DGAP-News: SURTECO GROUP SE: Consolidated sales in 2018 at EUR 699 million slightly above previous year
DGAP-News: SURTECO GROUP SE / Key word(s): Preliminary Results
SURTECO GROUP SE: Consolidated sales in 2018 at EUR 699 million slightly above previous year
- EBIT at EUR 32.2 million, including one-off expenses for optimisation programm of EUR 6.1 million
- Increase in earnings expected for 2019
Buttenwiesen, 25 March 2019 - SURTECO GROUP SE, holding company for the leading national and international brands for surface technology, achieved and exceeded respectively the sales and earnings targets adjusted in October 2018 according to preliminary unaudited figures. The figures reported indicate that consolidated sales at EUR 699 million were not only slightly above the year-earlier figures (EUR 690 million), they were also above the last projected range of EUR 685 to EUR 695 million. On the basis of exchange rates at the year-earlier level, consolidated sales of approximately EUR 714 million would have been reported. Earnings before financial result and income tax (EBIT) were impacted negatively by one-off expenses amounting to a total of EUR 6.1 million in the reporting year for the optimisation programm announced in October 2018. As a result of this and primarily on account of the significantly increased cost of materials, an EBIT of EUR 32.2 million was achieved in 2018 (2017: EUR 44.7 million). EBIT adjusted by one-off expenses amounted to EUR 38.3 million. This is also situated within the scope of the last forecast at between EUR 37 and EUR 39 million. While the Business Unit Paper suffered under the declining demand from important customer sectors and fell significantly short of the targets defined by the Group itself, the Business Unit Plastics succeeded in achieving the expected increase in sales due to the consolidation of the Probos-Group for the full finance year. Since owing to exchange-rate conditions the financial result was significantly better than in the previous year, the fall in pre-tax profit to EUR 27.1 million (2017: EUR 33.5 million) was less than in the case of EBIT.
"2018 was significantly more challenging for SURTECO than originally anticipated at the beginning of the year. On account of the significantly declining demand as the year continued and the unexpected higher material costs, we were unable to achieve our original targets. We responded immediately and introduced measures to reduce costs already at the beginning of the second half-year. Following an increasing decline in demand, we launched an optimisation program in the third quarter to adjust our structures and personnel costs, which will have an effect on the 2019 financial year. The on-off expenses are included in the result for 2018." commented Dr. Herbert Müller, Chairman of the Board of Management of SURTECO GROUP SE, on future development.
Outlook for 2019: Increase in earnings in spite of greater challenges
SURTECO is not expecting an upturn in the relevant markets for the business year 2019 and there will consequently be no significant stimuli to generate organic growth. In view of the elimination of one-off expenses, the result is likely to exceed the EBIT adjusted by one-off expenses for the optimisation programm of about EUR 38 million in spite of increasingly chanllenging framework conditions.
From 2019 onwards, the management of the company and hence segment reporting will be based on the new Decoratives, Profiles and Technicals Business Units, which will replace the previous Paper and Plastics Business Units.
The publication of the annual financial statements and the Annual Report for 2018 is planned for 30 April 2019. You will find more information about the group on the Internet at www.surteco-group.com.
Profile of SURTECO
SURTECO GROUP SE with registered office in Buttenwiesen is a mid-sized holding company with international operations. The company listed on the stock exchange combines leading national and international brands for surface technology under one roof. The comprehensive product portfolio includes papers printed with decor designs, impregnated materials, release papers, decorative flat foils and edgebandings based on specialist technical papers and plastics. This portfolio is complemented by skirtings made of plastics, technical extrusions (profiles) for industry, and roller shutter systems.
More information on the company is available at: www.surteco-group.com
The shares in SURTECO GROUP SE are listed on the official market (Prime Standard) of the Frankfurt and Munich Stock Exchanges under the ticker symbol SUR and ISIN DE0005176903. They are also traded on the stock markets in Berlin, Düsseldorf and Stuttgart.
Cautionary note regarding forward-looking statements
This press release may contain statements of future forecasts or expectations and other forward-looking statements and involves known and unknown risks and uncertainties. There is therefore no guarantee for the statements and expectations expressed herein. The actual results and developments may differ substantially. The company assumes no obligation to update any forward-looking statements contained herein or to adapt such information to future results or developments.
25.03.2019 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
|Company:||SURTECO GROUP SE|
|Phone:||+49 (0)8274 99 88-0|
|Fax:||+49 (0)8274 99 88-5 05|
|Listed:||Regulated Market in Frankfurt (Prime Standard), Munich; Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Stuttgart, Tradegate Exchange|
|End of News||DGAP News Service|