Semperit earnings “significantly weaker than expected”

Vienna – Raw materials costs and operational issues will keep Semperit earnings below expectations in the second half of this year, the Austrian group’s board has concluded.

“Volatility of raw material prices as well as operational challenges, particularly in the Sempermed and Sempertrans segments,” Semperit said in a 9 Oct report.

Compared with first-half earnings – adjusted operational EBIT – of €6 million, the group “does not expect any significant improvement in the operational business for the third and fourth quarters of 2017 on the current basis.”

In response, the management board will initiate a “transformation process” based on the findings of a strategic study to be completed in the second quarter of 2018.

“Continuous and potentially new measures to increase profitability and to strengthen the balance sheet structure remain at the very top of the agenda of the management board,” said Semperit.

As a result, the company is considering further significant non-recurring charges in addition to already initiated measure will be in the coming quarters.

“Due to these developments, the outlook will remain suspended for the coming quarters,” the group statement concluded.