Kirn, August 27, 2008. During the first six months of 2008, the SIMONA Group managed to expand both revenue and earnings against the backdrop of relatively stable economic conditions. Sales revenue generated during this period stood at EUR 157.1 million, which corresponds to year-on-year growth of 4.1 per cent. At the same time, the plastics-processing company propelled EBIT by 40.4 per cent to EUR 13.2 million.

Revenue from domestic sales amounted to EUR 59.4 million, thus matching the high level achieved in the same period a year ago. In the region covering the "Rest of Europe and Africa" the company managed to lift sales revenue by three per cent to EUR 79.3 million. The sales region of "Asia, Americas and Australia" recorded a significant increase in revenue, up 27.9 per cent to EUR 22.0 million.

The company, which operates at a global level, is satisfied with its results for the first half. Despite the surge in commodity prices, SIMONA achieved a significant increase in earnings before interest and taxes (EBIT) during the period under review. At EUR 13.2 million, EBIT grew by 40.4 per cent compared with the first half-year of 2007. The EBIT margin grew considerably in the reporting period: at 8.4 per cent (previous year: 6.2 per cent), it lies within the medium-term target range of 7-10 per cent.

SIMONA increased its investments considerably in the first six months of 2008. As at June 30, 2008, a total of EUR 12.0 million (previous year: €5.4 million) was channelled into the expansion and modernisation of production plant. The majority of these investments were for the construction of new facilities in Litvinov, Czech Republic, and Jiangmen, China.
 
Compared with December 31, 2007, total assets increased by EUR 15.1 million to EUR 248.9 million, buoyed in particular by more expansive business, an increase in investments and the rise in cash resources as a result of stronger cash flow from operating activities.

The second half of the year is expected to produce a stronger economic headwind. Despite this, SIMONA remains confident that it can achieve its annual revenue target of EUR 315 million. "We have enhanced our product mix and are continuing to pursue our stringent programme of earnings improvement launched in 2007. Although the figures for the first half cannot be extrapolated for the purpose of determining annual results, we are confident that we can exceed last year's solid earnings performance," said Wolfgang Moyses, CEO of SIMONA AG.



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