Semperit reports reduced profits on modest sales rise

ERJ staff report (DS)

Vienna - Semperit AG said difficult economic conditions lead to a modest increase in sales for the six months to June 2012.

The company said consolidated revenue in the six months rose by 0.9 percent to EUR 409.8 million year-on-year, from EUR 406.1 million. EBITDA (earnings before interest, tax, depreciation and amortisation) in the first half of 2012 decreased 4.3 percent to EUR 53.9 million from EUR 56.4 million. EBIT (operating profit) fell by 10.3 percent to EUR 37.5 million, from EUR 41.8 million.

Semperit said the results had been affected by the low contribution of its Sempermed unit which makes medical gloves. That market has become fiercely competitive, said the company. Meanwhile, the company saw below-average capacity utilisation at the beginning of the year and higher energy costs in the aftermath of the strong rains that hit Thailand in the first quarter of the year.

Semperit said capacity utilisation improved significantly in the second quarter of 2012 and Sempermed's contribution to earnings increased sharply higher as a result. Overall, said the company, sales volumes were higher both for examination gloves and for surgical gloves in the Sempermed segment.

Results in the Industrial Sector's segments were positive overall and were higher than in the prior-year period.

The Hydraulic Hoses Unit in the Semperflex segment virtually matched the sales volumes recorded during the very strong first half of 2011.

The shift in the Sempertrans segment's portfolio away from textile-reinforced conveyor belts towards increased production of steel-reinforced conveyor belts made it possible to continue the positive effect on selling prices and to improve on the quality of earnings once again following the turnaround in 2011.

The Semperit Group is confirming its mid-term growth targets, with double-digit revenue growth on average in the period from 2010 up to 2015, and with EBIT margin continuing at approx. 10 percent.

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Press release from Semperit