Semperit eyes second half recovery after soft first quarter

Vienna – Semperit Group has reported a challenging first quarter with revenue down 13.8% year-on-year to €151.7 million and earnings (EBITDA) halved to €11.1 million.

The Austrian industrial group cited a "persistently difficult market environment" and a slowdown in customer orders as key reasons for the decline.

Furthermore, greater uncertainty was added to existing challenges by the tariff conflict initiated by the US.

“This led to further delays in our customers’ investment decisions and cautious ordering activity," said CEO Manfred Stanek.

Despite the weak start, the company said the order situation improved in March and April and exceeded the prior-year period.

In addition, cost-cutting efforts are continuing, and Semperit expects a recovery in the second half.

According to Stanek, infrastructure investment in Germany, increased EU defence spending and the reconstruction of Ukraine are expected to provide medium-term tailwinds.

Breaking down segment performance, Semperit Industrial Applications (SIA) division, which includes hoses and profiles, posted a revenue of €65.5 million, down 4.7% compared to the same period last year.

Segment earnings fell 17.4% to €11.3 million, with the margin down 2.6 points to 17.2%.

The Engineered Applications (SEA) division, comprising form, belting, and liquid silicone businesses, reported revenue of €86.2 million, down 19.7% year-on-year.

Segment earnings plunged 74.5% to €4 million, while the earnings margin dropped by 9.9 points to 4.6%.

Group inventory of own products rose €11 million, mainly due to seasonal factors.

Meanwhile, total expenses fell 1.0% to €154.6 million as cost-cutting measures continued.

Materials costs reached €76 million, slightly up from €74.8 million last year.

Personnel expenses dropped 2.0% year-on-year to €56.7 million, and other operating expenses fell 6.8% to €21.9 million, helped by lower freight charges and cuts in consulting, legal and audit services.