Semperit AG earns record profits despite raw materials, rising dollar

Vienna - Semperit AG Holding said its consolidated net profit rose by 9.0 percent to €40.0 million while the earnings before tax (EBT) increased by 1.3 percent to €54.3 million and sales by 11.5 percent to €574.1 million. The group said these results mean it has improved the consolidated net profit for the 16th consecutive year, clearly indicating the sustainability of growth at Semperit.

Semperit said several different factors shaped the development of sales and profits in the financial year just ended. Supported by a generally positive economic environment in Europe, the Semperit Group enlarged its share of that market considerably. The group maintained its market share in the United States and continued to grow in all other markets around the globe.

The company statement said, "Rising raw material costs put a damper on profits. The price of rubber increased dramatically in the first half of the year but steadily declined thereafter. The prices for synthetic rubbers and other raw materials and for energy resources rose successively throughout the year, in some cases at double digit rates. This trend increased expenditure on materials accordingly and thus production costs as a whole. Another disadvantageous factor was the further devaluation of the US dollar against the euro, the Thai baht and other important currencies. This loss in value diminished profits in dollar markets."

Despite these concerns, Semperit has continued to invest in capacity and facilties, primarily in Asia. The company added a third examination glove factory at its site in Hat Yai, Thailand.

The hose unit, Semperflex added a new spiral hose line at its Hat Yai facility and created a new subsidiary Semperflex Shanghai, China. This unit completed the construction of an ultra-modern hose factory in 2006 and commenced mass production. This project was carried out in close cooperation with experts from the main plant in Wimpassing, Austria.

Shanghai Rubber & Plastic, China, shifted its handrail production to a new factory on the Semperit premises. In the course of the move, the company increased its capacity substantially and modernised the equipment.

This is an external link and should open in a new window. If the window does not appear, please check your pop-up blocking software. ERJ is not responsible for the content of external sites.

Press releasefrom Semperit