Surteco Group SE

Earnings Release • May 28, 2004

News Details

Ad-hoc | 28 May 2004 07:29

SURTECO AG BENEFITS FROM INNOVATIONS

Ad-hoc-announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– Product innovations tailored to the market stimulate sales and income Moderate growth planned despite difficult framework conditions Buttenwiesen-Pfaffenhofen, 28 May 2004 – SURTECO AG, the world’s leading provider of surface technologies based on specialist technical papers and plastics, successfully bucked the lack of economic activity in the sector during the first quarter (01/01-31/03) of the current fiscal year with an increase in both sales and income. The Group has structured all its activities in the two Strategic Business Units “Paper” and “Plastics”. Sales at 96.8 million euros exceeded sales for the equivalent year-earlier quarter (94.1 million euros) by 3 %. EBITDA at 20.3 million euros was 8 % above the amount for the year-earlier quarter, while EBIT at 13.6 million euros was as much as 11 % up on earnings for that quarter. The company achieved sales amounting to 355 million euros for 2003 and managed to counter the continuing lack of economic activity in the construction and furniture sector with innovative products tailored to the market. The main focus of activities for the SBU Paper is on manufacturing edging strips and flat foils – for example for coating furniture – and it achieved an increase in sales of 5 % to 48.9 million euros by the close of the first three months. Approximately 17.5 million euros were attributable to Germany. The SBU “Plastics” produces a range of high-quality products made of different plastics. Thermoplastic edging tapes are the main sales engines and the business unit succeeded in increasing sales during the first quarter to 47.9 million euros (+1 %). 23.7 million euros (+7 %) came from the German market. Since SURTECO AG generates 58 % of consolidated sales abroad, the company was naturally affected by the weak dollar. Assuming adjustments for currency parities, sales in the SBU Paper would have advanced by 6 % to 49.4 million euros and in the SBU Plastics by 3 % to 48.9 million euros. The SBU Paper has invested substantial sums in a new paint facility. This delivers high-quality coating materials based on sophisticated specifications and has proved extremely effective in routine production. The aim now is to expand the range of applications with additional product variants. These include a new foil that is highly resistant to friction, which should open up new market segments (e.g. stairs and windows). The SBU Plastics has also been pursuing innovative production methods which increase the quality of the products while at the same time reducing manufacturing costs. Here, too, they have contributed to optimizing the product range, and this has underscored the technological leadership enjoyed by SURTECO AG in this market. Even if these quarterly figures give grounds for an optimistic outlook, SURTECO AG continues to stand by its cautious estimate for the current business year. Year-end figures slightly above those for 2003 are projected for the end of the year. There is currently no indication of a reversal of the sustained weakness in the furnishing and DIY sectors – particularly in Germany – and any other forecast is therefore precluded. end of ad-hoc-announcement (c)DGAP 28.05.2004 ——————————————————————————– WKN: 517 690; ISIN: DE0005176903; Index: Listed: Amtlicher Markt in Frankfurt (Prime Standard) und München; Freiverkehr in Berlin-Bremen, Düsseldorf und Stuttgart 280729 Mai 04