May 4, 2011
Press Release SIMONA AG's Report 2010
SIMONA 2010: Strong revenue growth
Group revenue up by more than 24 per cent – Programme of international expansion bears
fruit – Earnings within budget but below expectations
Kirn, 4 May 2011. The SIMONA Group recorded a positive performance in terms of both revenues and sales volumes in 2010. Having experienced a severe slump in the financial year 2009, the most dramatic since SIMONA's inception, the Group managed to increase its revenue significantly in all sales regions and product groups in 2010. Earnings were within the target range, but remained below expectations given the strong upturn in revenue. Group revenue rose markedly to €267.4 million (2009: €215.1 million). Pretax profit totalled €10.5 million (2009: €7.1 million). The plastics-processing company has targeted profitable growth as its key priority for 2011. It aims to achieve Group revenue of €290 million and pre-tax profit of €15 million.
The positive performance with regard to both revenue and sales volumes in the 2010 financial year was driven in particular by the considerable expansion of investment spending within the chemical and mechanical engineering industries, an important sales market for the company. The dynamic upturn seen within these industries' key export markets in Asia had a stimulating effect on capital expenditure. "After a sluggish start to the year, we recorded a sudden surge in demand in March 2010. Order intake and revenue subsequently remained at a high level," said Wolfgang Moyses, CEO/Chairman of the Management Board of SIMONA AG. The increase in revenue to €267.4 million represents year-on-year growth of 24.3 per cent.
Buoyed in particular by more expansive capital expenditure on machinery and equipment, sales revenue in Germany was propelled upwards by 18.4 per cent to €90.6 million (2009: €76.5 million). In Europe and Africa, sales revenue grew by 15.0 per cent to €132.7 million (2009: €115.4 million). On the back of dynamic business in Asia, sales revenue in the region of Asia, America & Australia surged by 82.9 per cent to €44.5 million (2009: €24.3 million). This region accounted for 16.6 per cent of total revenue, up from 11.2 per cent a year ago. "Our commitment to international expansion is bearing fruit. We are determined to generate above-average growth in the emerging markets, and we had demonstrable success achieving this target in 2010. Our new plant in China, which was opened in April 2010, represents an important step forward when it comes to generating further growth," said Wolfgang Moyses.
Within the area of semi-finished products, the Group managed to lift its revenues by 31.6 per cent to €196.8 million. Within this context, sales volumes of PE and PP sheets rose significantly. In parallel, finished parts and plastic sheets destined for the photovoltaic industry developed well, whereas business in the area of PVC sheets was more subdued. In the area of pipes and fittings, the Group recorded revenue growth of 7.8 per cent to €70.6 million in total.
Procurement costs for raw materials used by the Group rose dramatically in 2010. At 49 per cent, the cost of materials rose at a more pronounced rate than revenue. In the wake of economic recovery, pre-tax profit improved by €3.4 million to €10.5 million and was thus within the Group's target range. However, given the positive trend in terms of sales volumes and revenue, earnings performance remained below expectations.
SIMONA anticipates that orders will remain stable over the course of the financial year 2011. In the first quarter of 2011, sales revenue amounted to €76.9 million, while pre-tax profit stood at €5.4 million. "In terms of revenue, March 2011 proved to be the most buoyant month in the history of SIMONA. In view of the solid performance of Germany's export business and the considerable potential with regard to capital expenditure on machinery and equipment in the target markets of chemical and mechanical engineering, we are confident that we can lift Group revenue to €290 million in 2011. Within this context, our main focus will be on profitable growth. We plan to achieve consolidated pre-tax profit of €15 million," said Moyses.
SIMONA aims to generate Group revenue of €500 million by 2014 and emerge as one of the world's leading suppliers of extruded semi-finished thermoplastics and related products for safety-critical and eco-specific applications. "Our products already made a tangible contribution when it comes to addressing key challenges facing society as a whole in the area of utilities, energy and environmental technology as well as mobility. In embracing the new global strategy of "safety-critical and eco-specific solutions", we aim to foster this trend and chart a clear course for the future,"said Moyses.
