SIMONA AG — Earnings Release 2010

Nov 10, 2010

News Details

Ireland | 10 November 2010 07:00

Simona AG:

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

10.11.2010 07:00

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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Interim Announcement within the Second Half of 2010

SIMONA maintains positive revenue performance in third quarter - Earnings
below expectations

Kirn, 10 November 2010. The SIMONA Group succeeded in maintaining its
forward momentum during the third quarter of 2010 both in terms of revenue
and sales volumes. In total, the Group generated revenue of EUR199.7
million in the period up to 30 September 2010, which was 23 per cent more
than in the same period a year ago. In the third quarter of 2010, Group
revenue amounted to EUR70.0 million, up from EUR55.6 million in the third
quarter of 2009. After a tentative start in the first two months of 2010,
the Group thus managed to achieve double-digit revenue growth from March
onwards. Following a severe slump in revenues during 2009, business has yet
to return to its pre-crisis level. However, sales revenue is currently
above target. On a less positive note, limited supply and spiralling prices
have been exerting pressure on profit margins, as a result of which market
performance was bifurcated in the period under review. Within the area of
semi-finished plastics, more expansive investment spending in the key sales
markets - chemicals and mechanical engineering - prompted a rise in sales
volumes of PE and PP sheets used in tank and apparatus construction.
Business relating to plastic sheets used by the photovoltaics and solar
industry also developed well in the period under review. By contrast,
business centred around PVC sheets was more subdued.

As a result of surging commodity prices, procurement costs again reached an
all-time high in the third quarter, thus impacting severely on margins.
Although pre-tax profits for the third quarter were above par at EUR1.5
million, this performance was considered unsatisfactory.

There were no significant changes to the company's financial position or
cash flows in the first nine months of 2010.

As for fiscal 2010 as a whole, SIMONA expects to achieve sales revenue at
the targeted level of EUR240-250 million. The global economic recovery has
become more stable, and Germany in particular has seen its growth forecasts
revised upwards. The propensity to invest within the chemical and
mechanical engineering sector - an important factor for our own business
performance - has improved but has yet to reach the level recorded prior to
the financial and economic crisis. The high prices for raw materials
processed by our company, in conjunction with supply-side shortages, will
be key determinants for our future performance. SIMONA will achieve its
target of positive earnings before taxes. Owing to the surge in commodity
prices, however, earnings are expected to develop at a slower rate than
revenue, which has been particularly buoyant.

The Management Board

10.11.2010 DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
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Language: English
Company: Simona AG
Teichweg 16
55606 Kirn an der Nahe
Deutschland
Internet: www.simona.de

End of Announcement DGAP News-Service

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