Vienna – Despite slightly lower sales, Semperit Group notched up a 23.1% year-on-year increase in earnings (EBITDA) for the first three quarters of the year to €56.4 million.
With sales coming in 2.7% lower, at €652.2 million, margins picked up from 6.8% in the prior-year period to 8.6%. the Austrian rubber products manufacturer reported 21 Nov.
Revenue fell by 1.5% in the Industrial Sector and by 4.9% in the Medical Sector, the company also reported.
“We have taken a major step forward; our systematic restructuring and transformation programme is taking effect,” said Martin Füllenbach, chairman of Semperit AG Holding.
“The Medical Sector has also made a positive contribution to EBITDA for the second consecutive quarter, based on an increase in operating performance,” he pointed out.
Füllenbach, nevertheless, cautioned that the company’s medical products business remains under pressure due to “highly competitive” market conditions.
“Our relative competitive position has recently deteriorated significantly,” he stated. Against this background, we are examining strategic options for the Medical Sector.”
Semperit boss went on to observe that global economic trends and trade conflicts had led to uncertainty in many industries with regard to investment decisions.
Indeed, top-line comments in the Semperit release included the line: “Varying degrees of decline in order books per segment indicates recession.”
And, while pressures on raw material markets “continued to ease,” Füllenbach said Semperit “continues to observe intense competition for some materials.”
Industrial Sector businesses Semperflex and Semperform recorded slightly lower sales, while Sempertrans saw a higher decrease as it changed from a volume-based to a differentiated-product strategy.
“Profitability was consistently increased in the segments of the Industrial Sector due to positive effects of the initiatives from the restructuring and transformation programme,” reported Semperit.