Semperit reports better sales, profits in first half

ERJ staff report (DS)

Vienna, August 10, 2010 - The Semperit Group saw total revenue climb 11.6% from the prior-year period, to EUR 330.3 million. Earnings before tax improved by 13.6% to EUR 39.8 million despite a massive rise in raw material costs. The net profit for the period of the Semperit Group amounted to EUR 22.0 million, considerably above the previous year's level.

Sempermed - the glove activity - reported good demand in the first half-year 2010. As a result, revenue generated by the Sempermed division rose by 12.6% to EUR 152.6 million (previous year: EUR 135.5 million). Margins increasingly normalised due to higher raw material prices and the appreciation of the Thai baht against the euro. Earnings before tax totalled EUR 20.2 million, a decrease of 6.0% from the previous year's figure of EUR 21.5 million.

In particular, the Semperflex division - which produces hose for industrial applications -- profited from the improved economic environment, expanding revenue by 29.6% to EUR 69.5 million. Semperit said the hydraulic hose segment, which had been hit very hard by the economic crisis in the previous year, was characterised by a significant upturn in the volume of incoming orders.

Demand climbed in all relevant markets and was particularly strong in Asia. As a consequence, temporary shut-downs at production capacities were reversed.

The Semperform division witnessed a turnaround in the second quarter, with revenue up 6.9% to EUR 51.4 million. Semperit said, “Sales in the sponge rubber segment, which is highly dependent on the construction industry, stabilised at a somewhat higher level than in the previous year. The order volume in the railway superstructure segment has improved since May.”

In the first half-year 2010, the Sempertrans division - which makes conveyor belts - was the only one suffering a decline in revenue, which fell 3.6% from the previous year to EUR 56.8 million. The newly taken over conveyor belt factory Sempertrans Best primarily focused on initial consolidation measures designed to improve production in order to meet Semperit standards for quality and product construction. Sempertrans started to build up a customer base on the Chinese market.

The company said the economic outlook is too uncertain to make forecasts for the remainder of the year. Not only is demand unpredictable, but raw material prices also appear to be moving fast and unpredictably.

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Press release from Semperit

Quarterly report from Semperit