SIMONA Group in Q1 2014: Growth in revenue – Earnings need boost
Financial Press Releases
Kirn. The SIMONA Group is satisfied to some extent with the direction taken by revenue in the first quarter of 2014. Sales revenue was propelled forward by 11.6 per cent year on year to €77.1 million (prev. year: €69.1 million). Acquired in January 2014, Laminations Inc., Archbald, PA, USA, has been included in the consolidated figures for the first time.
The Group recorded slight gains in its core market, Europe. It also saw a marginal improvement in revenue and sales volumes in Asia.
In the first quarter, SIMONA benefited from slightly more favourable market conditions in terms of investment spending directed at machinery and equipment. The product category comprising finished and semi-finished parts saw a significant increase in revenue relating to sheets made of PE and PVC. Business centred around fluoropolymer sheets used in high-end applications also generated some forward momentum. The product area encompassing pipes and fittings recorded revenue growth in almost all categories.
The acquisition of Laminations was financed by company funds. Beyond this, there were no significant changes to the financial situation of the SIMONA Group compared to the year-end 2013.
In the first quarter of 2014, the Group generated EBIT of €1.7 million (prev. year: €2.0 million), with an EBIT margin of 2.2 per cent (prev. year: 2.9 per cent). Earnings were diluted by non-recurring costs relating to the acquisition of Laminations and by the effects of foreign exchange rates.
For the full 2014 financial year, the SIMONA Group is targeting revenue in excess of €300 million and EBIT of more than €10 million.