SIMONA AG — Earnings Release 2014

Oct 29, 2014

News Details

Ireland | 29 October 2014 07:00

SIMONA AG: Interim Announcement within the Second Half of 2014

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

29.10.2014 07:00

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

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SIMONA Group in Q3: Further revenue growth - Marked improvement in EBIT

Kirn, 29/10/2014. The SIMONA Group again managed to expand its revenue
significantly in the third quarter of 2014. Although the pace of growth
slowed in response to a less favourable outlook for the global economy,
SIMONA was able to stand its ground in a challenging business environment.
Sales revenue totalled EUR86.7 million, up 12.0 per cent on the figure
posted in the third quarter of 2013 (EUR77.6 million). In the first nine
months of the financial year as a whole the SIMONA Group generated sales
revenue of EUR250.6 million. This represents a year-on-year improvement of
15 per cent (EUR218.0 million), achieved through organic growth as well as
the acquisition of Laminations and Boltaron in the United States.

SIMONA succeeded in expanding its business in the core market of Europe,
benefiting in part from new and next-generation products targeted at the
construction industry. Elsewhere, business in Eastern Europe was adversely
affected to some extent by the crisis in Ukraine. Despite these challenges,
the Group managed to maintain its forward momentum in the key markets of
this region through growth in the product category comprising semi-finished
parts. Fuelled by its recent acquisitions, the Group's revenue generated
from sales in the United States increased markedly. Business in Asia also
produced growth for SIMONA in the first nine months.

The product area encompassing finished and semi-finished parts saw a
significant increase in sales revenue from extruded sheets made of PE, PP
and fluoropolymers, which are used primarily in the field of chemical tank
and equipment construction. Business relating to foamed PVC sheets for
applications in the advertising and structural engineering industry
developed well in the period under review. Having performed solidly in the
first half of the financial year, the product category comprising pipes and
fittings lost some of its momentum in the third quarter as a result of
dwindling infrastructure investments within the market as a whole and the
crisis in Ukraine. Benefiting from successful project business, the company
achieved growth in the area of PE and PP pipes during the first nine months
of the financial year.

The two acquisitions in the US were financed through own funds held by the
SIMONA Group. As a result, the Group saw its cash and cash equivalents
decline in the period under review, while total assets increased. The
Group's financial position, performance and cash flows remain solid.

Earnings rose significantly in the first nine months of the financial year.
As at 30 September 2014, EBIT amounted to EUR12.6 million, more than double
the figure recorded for the same period a year ago (EUR5.8 million). The
EBIT margin stood at 5.0 per cent (30 Sept. 2013: 2.6 per cent), which is
within the range targeted for the financial year as a whole.

The SIMONA Group is anticipating revenue of EUR325-335 million for the 2014
financial year, together with significant growth in earnings. While the
targeted EBIT margin of 5.0 per cent for the full financial year is
ambitious, it is considered achievable at an operational level, without the
exceptional influences of restructuring expenses associated with the
process of combining the two sites in the United States.

The Management Board

29.10.2014 The DGAP 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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