SIMONA AG — Earnings Release 2009

Nov 10, 2009

News Details

Ireland | 10 November 2009 09:27

Simona AG: Trough has been reached – Business remains at low level – Earnings in positive territory thanks to cost streamlining

Simona AG / Release of an announcement according to Article 37x of the WpHG [the German Securities Trading Act]

10.11.2009

Interim report according to Article 37x of the WpHG, transmitted by
DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.

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The SIMONA Group recorded a substantial year-on-year fall in sales revenue
in the first three quarters of 2009, generating EUR161.9 million in the
period under review, compared to EUR236.9 million a year ago. This
corresponds to a decline of 31.7 per cent. Business within the area of
semi-finished plastics was again adversely affected by a severe reluctance
on the part of chemical tank and equipment manufacturers to invest in new
products. On a more positive note, however, the market saw demand stabilise
at a low level from the beginning of the second half. Within the area of
pipes and fittings, project business in particular recovered slightly in
the period under review, thus prompting a modest increase in revenue within
some segments. SIMONA continues to see considerable growth potential
worldwide for polymer-based applications within the field of mobility, life
sciences and environmental technology. Committed to achieving its ambitions
for expansion in this area, the company has established a separate business
unit targeted at these markets.
In the period under review, SIMONA continued to pursue measures - initiated
towards the end of 2008 - aimed at reducing costs and unlocking efficiency
gains. On the back of these efforts, the Group managed to achieve earnings
that remained in positive territory during the first three quarters.
There were no significant changes to the company's financial position or
cash flows in the first three quarters of 2009, with liquidity remaining
solid at all times. The risks associated with the future course of business
have not increased significantly compared to those outlined in the
first-half report. The general downturn in the global economy appears to
have come to a halt. Having said that, those markets that are of key
importance to SIMONA are likely to face protracted stagnation. To varying
extent, SIMONA will continue to apply its policy of short-time work at all
sites until at least the end of 2009.
As regards the 2009 financial year as a whole, the SIMONA Group remains
confident that achieving EUR200 million in revenues and - based on earnings
performance to date - positive EBITDA is a realistic target.
Compared to the third quarter of 2008, the number of people employed within
the Group fell by 27 to 1,233 as at 30 September 2009.
Kirn, November 2009.
The Management Board

10.11.2009 Financial News distributed by DGAP. Media archive at www.dgap-medientreff.de and www.dgap.de

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Language: English
Company: Simona AG
Teichweg 16
55606 Kirn an der Nahe
Deutschland
Internet: www.simona.de

End of News DGAP News-Service

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