SURTECO GROUP SE
SURTECO SE: Sound start in spite of negative impacts from the raw materials side
DGAP-News: SURTECO SE / Key word(s): Quarterly / Interim Statement SURTECO SE: Sound start in spite of negative impacts from the raw materials side – Group sales stable at EUR 169.7 million – EBIT increases slightly to EUR 10.7 million, consolidated net profit up by +17 % to EUR 6.2 million – Free cash flow increases after three months to EUR 10.7 million – Outlook for 2017 unchanged: EBIT is projected to increase to between EUR 42 and 46 million in spite of increases in the price of raw materials Buttenwiesen-Pfaffenhofen, 15 May 2017 – SURTECO SE, one of the world’s leading manufacturers of decorative surface materials and producer of technical extrusions (profiles) made a sound start to the business year 2017 in line with expectations. In spite of price increases on the raw materials side, productivity increases arising from successful completion of concentration for the German decorative printing locations in the third quarter of 2016 led to a three-percent improvement in earnings before financial result and income tax (EBIT) in the first quarter of 2017 to EUR 10.7 million (Q1-2016: EUR 10.4 million). The consolidated net earnings and the earnings per share in each case went up by 17 % to EUR 6.2 million (Q1-2016: EUR 5.3 million) and to EUR 0.40 (Q1-2016: EUR 0.34) respectively. Group sales at EUR 169.7 million EUR (Q1-2016: EUR 170.2 million) remained at the level of the previous year in spite of first-time consolidation of British company Nenplas. While the result for the plastics segment (incl. Nenplas) has increased substantially, the restrained demand in the paper segment continued to be maintained during the first three months as expected. However, this is likely to undergo positive change in the second half of the year. SURTECO is therefore maintaining its overall targets unchanged for the year. The Group wants to achieve a slight increase in Group sales and an improvement in EBIT to between EUR 42 and 46 million. “Thanks to the productivity increase in the paper segment, we have been able to more than compensate for the drastic increase in the costs of raw materials. As a result, we are striving to increase EBIT to between EUR 42 and 46 million in the year 2017 overall,” commented Dr. Herbert Müller, Chairman of the Board of Management of SURTECO SE. Varying earnings development in the segments The sales and earnings development reveals a different picture in the two Strategic Business Units. While sales in the plastics segment increased by 15 % to EUR 72.7 million (Q1-2016: EUR 63.4 million) as a result of acquisition and organic growth, the restrained demand also evident in the first quarter and discontinuation of low-margin activities in the paper segment resulted in a drop in sales of 9 % to EUR 97.0 million (Q1-2016: EUR 106.8 million). A contrary trend was recorded for EBIT. Completion of the integration measures led to an increase in earnings in the paper segment of 35 % to EUR 7.6 million (Q1-2016: EUR 5.6 million). By contrast, the dramatic price increases for the important raw material ABS (acrylonitrile butadiene styrene) resulted in a fall in EBIT for the plastics segment to EUR 5.4 million (Q1-2016: EUR 6.4 million). Free cash flow at EUR 10.7 million, level of debt reduced further At the beginning of the year, SURTECO succeeded in reducing the net financial debt, which increased as a result of the Nenplas acquisition compared with the previous year, from EUR 135.6 million to EUR 126.3 million. The level of debt (gearing) came down accordingly from 39 % to 36 %. The company therefore posted a very robust equity ratio of 51.1 % on 31 March 2017. The strong cash-flow position emerged after the first three months of the business year evident in free cash flow of EUR 10.7 million (Q1-2016: EUR 6.1 million). This means that the Group has a healthy platform for the growth planned in the future. Outlook for 2017: EBIT target in the range between EUR 42 and 46 million The company is currently assuming slightly increased sales for the Group in the business year 2017. This projection is based on an expected upturn in sales for the paper segment in the second half of the year coupled with substantial growth in sales for the plastics segment driven by the Nenplas acquisition and organic growth. SURTECO continues to expect a value for EBIT of between EUR 42 and 46 million (2016: EUR 40.9 million). In this scenario, earnings for the Strategic Business Paper are likely to be slightly above the value for the previous year and earnings for the Strategic Business Unit Plastics are projected to be significantly above the year-earlier value.
Profile of SURTECO This press release contains statements of future forecasts or expectations and other forward-looking statements and involves known and unknown risks and uncertainties. There is therefore no guarantee for the statements and expectations expressed herein. The actual results and developments may differ substantially. The company does not intend to – and assumes no obligation – to update any forward looking statements contained herein or to adapt such information to future results or developments.
1 Difference to balance of segment earnings due to internal clearing
15.05.2017 Dissemination of a Corporate News, transmitted by DGAP – a service of EQS Group AG. |
Language: | English |
Company: | SURTECO SE |
Johan-Viktor-Bausch-Str. 2 | |
86647 Buttenwiesen-Pfaffenhofen | |
Germany | |
Phone: | +49 (0)8274 99 88-0 |
Fax: | +49 (0)8274 99 88-5 05 |
E-mail: | ir@surteco.com |
Internet: | www.surteco.com |
ISIN: | DE0005176903 |
WKN: | 517 690 |
Listed: | Regulated Market in Frankfurt (Prime Standard), Munich; Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Stuttgart, Tradegate Exchange |
End of News | DGAP News Service |