Semperit bounces back after restructuring measures

Vienna – Semperit AG has seen “significant improvement” in earnings for 2018, helped particularly by its industrial sector.

Total revenue remained flat for the year at €878.5 million, compared to €874 million registered in 2017, Semperit announced 22 March.

EBITDA adjusted for negative one-off effects (earnings) rose by 40.6% to €50.3 million, thanks to a major restructuring scheme launched at the beginning of 2018.

“Our intensified restructuring and transformation course has led to a significant improvement in operating earnings in the industrial sector,” said Semperit chairman Martin Füllenbach.

Overall, the industrial sector – which includes Semperflex, Sempertrans and Semperform – reported a 5.6% year-on-year increase in revenue to €567.0 million.

The improvements in the sector were mainly driven by an increase in the Sempertrans and Semperform segments. Conveyor systems unit Sempertrans recorded a decline during the year.

Earnings in the sector rose by 66.1% to €71.3 million, as a result of the company’s restructuring programme and new products.

Such products, Semperit said, included a new LPG hose for the automotive industry as well as new conveyor belts for underground mining in Australia, the US and Canada .

The Sempermed medical sector – which produces goods for the medical sector, including latex gloves – reported a 7.6% decline in sales.

Sector earnings fell to -€3.9 million from €1.8 million in 2017, due to “unsatisfactory operating performance” and increasing “competitive and price pressures, particularly in North America.”

The company also changed its strategy in the sale of gloves during the year, shifting the focus to own production instead of trade items.

The decline in the medical sector, said Füllenbach, “remains a drop of bitterness”, for the restructuring process.

“We are working on the urgently needed turnaround of Sempermed with utmost concentration,” he added.