To the financial reports»
Kirn, 4 May 2011. The SIMONA Group recorded a positive performance in terms of both revenues and sales volumes in 2010. Having experienced a severe slump in the financial year 2009, the most dramatic since SIMONA's inception, the Group managed to increase its revenue significantly in all sales regions and product groups in 2010. Earnings were within the target range, but remained below expectations given the strong upturn in revenue. Group revenue rose markedly to €267.4 million (2009: €215.1 million). Pretax profit totalled €10.5 million (2009: €7.1 million). The plastics-processing company has targeted profitable growth as its key priority for 2011. It aims to achieve Group revenue of €290 million and pre-tax profit of €15 million.
The positive performance with regard to both revenue and sales volumes in the 2010 financial year was driven in particular by the considerable expansion of investment spending within the chemical and mechanical engineering industries, an important sales market for the company. The dynamic upturn seen within these industries' key export markets in Asia had a stimulating effect on capital expenditure. "After a sluggish start to the year, we recorded a sudden surge in demand in March 2010. Order intake and revenue subsequently remained at a high level," said Wolfgang Moyses, CEO/Chairman of the Management Board of SIMONA AG. The increase in revenue to €267.4 million represents year-on-year growth of 24.3 per cent.
Buoyed in particular by more expansive capital expenditure on machinery and equipment, sales revenue in Germany was propelled upwards by 18.4 per cent to €90.6 million (2009: €76.5 million). In Europe and Africa, sales revenue grew by 15.0 per cent to €132.7 million (2009: €115.4 million). On the back of dynamic business in Asia, sales revenue in the region of Asia, America & Australia surged by 82.9 per cent to €44.5 million (2009: €24.3 million). This region accounted for 16.6 per cent of total revenue, up from 11.2 per cent a year ago. "Our commitment to international expansion is bearing fruit. We are determined to generate above-average growth in the emerging markets, and we had demonstrable success achieving this target in 2010. Our new plant in China, which was opened in April 2010, represents an important step forward when it comes to generating further growth," said Wolfgang Moyses.
Within the area of semi-finished products, the Group managed to lift its revenues by 31.6 per cent to €196.8 million. Within this context, sales volumes of PE and PP sheets rose significantly. In parallel, finished parts and plastic sheets destined for the photovoltaic industry developed well, whereas business in the area of PVC sheets was more subdued. In the area of pipes and fittings, the Group recorded revenue growth of 7.8 per cent to €70.6 million in total.
Procurement costs for raw materials used by the Group rose dramatically in 2010. At 49 per cent, the cost of materials rose at a more pronounced rate than revenue. In the wake of economic recovery, pre-tax profit improved by €3.4 million to €10.5 million and was thus within the Group's target range. However, given the positive trend in terms of sales volumes and revenue, earnings performance remained below expectations.
SIMONA anticipates that orders will remain stable over the course of the financial year 2011. In the first quarter of 2011, sales revenue amounted to €76.9 million, while pre-tax profit stood at €5.4 million. "In terms of revenue, March 2011 proved to be the most buoyant month in the history of SIMONA. In view of the solid performance of Germany's export business and the considerable potential with regard to capital expenditure on machinery and equipment in the target markets of chemical and mechanical engineering, we are confident that we can lift Group revenue to €290 million in 2011. Within this context, our main focus will be on profitable growth. We plan to achieve consolidated pre-tax profit of €15 million," said Moyses.
SIMONA aims to generate Group revenue of €500 million by 2014 and emerge as one of the world's leading suppliers of extruded semi-finished thermoplastics and related products for safety-critical and eco-specific applications. "Our products already made a tangible contribution when it comes to addressing key challenges facing society as a whole in the area of utilities, energy and environmental technology as well as mobility. In embracing the new global strategy of "safety-critical and eco-specific solutions", we aim to foster this trend and chart a clear course for the future,"said Moyses.
To the financial reports»
