Vienna – Semperit Group has posted sharp falls in revenue and earnings amid “ongoing difficult market environment,” the Austrian rubber manufacturer announced 17 Nov.
Group revenue fell 6.4% to €647.6 million in the first three quarters of 2016 with earnings (EBITDA) down by 4.2% at €72.2 million. EBIT dropped by 13.5% at €46.7 million.
Despite negative effects of high price pressure, Sepmerit said, the Industrial Sector increased sales volumes and gained market share.
“We were confronted with declining demand and high price pressure above all in the Industrial Sector, especially in the Sempertrans segment,” said CEO Thomas Fahnemann in a statement.
According to Fahnemann, as part of Semperit’s globalisation strategy, the company succeeded in entering the US market for window and door profiles in its Semperform segment.
“This way we developed significantly better than the market in the Industrial Sector and therefore were able to narrow down the negative effects from the medical business,” explained Fahnemann.
Medical Sector, Sempermed, was burdened by high margin pressure and exceptional factors, said the Semperit statement.
With what it described as unsatisfying price situation in the global glove market and “the persisting burdening influence” on the cooperation with the joint venture partner in Thailand, Sempermed will now focus on the core markets Europe and North America.