SIMONA Group lifts revenue and earnings in first quarter of 2015
Financial Press Releases
Kirn. Revenue generated by the SIMONA Group rose by 13.1 per cent to €87.7 million in the first quarter of 2015 (previous year: €77.6 million). The year-on-year increase is attributable to the first-time consolidation of US-based Boltaron, a company acquired effective from 1 April 2014, as well as organic growth in Eastern Europe, the Asia-Pacific region and the United States. In Eastern Europe, expansive business in Poland and the Czech Republic in particular more than offset the downturn recorded in Russia and Ukraine. Revenue from sales in Central and Western Europe dipped slightly.
In the product area covering finished and semi-finished parts the Group saw an increase in revenue from extruded and pressed sheets, driven primarily by the consolidation of Boltaron. Revenue from pipes and fittings fell slightly.
The Group's financial position and cash flows remain solid.
Earnings were increased substantially. Underpinned in particular by an improved gross profit, EBIT rose to €6.4 million in the first quarter (Q1/2014: €1.7 million). The EBIT margin was 7.3 per cent (Q1/2014: 2.2 per cent). Foreign exchange gains (previous year: foreign exchange losses) and earnings contributed by Boltaron, which had not been included in the consolidated accounts for the first quarter of 2014, had a positive impact on overall earnings.
The dramatic increase in commodity prices and supply-side shortages, together with geopolitical risks, e.g. in Ukraine, and the as yet unresolved financial crisis in Europe have had a dampening effect on the company's outlook. The SIMONA Group is anticipating revenue of €340-350 million and EBIT of €15-20 million for the 2015 financial year.