SIMONA 2015: Revenue and Earnings Forecast Exceeded

Kirn, Germany, April 27, 2016 (Newswire.com) - ​​​​Overall, 2015 proved to be an encouraging financial year for the SIMONA Group. Revenue increased by 7.1 per cent to €360.3 million, thus exceeding the guidance range of €345-355 million. Germany and the United States were among the key growth drivers within this area. At €26.7 million, the EBIT forecast of €22-26 million was also exceeded. The EBIT margin was 7.4 per cent. The global plastics specialist also succeeded in improving its cash flow, ROCE and equity ratio in 2015. SIMONA has presented a more tentative outlook for 2016, with geopolitical risks, a lack of business confidence when it comes to capital expenditure in Europe, and dampened prospects for the world economy as a whole proving detrimental to forecasts.

"Expansion of our international business in the United States, a solid economic performance in Germany and the Reengineering programme in Europe were the key factors driving us forward this year," said Wolfgang Moyses, CEO/Chairman of the Management Board of SIMONA AG. "We succeeded in restructuring our Industrial Products division in the United States and expanded our business in the field of aviation. In Europe, meanwhile, we succeeded in raising efficiency levels even further and were able to extend our portfolio of materials with the help of our new Technology Centre," said Moyses.

"Expansion of our international business in the United States, a solid economic performance in Germany and the Reengineering programme in Europe were the key factors driving us forward this year," said Wolfgang Moyses, CEO/Chairman of the Management Board of SIMONA AG. "We succeeded in restructuring our Industrial Products division in the United States and expanded our business in the field of aviation. In Europe, meanwhile, we succeeded in raising efficiency levels even further and were able to extend our portfolio of materials with the help of our new Technology Centre," said Moyses.

Wolfgang Moyses, CEO/Chairman of the Management Board of SIMONA AG

The region comprising "Europe" (categorised according to revenue-generating business unit) saw sales revenue increase by 1.1 per cent to €261.3 million in total (prev. year: €258.5 million). Revenue growth in Germany was particularly strong at 8.3 per cent. Elsewhere, SIMONA also benefited from an upturn in the Spanish economy. Lower revenue in Russia was partially offset by more expansive sales in Poland and the Czech Republic. As a sales region, the "Americas" made the most significant contribution to growth within the Group. Here, revenue increased to €81.7 million (prev. year: €60.8 million). The Industrial Products division managed to recapture market share, while the Aviation business operated by the subsidiary Boltaron exceeded the ambitious targets that had been set for it. The region comprising "Asia and Pacific" saw stagnant revenues of €17.3 million, as a result of which this region fell short of its growth targets. Given the slowdown in the Chinese economy, market conditions proved challenging in the subsequent period.
Both divisions (semi-finished and finished parts as well as pipes and fittings) performed well in terms of revenue growth. Revenue from semi-finished and finished parts amounted to €276.9 million (prev. year: €259.5 million), which represents an increase of 6.7 per cent.

After a relatively slow start, business relating to pipes and fittings developed dynamically as the year progressed. Growth was driven mainly by project-related business and large-scale contracts, while exports within the Industrial Products division were weaker. In total, the product area encompassing pipes and fittings generated sales revenue of €83.4 million (prev. year: €77.1 million). This corresponds to growth of 8.3 per cent.

The SIMONA Group recorded a significant increase in earnings in the 2015 financial year. EBIT rose from €17.8 million to €26.7 million. This figure includes positive foreign exchange effects of €4.7 million. At 7.4 per cent, the EBIT margin of 5.5 per cent targeted by the Group was exceeded. At 12.1 per cent, ROCE (return on capital employed) was up on the prior-year figure (8.3 per cent) as well as the figure of 6-8 per cent originally forecast. "The changes to our sales and logistics structures translated into higher earnings contributions at the majority of our European subsidiaries. Our activities in the United States made a significant contribution to earnings," said Moyses.

SIMONA achieved important technological milestones in 2015. The new Technology Centre at the corporate headquarters in Kirn has paved the way for a more expansive portfolio of materials and opened up promising partnerships in the field of development. Two machines capable of processing high-temperature plastics went into operation. A product range featuring the high-performance plastic PFA was launched at the beginning of 2016.

The business climate in 2016 is likely to be challenging. SIMONA is expecting group revenues between €355 and 365 million and an EBIT between €18 and 22 million. In Western Europe, SIMONA will be looking to generate slight growth, while Eastern Europe is expected to produce stronger impetus for expansion. In the United States, the aim is to emulate the solid performance seen in 2015. Elsewhere, a sales campaign is to be launched in Asia. A new subsidiary is to be opened in India in 2016, the aim being to unlock the considerable potential of the Indian plastics market even more effectively than in the past.

In the first quarter, Group revenue rose by 1.5 per cent to €89.0 million. At €6.1 million (EBIT margin 6.8 per cent), EBIT was on the right track, albeit lower than in the previous year (€6.4 million / 7.3 per cent). While gross profit improved, staff and other expenses were higher. The negative effects of foreign currency translation were approx. €2 million in the first quarter.

SIMONA – Global Thermoplastic Solutions
SIMONA AG is one of the leading manufacturers of thermoplastic products, with production facilities and sales offices around the globe, as well as an acknowledged development partner within this field. The company's product portfolio includes semi-finished parts (sheets, rods, profiles, welding rods), pipes and fittings as well as finished parts. SIMONA employs approx. 1,300 people worldwide. The Group manufactures 35,000 products in Germany and abroad, offering best-in-class solutions tailored to a wide range of applications: in the chemical processing industry, in the water, energy and commodities supply sector as well as in the field of mobility, construction and environmental technology. Annual production exceeds 100,000 tonnes. SIMONA AG is a stock corporation listed in the General Standard. The company's registered office is in Kirn, Rhineland-Palatinate (Germany). For further information, please refer to www.simona.de.

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Source: SIMONA AG