The Semperit Group has thus improved its consolidated profit for the 17th consecutive year, underlining the sustainability of the company s business strategy.
Earnings before tax rose by 9.8% above the previous year s level, to EUR 59.6 million. This includes the unsatisfactory financial result amounting to minus EUR 4.3 million, which can be attributed to the massive crisis on international capital markets.
The positive business environment, particularly in Europe and Asia, served as the basis for the generally good level of orders throughout 2007. North America was the only market in which Semperit did not achieve any appreciable gains in market share, which is mainly related to the unstable economic situation and the depreciation of the US dollar. Moreover, the company was subject to currency translation losses resulting from the consolidation of its sales in euros. Price increases for raw materials, which were quite substantial for several types of rubber as well as for crude oil based chemicals and fillers, were offset by targeted procurement planning and increases in Semperit s selling prices.
All four divisions increased sales during the period under review. Despite a high share of its business carried out in US dollars, the Sempermed division reported a 4.4% increase in sales, to EUR 219.1 million. The main reason was the particularly favourable business development in Europe and the Middle East. Business in the Semperflex division was satisfactory in all product segments, which is mainly related to the favourable market environment in Europe. Sales of the Semperflex division climbed accordingly by 11.0%, to EUR 161.7 million. There was a slowdown in growth in the Semperform division compared to the previous year, with total sales rising by only 2.6%, to EUR 111.4 million. This can be primarily attributed to a decline in the division s OEM business for handrails and ski membranes, as well as a weakening in demand for cable car rings and seal profiles in the second half of the year. Nevertheless, the development of sales was satisfactory in all other product segments of the Semperform division. The high demand for conveyor belts manufactured by the Sempertrans division continued uninterruptedly. All production facilities operated at full capacity, and achieved good sales growth, particularly in their core markets. As a result, total sales of the Sempertrans division rose by 5.9%, to EUR 115.6 million.
DIVIDEND INCREASE PLANNED
The Management Board of Semperit AG Holding wants its shareholders to participate in the positive business development of the company. Therefore, it will once again propose a dividend increase to the upcoming General Meeting of Shareholders for the 2007 financial year.
OUTLOOK 2008
The Semperit Group expects to continue its growth path in the current 2008 financial year, based on efficiency improvements, rationalisation projects, the even quicker realisation of measures designed as a response to raw material price hikes, as well as the consistent implementation of investment projects.