros, an increase of 48 % over the equivalent year-earlier period. The positive quarterly figures for recent months have encouraged SURTECO AG to increase their sales forecast for the current fiscal year to approximately 373 million euros (+ 5 %). Even if the German furniture and construction industry continues to be beset by an extremely difficult environment, the planned curve for foreign business will compensate for domestic weakness in sales. The specialist in surface technologies anticipates earnings on a par with the record year of 2002, when SURTECO AG reported EBT of 30.0 million euros and consolidated net income of 17.6 million euros. Particularly when the situation in markets is tense, there are clear indications that the innovative product range of SURTECO AG is able to provide the stimulus required for additional growth. For example, during the past few months the SBU Paper has started development work on an innovative specialist foil for display platforms used in the advertising market. A specialist acrylic glass plastic edge recently launched by SBU Plastics was granted the Innovation Scout 2004 award at a trade fair for the sector. end of ad-hoc-announcement (c)DGAP 30.11.2004 ——————————————————————————– WKN: 517 690; ISIN: DE0005176903; Index: Listed: Amtlicher Markt in Frankfurt (Prime Standard) und München; Freiverkehr in Berlin-Bremen, Düsseldorf und Stuttgart 300735 Nov 04