Kirn, 26 April 2018. The SIMONA Group met its growth targets for the 2017 financial year. On the back of a positive performance in all regions, revenue increased by 7.5 per cent to €394.1 million. Thus, the Group managed to achieve the upper figure of its target range of €385-395 million. Due to currency effects, EBIT fell to €26.5 million (prev. year: €30.2 million). Despite this situation, the plastics processing company is satisfied with the direction taken by earnings, as SIMONA was able to improve at an operational level. The EBIT margin stood at 6.7 per cent, compared to 8.2 per cent for the same period a year ago. With revenue remaining stable, gross profit improved in the first quarter of 2018 and the EBIT margin for this period was 8.5 per cent. At the same time, however, economic risks have become more pronounced worldwide.

"Fiscal 2017 proved to be another good year for the SIMONA Group. This was attributable primarily to sustained buoyancy in the United States, strong growth in Asia and a good development of the industrial products market in Europe. As regards the Group's strategic realignment, our focus was on enhancing our production technology, expanding our portfolio of materials and positioning ourselves effectively in the area of pipes and fittings," says Wolfgang Moyses, CEO of SIMONA AG.

The SIMONA Group recorded growth in all sales regions during 2017. In Europe, SIMONA benefited from solid business development in the product category covering semi-finished products and saw revenue expand by 4.6 per cent to €269.2 million*. At €101.2 million, revenue generated in Germany was comparable to that recorded in the previous year. Revenue growth was significant in Spain, Italy and the United Kingdom. Eastern Europe also developed well, driven by dynamic business in the second half of the year. In the United States, sales revenue rose by 5.2 per cent to €94.7 million*. SIMONA was particularly encouraged by its business performance in Asia, the strongest growing region in 2017. Sales revenue surged by 56 per cent to €30.2 million*. The introduction of a new organisational structure, together with broader sales activities, started to bear fruit in the financial year just ended.

Both the Semi-Finished and Finished Products division and the Pipes and Fittings division recorded revenue growth in 2017. SIMONA extended its market position with regard to semi-finished and finished parts supplied to the chemical process industry, which translated into a good performance for sheets and solid rods made of PE and PP. Business also proved buoyant in the area of compact PVC sheets, particularly due to a dynamic aviation market. Business in the market for PVC foam sheets, which is driven mainly by price considerations, fell slightly short of the strong levels recorded in the previous year. In total, Finished and Semi-Finished Products generated sales revenue of €313.8 million (prev. year: €289.8 million). This represents a year-on-year increase of 8.3 per cent.

Business relating to the Pipes and Fittings division also expanded, albeit at a rate that was below target. The Group achieved growth in the market for industrial applications, while business within the area of civil engineering and lignite processing was adversely affected by a lack of projects in this field. Sales revenue attributable to the Pipes and Fittings division rose by 4.4 per cent to €80.3 million (prev. year: €76.9 million).

The SIMONA Group is satisfied with its earnings performance. Earnings before interest and taxes (EBIT) amounted to €26.5 million (prev. year: €30.2 million). This lies within the guidance range of €25-30 million. "We made further progress at an operational level. Negative currency effects of almost €6 million proved an obstacle to achieving higher earnings, particularly in Europe. Profitability in the United States, which had already been good, were raised further. In Asia, earnings before interest and taxes were well within positive territory," says Wolfgang Moyses.

The SIMONA Group's revenue target for 2018 has been set at €405-410 million, while the guidance figure for the EBIT margin is 7-9 per cent. "We want to take advantage of the favourable economic climate in order to pursue growth and take profitability to the next level. The majority of target markets served by SIMONA are developing well, although risks are becoming more evident. The slightly subdued pace of revenue growth in the first quarter of 2018 would appear to corroborate this assessment. Embracing a new strategy for Pipes and Fittings, we are looking to expand revenue and maintain a solid level of profitability in this division. In Asia, we want to use last year's dynamic pace of growth as a springboard, the focus being on the burgeoning premium market for safety- and eco-specific applications in the field of plastics. In the United States, meanwhile, the chances of defending our strong position within the expansive aviation market are considered to be good. The field of Industrial Products also offers further potential, which we will be looking to leverage, among other things, by expanding our product portfolio of high-performance plastics," says Moyses.

In the first quarter of 2018 sales revenue totalled €98.7 million, which is comparable to the prior-year figure (€98.9 million). With gross profit up year on year, EBIT stands at €8.4 million. This, too, is similar to the figure recorded a year ago, despite negative currency effects of €-0.8 million. Our EBIT margin was 8.5 per cent.

* allocated according to place of registered office of revenue-generating business unit