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EANS-Adhoc: Semperit AG Holding / Satisfactory Business Development in Q1-3 2014 despite Difficult Economic Environment (with photo)

Geschrieben am 18-11-2014

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ad-hoc disclosure transmitted by euro adhoc with the aim of a Europe-wide
distribution. The issuer is solely responsible for the content of this
announcement.
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Financial Figures/Balance Sheet/quarterly report
18.11.2014

- Revenue up 2.0% to EUR 698.3 million
- Largely unchanged earnings development with respect to EBITDA and EBIT
- Good order situation in spite of the weak economy
- Stable financial year 2014 expected

Vienna, November 18, 2014 - The publicly listed Semperit Group showed a
satisfactory revenue and earnings development in the first three quarters of
2014. Revenue rose 2.0% year-on-year to EUR 698.3 million from EUR 684.4 million
in the prior-year period. Both the Medical and Industrial Sectors contributed to
growth based on strong sales performances and higher sales volumes. This more
than compensated for the decrease in selling price levels caused by the drop in
raw material prices. Double-digit growth was achieved in the Medical Sector,
whereas the more cyclically-dependent Industrial Sector further increased its
revenue against the backdrop of a restrained market development.

For the most part, Semperit generated stable earnings in a challenging market
environment. In particular, the resolute implementation of strategic raw
material management, stringent cost discipline and efficiency improvements
resulting from good capacity utilisation had a positive effect. In contrast, the
growth-related increase in personnel and slightly increased other operating
expenses negatively impacted earnings. The Group's consolidated EBITDA of EUR
101.3 million was largely stable in comparison to EUR 102.0 million achieved in
the previous year. EBIT declined to EUR 66.7 million, a drop of 3.2% from the
record nine-month figure of EUR 69.0 million achieved in Q1-3 2013. The EBITDA
margin of 14.5% (Q1-3 2013: 14.9%) and the EBIT margin of 9.6% (Q1-3 2013:
10.1%) remained at a solid level. Semperit achieved a net result (earnings after
tax) of EUR 39.6 million, which declined from the comparable figure of EUR 44.5
million in the first three quarters of 2013 due to the lower EBIT and higher
financial expenses.

"We succeeded in growing organically in the first nine months
although we faced stiff headwinds in cyclically-dependent areas. This
growth can be attributed to a very strong sales performance in all
segments and regions. The order situation in the months ahead
continues to be good because we are continually attracting new
customers and further expanding business with our existing ones. All
in all we expect a satisfactory 2014 financial year, although we have
already perceived a slowdown in the global economy", says Semperit
CEO Thomas Fahnemann in commenting on the current business
development.

Semperit generated substantial sales increases in the third quarter
of 2014 in contrast to strong negative price effects related to the
considerably lower raw material prices. Third-quarter revenue was up
slightly to EUR 234.0 million from EUR 233.0 million in the previous
year. EBITDA fell by 10.3% to EUR 32.5 million, and EBIT was down
18.8% to EUR 20.5 million. In spite of these declines, profitability
remained still satisfactory, as reflected by the EBITDA margin of
13.9% and the EBIT margin of 8.8%.

Semperit boasted a solid capital base at the reporting date of
September 30, 2014. The equity ratio remained at a consistently high
level of 49.6% compared to 48.3% as per December 31, 2013. Cash and
cash equivalents amounted to EUR 163.2 million, down from EUR 182.6
million at the end of 2013. "We still have a high level of liquidity
despite distributing a higher dividend and implementing an extensive
investment program. We generated a cash flow from operating
activities (gross cash flow) of EUR 83,4 million in the first nine
months of the year, which underlines the continued cash-generating
strength of our business operations", explains Semperit CFO Johannes
Schmidt-Schultes.

Medical Sector: Higher sales and revenue In the Medical Sector (the
Sempermed segment), the intensified sales activities resulted in a
considerable rise in sales volumes. Therefore, the ongoing negative
price effects caused by the lower raw material prices could be
offset. Demand for examination gloves was strong. Sales in the
industrial and consumer goods sectors continued to develop
positively. In contrast, higher energy prices in Malaysia had an
adverse effect on the Medical Sector's performance. Capacity
utilisation remained high at all Sempermed production plants.

Revenue of the Medical Sector rose 0.9% in the first three quarters
of 2014 to EUR 334.0 million. EBITDA was stable at EUR 43.9 million
compared to EUR 44.1 million in the previous year. The EBITDA margin
of 13.1% was also at the prior-year level (Q1-3 2013: 13.3%).

