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ad-hoc disclosure transmitted by euro adhoc with the aim of a Europe-wide
distribution. The issuer is solely responsible for the content of this
announcement.
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13.11.2012
- Due to a difficult economic environment, slight decline in revenue of 1.7% to
EUR 615.5 million
- Revenue in the third quarter of 2012 once again more than EUR 200 million
- EBIT margin of more than 9%, despite a decline in EBIT
- Considerable increase in net liquidity of more than 30% to EUR 121.3 million
The performance of the Semperit Group in the first three quarters of 2012 was
dominated by global economic weakness and persistently volatile commodity
prices. Compared to the same period last year, consolidated revenue in the first
nine months of 2012 declined slightly by 1.7% from EUR 626.2 million to EUR
615.5 million. Despite difficult economic conditions, the Group once again
generated revenue of more than EUR 200 million in the third quarter.
The decline in revenue in the first nine months of 2012 was primarily the
result of volume effects in the Semperflex segment for industrial hoses and
elastomer sheeting as well as portfolio optimisations in the Sempertrans
segment. In the Sempermed segment, volumes for examination and surgical gloves
increased. Semperflex's Hydraulic Hoses business unit was able to maintain the
volume it achieved in the economically strong previous year period. The shift
in Sempertrans portfolio away from textile conveyor belts towards increased
production of higher-value metal conveyor belts enabled the positive effect on
prices to continue.
Earnings before interest, tax, depreciation and amortisation (EBITDA) in the
first nine months of 2012 decreased by 5.0% from EUR 86.6 million to EUR 82.3
million. EBIT (earnings before interest and tax, i.e., operating profit)
decreased by 11.1% from EUR 64.9 million to EUR 57.7 million. This resulted in
an EBIT margin of 9.4% compared to 10.4% in the comparable period last year.
In the third quarter of 2012, EBITDA stood at EUR 28.4 million compared to EUR
30.3 million (- 6.1%). EBIT came in at EUR 20.2 million compared to EUR 23.1
million (-12.6%), and the EBIT margin therefore stood at 9.8% (10.5% in the
previous year's quarter).
Profit for the reporting period declined by 13.1% from EUR 40.7 million to EUR
35.4 million. This led to earnings per share of EUR 1.72 for the first nine
months of 2012, down from EUR 1.98 in the same period last year. In the third
quarter of 2012, profit for the period was reported at EUR 11.5 million, EUR
3.7 million below the prior-year quarter.
The Group's earnings were primarily impacted by the lower contribution of the
Sempermed segment. Intense competition and below-average capacity utilisation
at the start of 2012 were responsible for the decline. This trend was
reinforced in the first quarter by higher energy costs due to heavy rainfalls in
Thailand and incremental costs in connection with the start-up phase at the new
factory in Surat Thani, Thailand. Capacity utilisation improved significantly in
the second and third quarter of 2012, helping to considerably increase
Sempermed's contribution to earnings.
All in all, the earnings performance in the Industrial Sector was positive and
was able to expand beyond the high level of earnings achieved during the same
period last year. But signs of a slowdown in customer demand became apparent
during the third quarter, which was addressed by optimising capacity and costs.
Due to the expansion of capacity, Sempermed and Semperflex focused on
increasing sales volumes and gaining market share. Following the successful
turnaround in 2011 at Sempertrans, a further improvement in the quality of
earnings was achieved. The goal in the Semperform segment was to protect its
margin quality.
Investments in the first three quarters of 2012 were down year-on-year from EUR
36.1 million to EUR 29.6 million. Investment activities were focused on the
further expansion of the new factory in Thailand and on replacement and
expansion investments for Semperflex at the locations in the Czech Republic,
Thailand and China.
At 59.3%, the Group's equity ratio as of September 30, 2012 was maintained at a
very healthy high level compared with the industry sector average. Extrapolated
for the full year, return on equity was 11.8% (first three quarters of 2011:
15.2%). Cash and cash equivalents increased from EUR 97.9 million at the end of
2011 to EUR 127.5 million, an increase of more than 30%.
Outlook
The current difficult environment does not allow to expect a rapid recovery in
demand. Instead, the present level of order intake will continue in the fourth
quarter of 2012 and in the first quarter of 2013. We expect that any positive
momentum could start from the second quarter of 2013 onwards.
In the Industrial Sector, the previous pace of business is expected to slow
somewhat in the upcoming months. It is currently not expected that economic
stimulus will boost demand. Customers are increasingly placing orders on a
short-term basis, particularly in the Semperflex segment and in parts of the
Semperform segment.
On October 8, 2012, Semperit announced the acquisition of the Malaysian glove
producer Latexx Partners Berhad. Now that antitrust clearance has been
received, the focus is on completing the transaction followed by the
integration.
Despite the current difficult economic circumstances, Semperit Group reconfirms
its multi-year growth targets, aiming for double-digit revenue growth on average
in the period from 2010 through 2015 and simultaneously an EBIT margin of around
10%.
The report on the first three quarters of 2012 is available for download at:
www.semperitgroup.com/en/ir
end of announcement euro adhoc
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(END) Dow Jones Newswires
November 13, 2012 02:04 ET (07:04 GMT)
