SIMONA in the first three quarters 2009

Earnings in positive territory thanks to cost streamlining

11-Nov-2009 - Germany

The Simona Group recorded a substantial year-on-year fall in sales revenue in the first three quarters of 2009, generating €161.9 million in the period under review, compared to €236.9 million a year ago. This corresponds to a decline of 31.7 per cent. Business within the area of semi-finished plastics was again adversely affected by a severe reluctance on the part of chemical tank and equipment manufacturers to invest in new products. On a more positive note, however, the market saw demand stabilise at a low level from the beginning of the second half. Within the area of pipes and fittings, project business in particular recovered slightly in the period under review, thus prompting a modest increase in revenue within some segments. SIMONA continues to see considerable growth potential worldwide for polymer-based applications within the field of mobility, life sciences and environmental technology. Committed to achieving its ambitions for expansion in this area, the company has established a separate business unit targeted at these markets.

In the period under review, SIMONA continued to pursue measures – initiated towards the end of 2008 – aimed at reducing costs and unlocking efficiency gains. On the back of these efforts, the Group managed to achieve earnings that remained in positive territory during the first three quarters.

There were no significant changes to the company's financial position or cash flows in the first three quarters of 2009, with liquidity remaining solid at all times. The risks associated with the future course of business have not increased significantly compared to those outlined in the first-half report. The general downturn in the global economy appears to have come to a halt. Having said that, those markets that are of key importance to SIMONA are likely to face protracted stagnation. To varying extent, SIMONA will continue to apply its policy of short-time work at all sites until at least the end of 2009.

As regards the 2009 financial year as a whole, the SIMONA Group remains confident that achieving €200 million in revenues and - based on earnings performance to date - positive EBITDA is a realistic target.

Compared to the third quarter of 2008, the number of people employed within the Group fell by 27 to 1,233 as at 30 September 2009.

https://www.chemeurope.com/en/news/109269/simona-in-the-first-three-quarters-2009.html