Industrial Sector: Strong development in spite of economic slowdown
The Industrial Sector (the Semperflex, Sempertrans and Semperform
segments) showed a positive development. All three segments once
again increased sales volumes due to their strong sales activities.

In the Semperflex segment, sales successes enabled a very good
capacity utilisation of production plants and a substantial rise in
revenue and earnings. The hydraulic hose business increased again
delivery shares in Europe and the USA, but the situation in Asia
remains difficult. The Sempertrans segment achieved volume growth as
well. However, raw material price effects led to a decline in revenue
and earnings. Almost all business units in the Semperform segment
generated volume increases.

Revenue of the Industrial Sector climbed 3.1% in the first three
quarters of 2014 to EUR 364.3 million. EBITDA was up 1.9% to EUR 72.0
million, corresponding to a largely unchanged excellent EBITDA margin
of 19.8% compared to 20.0% in the prior-year period. All three
segments generated double-digit EBIT margins.

Outlook 2014 and multi-year targets The Semperit Group expects a
largely stable order situation for the rest of 2014 and a
satisfactory performance in both revenue and earnings compared to
2013. The slowdown of the global economy along with geopolitical
crises has led to a restrained market and demand development in
cyclically-dependent business areas. Whereas the North American
market continues to develop positively, a considerable weakening of
demand is perceptible in Europe. There is a lack of growth impetus
throughout Asia.

The Medical Sector has a growth dynamic that is largely independent
from the general trend in the economy. The Sempermed segment
continues to focus on improving efficiency as well as targeting new
customer segments. The Semperit Group anticipates that global demand
for examination and protective gloves will steadily grow. In order to
take advantage of this market growth, Sempermed is expanding its
production capacity at its plant in Kamunting, Malaysia. A total of
about EUR 50 million will be invested in the construction of a new
glove facility during the period 2014 to 2016.

The order pipeline in the Industrial Sector is well filled for the
coming months despite the current weak economic situation. However, a
further economic slowdown would likely depress demand of some
business units. Semperit is counteracting the weaker market
development by intensifying its sales and marketing activities in
order to gain market shares.

In order to continue its long-term growth, the Semperit Group is
implementing an extensive investment programme in its Industrial
Sector. As a result, the group is currently expanding its
manufacturing capacities for hydraulic and industrial hoses in Odry,
Czech Republic, for conveyor belts at its plant in Belchatów, Poland,
for handrails in Shanghai, China and for profiles in Wimpassing,
Austria. These additional capacities will be available step by step
in the course of 2015 and 2016.

For the year 2014 the group expects to invest more than EUR 60
million (CAPEX), compared to EUR 49.7 million in 2013. Of this
amount, around EUR 25 million is intended for the maintenance of
existing facilities.

Semperit reaffirms its previous growth targets, namely to achieve
double-digit revenue growth on average in the years from 2010 to 2015
inclusive. It still aims to achieve an EBITDA margin of between 12%
and 15% and an EBIT margin of between 8% and 11%.

The report on the first three quarters of 2014 is available for
download at: http://www.semperitgroup.com/en/ir/reports-and-presentat
ions/interim-reports/

About Semperit The publicly listed company Semperit AG Holding is an
internationally-oriented group that develops, produces, and sells in
more than 100 countries highly specialised rubber and plastic
products 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
long-standing Austrian company, which was founded in 1824, are
located in Vienna, and the global R & D centre is in Wimpassing,
Lower Austria. The Semperit Group employs about 11,600 people
worldwide, including close to 9,000 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, and America. In 2013 the group
generated sales of EUR 906 million and an EBITDA of EUR 133 million.

Pictures with Announcement:
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http://resources.euroadhoc.com/us/CX8IGRJy
http://resources.euroadhoc.com/us/GNbphKhs

Further inquiry note:
Martina Büchele
Head of Group Communications
Tel.: +43 676 8715 8621
martina.buechele@semperitgroup.com
www.semperitgroup.com

Stefan Marin
Investor Relations
Tel.: +43 676 8715 8210
stefan.marin@semperitgroup.com

end of announcement euro adhoc
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Pictures with Announcement:
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http://resources.euroadhoc.com/us/CX8IGRJy
http://resources.euroadhoc.com/us/GNbphKhs


issuer: Semperit AG Holding
Modecenterstrasse 22
A-1030 Wien
phone: +43 1 79 777-210
FAX: +43 1 79 777-602
mail: investor@semperitgroup.com
WWW: www.semperitgroup.com
sector: Synthetics & Plastics
ISIN: AT0000785555
indexes: WBI, ATX Prime, ViDX, Prime Market, ATX Global Players
stockmarkets: official market: Wien
language: English


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