Semperit in the red as it starts major restructuring

Vienna, Austria – Prices of raw materials and an in-house strategic transformation initiative, a plant closure in France and impairments at its medical division have left Semperit Group in the red for the year 2017.

In a 16 March annual result statement, the Austrian rubber goods manufacturer said among the one-off effects, the restructuring measures had a €47-million negative impact on earnings.

Earnings (EBITDA) more than halved to €35.8 million in 2017, compared to €74.7 million the year before.

However, the company’s adjusted EBIT figures showed a loss of €0.8 million, compared to a prior-year gain of €41.1 million. Adjusted earnings after tax, meanwhile, was €43.3 million in the negative, as opposed to a gain of €15.2 million the year before.

This, said Semperit, was due to higher financial expenses and significantly increased tax expenses.

“We are extremely unsatisfied with the earnings development in the past financial year and see a drastic need for action,” said Martin Füllenbach, chairman of the management board of Semperit AG Holding.

Therefore, he went on to say, the company initiated restructuring measures at the beginning of 2018 that primarily aim at going back to adequate returns.

Füllenbach said the measures were “already bearing fruit”, with improvement potentials identified.

“Optimisation of the operational business processes will play an essential role, because here we have spotted positive effects in a medium double-digit million range,” he added.

As part of the process, the Vienna-based company will aim to reduce complexity in its organisation.