EANS-News: Semperit AG Holding Very weak operating Q1 2017 result expected /
Semperit suspends outlook
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Earnings Forecast
The operating business development of the Semperit Group is expected to lead to
a very weak result in the first quarter of 2017. This was largely impacted by
the adverse trend of raw materials prices, which we managed to pass on to
customers only partially and with a time lag. The Management Board of Semperit
came today to the conclusion that out of this market development a considerable
negative impact on operating earnings compared with the previous year can also
be expected for the next months to come.
The adjusted EBIT for the 2017 financial year (without one-off effects from the
joint venture transaction) will therefore be significantly below the adjusted
EBIT of 2016 (EUR 41 million after deduction of the earnings contribution from
the Thai SSC / Siam Sempermed Corporation Ltd.).
CFO Frank Gumbinger: "Over the last few weeks, we have done a thorough analysis
of the current business development and the segments. During this process, we
have identified a number of construction sites, which are now on top of our
agenda."
In the course of the current revision of the planning process for 2017, the
Management Board has come to the conclusion today that the long-term earnings
outlook forthe Sempermed segment (Medical Sector) must be subjected to a
critical review compared with the previous assessment. This might result in a
significant impairment in the Sempermed segment.
While the Semperit Group continues to pursue organic growth in future, the focus
will be increasingly on enhancing profitability. A lot of work has to be done
for this, which includes measures to increase efficiency and a review of the IT
strategy. This might lead to significant one-off charges in the next quarters.
These developments have prompted the Management Board to change the outlook for
2017. Due to limited visibility and the number of issues mentioned above, the
outlook for 2017 has been suspended. Therefore, a specific guidance range cannot
be provided.
As communicated on 10 March 2017, Semperit is expecting unchanged significant
positive effects from the joint venture transaction, which will affect earnings
in the first quarter of 2017.Due to the high inflow of cash from the joint
venture transaction, net debt was reduced by more than EUR 150 million by the
end of March 2017 (compared with the end of December 2016). In addition, after
the closing of the joint venture transaction a dividend of EUR 0.70 per share
can also be proposed to the Annual General Meeting.
CFO Frank Gumbinger: "We would like to use the next few months to identify
further potentials to make the Group profitable on a sustainable basis. As soon
as there is better visibility after our current review we will inform about
further progress."
About Semperit
The publicly listed company Semperit AG Holding is an internationally-oriented
group that develops, produces, and sells highly specialised rubber and plastic
products in more than 100 countries for the medical and industrial sectors:
examination and surgical gloves, hydraulic and industrial hoses, conveyor belts,
escalator handrails, construction profiles, cable car rings, and products for
railway superstructures. The headquarters of this traditional Austrian company,
which was founded in 1824, are located in Vienna. The Semperit Group employs
around 7,000 people worldwide, including close to 3,900 in Asia and more than
800 in Austria (Vienna and production site in Wimpassing, Lower Austria). The
group has 22 manufacturing facilities worldwide and numerous sales offices in
Europe, Asia, Australia and America. In 2016, the group generated sales of EUR
852 million and EBITDA of EUR 78 million.
Further inquiry note:
Martina Büchele
Group Communications Manager
Tel.: +43 676 8715 8621
martina.buechele@semperitgroup.com
Stefan Marin
Head of Investor Relations
Tel.: +43 676 8715 8210
stefan.marin@semperitgroup.com
end of announcement euro adhoc
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company: Semperit AG Holding
Modecenterstrasse 22
A-1030 Wien
phone: +43 1 79 777-210
FAX: +43 1 79 777-602
WWW: www.semperitgroup.com
sector: Synthetics & Plastics
ISIN: AT0000785555
indexes: WBI, ATX Prime, ViDX, Prime Market, ATX GP
stockmarkets: official market: Wien
language: English