Semperit pegged back by medical-sector decline
Vienna – Amid “difficult” first-half trading conditions, Austrian group Semperit AG saw earnings (EBITDA) grow 4.8 percent, to €52.8 million, on sales of €438.7 million – 2.7-percent lower than in the first six months of last year.
Increased sales and higher profitability in the Industrial Sector helped to counter a weaker performance in the Medical Sector, the maker of latex gloves and industrial rubber products said 16 Aug.
On the other hand, the group was impacted by low demand in “economically sensitive” markets, rising energy and raw material costs, and weak sales prices in the Sempermed medical and examination glove business.
Semperit’s Industrial Sector unit produces hydraulic and industrial hoses, conveyor belts, escalator handrails, construction profiles, cable car rings, and products for railway superstructures.
First half revenues from the Industrial Sector rose 3.7 percent to €269.0 million, while EBITDA climbed 2.3 percent to €52.3 million. The performance was partly helped by the integration of the German profiles manufacturer Leeser.
Sales at the Sempermed medical segment fell 11.4 percent to €169.7 million on price pressure and "the focus on high-margin customer relationships." EBITDA dropped 32.0 percent to €7.9 million.
Sempermed was also impacted by the “burdening influences” of the cooperation with Thai joint venture partner Sri Trang, and non-recurring costs from an ongoing capacity expansion in Malaysia.
In response, Fahnemann said the group was implementing programmes for optimisation and efficiency, while also targeting new markets.
“This and our new highly efficient production sites make us well prepared to perform better than the market even in the current environment,” he stated.
For the full year, Semperit forecast the generally low demand in the Industrial Sector to continue due to the current economic situation. Medical product demand is expected to develop steadily but with higher raw material and energy costs and continuing price pressure.
Overall, the Austrian group said it was “not capable of achieving the operational results of 2015,” despite a good order situation for the coming months. Last year, Semperit generated sales of €915 million and an EBITDA of €96 million.
Group-wide, capital investments of around €60 million are planned for 2016.
Semperit is based in Vienna, and has its global R&D centre is in Wimpassing, Lower Austria. It employs about 7,000 people worldwide and operates 22 manufacturing facilities – in Austria, Hungary, Czech Republic, Poland, Italy, Germany, France, Thailand, China, India, Malaysia and the US.
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