SIMONA AG — Earnings Release 2013

Oct 30, 2013

News Details

Ireland | 30 October 2013 07:00

SIMONA Aktiengesellschaft: Sales revenue up in the third quarter – Unsatisfactory earnings performance

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

30.10.2013 07:00

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

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Interim Announcement within the Second Half of 2013

Sales revenue up in the third quarter - Unsatisfactory earnings performance

Kirn, 30/10/2013. The SIMONA Group generated sales revenue of EUR77.6
million in the third quarter of 2013, a performance considered partially
satisfactory. This figure was close to that recorded in the third quarter
of 2012, when revenue had totalled EUR78.1 million. Compared to the second
quarter of 2013 (EUR71.3 million), the Group managed to lift sales revenue
by 8.9 per cent. Growth generated in the third quarter was attributable in
particular to a slight improvement in investment spending in Germany by
customers operating in the chemical and mechanical engineering industry,
complemented by continued forward momentum in Eastern Europe.

In total, the SIMONA Group generated revenue of EUR218.0 million in the
period up to 30 September 2013, which is 4.0 per cent less than in the same
period a year ago (EUR227.2 million). This was due primarily to a weak
start to the year and a downturn in sales revenue in the United States
following the company's decision to refocus on its core business.

In the area of semi-finished parts, sales of extruded and compression
moulded sheets made of PE and PP were comparable in the first three
quarters to the figure recorded for the same period a year ago. The Group
recorded growth within the area of extruded PVC sheets, which are used
mainly in the construction industry and for applications in the advertising
sector. The product group comprising pipes and fittings made of PE and PP
showed visible signs of contraction compared to the previous year, although
gains were recorded in the area of fittings made of PE, PP and
fluoroplastics.

Despite a considerable improvement in the third quarter compared to the
previous three months, earnings performance as a whole was unsatisfactory.
Commodity prices are extremely volatile, and having reached a high level
overall, they are exerting downward pressure on the Group's gross profit
margin. The continued rise in energy prices and the payment of EEG fees
under the German Renewable Energy Act have resulted in significant cost
increases. Earnings before interest and taxes (EBIT) amounted to EUR5.5
million (prev. year: EUR8.8 million) or 2.5 per cent of sales revenue
(prev. year: 3.9 per cent).

There were no significant changes to the Group's financial position or cash
flows in the first nine months of 2013. Liquidity stood at EUR53.6 million
as at 30 September 2013 (31/12/2012: EUR58.0 million).

If business continues to progress along positive lines in the fourth
quarter, the Group's revenue target of EUR280-290 million is considered
achievable. To the best of the company's knowledge at present, the
projected EBIT margin of 3-4 per cent will not be attainable.

The Management Board

30.10.2013 DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de

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Language: English
Company: SIMONA Aktiengesellschaft
Teichweg 16
55606 Kirn an der Nahe
Germany
Internet: www.simona.de

End of Announcement DGAP News-Service

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