DGAP-News: SURTECO GROUP SE: On course for full-year targets in 2019
DGAP-News: SURTECO GROUP SE / Key word(s): Half Year Results
SURTECO GROUP SE: On course for full-year targets in 2019
- Group sales for the 1st half year of 2019 at EUR 352.7 million below year-earlier value in line with expectations - EBIT reaches EUR 20.2 million
- US impregnating business sold successfully
- Targets for the entire year confirmed: stable sales of EUR 655 to 685 million and EBIT of EUR 38 to 40 million expected
Buttenwiesen, 14 August 2019 - SURTECO GROUP SE, holding company for leading national and international brands in surface technology, looks back on a robust performance in spite of sustained difficult economic framework conditions after the first six months. In line with expectations, Group sales from January to June amounted to EUR 352.7 million and they were below by around 3 % on the year-earlier level of EUR 365.2 million. EBIT (earnings before financial result and income tax) was influenced by higher depreciation and amortization owing to investments, but at EUR 20.2 million (H1 2018: EUR 23.5 million) it was also in line with expectations. After six months, SURTECO achieved consolidated net profit of EUR 12.7 million (H1 2018: EUR 15.1 million). SURTECO therefore confirms the all-year forecast for 2019, stable sales of between EUR 655 and 685 million (not including proportionate sales of EUR 15 million from the divested US impregnating business) and achieving a significantly higher Group EBIT between EUR 38 and 40 million.
"We confirm our annual targets for 2019 to relatively stable Group sales. The cost-efficiency measures are demonstrating an impact, so we stik to the EBIT forecast," commented Dr. Herbert Müller, the Chairman of the Management Board of SURTECO GROUP SE.
Varying development in the segments - US impregating business successfully sold
The three segments of SURTECO are continuing to undergo varying development. While Profiles benefitted from its broadly-based sector differentiation and achieved sales growth up from EUR 44.1 million to EUR 47.2 million, the Decoratives Segment at EUR 253.7 million (H1 2018: EUR 262.6 million) and Technicals at EUR 51.8 million (H1 2018: EUR 58.5 million) suffered from a weakening of the economic conditions and falling demand in the laminate and furniture industries. The segment EBIT showed a similar development to that evident in sales. Profiles posted an increase to EUR 5.0 million after EUR 4.7 million in the previous year, while Decoratives (EUR 17.3 million after EUR 19.2 million) and Technicals (EUR 1.1 million after EUR 3.1 million) were unable to achieve the year-earlier level. On 19 July 2019, the US impregnating business allocated to the Technicals Segment was sold. The operations had a projected annual sales volume of around EUR 33 million for 2019.
Free cash flow significantly positive for the first half of the year
The balance sheet total rose from EUR 844.5 million to EUR 869.6 million for the half year of 2019. In view of a slight increase in equity, the equity ratio at 41.1 % continued to remain at a robust level. Net financial debt increased slightly to EUR 204.6 million (31/12/2018: EUR 197.5 million) and the level of dept increased from 56 % to 57 %. Cash flow underwent gratifying development. Hence, cash flow from current business operations rose from EUR 14.7 million to EUR 33.9 million and free cash flow went up to EUR 16.4 million on 30 June 2019.
You can find the report on the first half-year of 2019 and other information about the SURTECO GROUP SE 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.
Important indicators of SURTECO GROUP SE (in EUR million)
(1) Difference to balance of segment earnings due to internal clearing
(2) Based on a number of shares amounting to 15,505,731
(3) Net debt / Equity
14.08.2019 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|
|EQS News ID:||856453|
|End of News||DGAP News Service|