Oct 29, 2008

Interim Announcement within the seond half of financial year 2008

SIMONA Group increases revenues

The SIMONA Group managed to generate further momentum in sales revenue over the course of the first three quarters of 2008. Despite the significant decline in the global economy, sales revenues were expanded to EUR 236.9 million as at September 30, 2008. This corresponds to a year-on-year increase of 4.5 per cent. Having said this, annual comparability is limited due to the fact that Georg Fischer SIMONA Fluorpolymer Products GmbH was deconsolidated effective from January 1, 2008. Excluding the revenue contribution of Georg Fischer SIMONA Fluorpolymer Products GmbH, the year-on-year increase in revenue stood at 6.5 per cent.

Growth was driven by both the semi-finished products segment and the business segment responsible for the area of pipes and fittings. Within the area of semi-finished products, the SIMONA Group benefited from the still favourable business climate witnessed in the chemical and mechanical engineering industries and the focus on new applications, e.g. within the field of environmental technology. Revenues attributable to the pipes and fittings segment were also expanded. The company's North American subsidiary remains in the grips of a severe economic downturn in the US, but nevertheless managed to generate growth in revenue. In Asia, revenues generated during the reporting period ended September 30 grew significantly.

The Group's solid financial and cash-flow position continued to improve compared with the first half of 2008, buoyed by a further increase in cash resources.

Despite the latest fall in oil prices, the procurement costs associated with raw materials processed by SIMONA rose to an all-time high in the third quarter. The company expects to see a reduction in commodity prices for the fourth quarter, despite the fact that prices for some raw materials have not yet followed the downward trend of oil prices. 

Given the encroaching financial and economic crisis, any target that lies beyond last year's solid performance must be viewed as being ambitious. Having said that, achieving such a target is not considered impossible. However, success within this area will only be forthcoming if there are no other significant repercussions from the financial and economic crisis.

As at September 30, 2008, the SIMONA Group employed 1,253 people, compared with a workforce of 1,226 at the same period a year ago. The higher level of employment within the Group is attributable mainly to the new production facility in Litvinov/Czech Republic.
 
Kirn, 29 October 2008
The Management Board

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SIMONA AG

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