Semperit AG Holding: Earnings increase in the first Quarter
Total revenue rose by 3.7% to EUR 152.4 million / EBT 16.1% up on the previous year at EUR 16.9 million
Revenue rose in comparison to the first quarter of the previous year by 3.7% to EUR 152.4 million. In spite of the continuing difficult market environment, earnings before tax (EBT) increased disproportionally by 16.1% to EUR 16.9 million. This development was largely attributable to good capacity utilisation and growth in the Sempermed division as well as to the revival in demand in the Semperflex division. Net profit for the period, at EUR 9.3 million showed a marked improvement over the comparable period of the previous year. The massive increase in raw material prices exhibit intense pressure on the margins and are forcing Semperit to adjust sales prices for customers.
PERFORMANCE OF THE DIVISIONS
The Sempermed division continued its positive development, improving revenue in the first quarter 2010 by 8.8% to EUR 73.3 million. Demand improved in the Semperflex division at the start of 2010 following an extremely difficult year in 2009, which led to an expansion of business by 11.6% to EUR 31.8 million. Revenue for the Semperform division in the first quarter was 6.4% below the previous year's figure of EUR 22.8 million at EUR 21.4 million, however individual regions and segments exhibited differing development.As a result of intense price competition, the Sempertrans division had to deal with a decline in revenue by EUR 8.1% to EUR 25.9 million.
Due to the continuing uncertainty of the economic environment, as well as the marked increase in raw material prices, it is still only possible to make limited forecasts for the future. On the basis of good market positioning and the company's competitive strength, the Semperit Group expects that the development of the results will be satisfactory for 2010 as a whole.