Kirn, 31 July 2019. The SIMONA Group again recorded substantial growth in the first half of 2019. Sales revenue expanded by 11 per cent to €227.5 million in the first six months (prev. year: €204.9 million). Growth was again fuelled by a solid performance in the United States. In Europe, dynamic business within the area of pipes and fittings contributed to moderate overall growth. Sales revenue remained stagnant in Asia after a weak first quarter. At €18.1 million, earnings before interest and taxes (EBIT) were slightly down on the previous year. At 8.0 per cent, the EBIT margin was at the upper end of the guidance range of 6-8 per cent.

SIMONA felt the impact of a more pronounced downturn in the global economy during the second quarter, with the overall rate of growth slowing as a result. Sales revenue totalled €116.5 million, up 9.7 per cent on the figure for the same quarter last year (€106.2 million). In the first quarter of 2019 growth had stood at 12.4 per cent.

The first half of the year as a whole was marked by strong growth in the United States. A solid performance in the aviation market and the first-time inclusion of SIMONA PMC, an extrusion company acquired in August 2018, helped to boost revenue from sales in North America by 36.9 per cent to €69.8 million. Thus, almost one-third of global Group revenue was generated in North America over the course of the first half. In Europe, business centred around semi-finished products was adversely affected by the waning economy, with the exception of Germany. Buoyed by a strong performance in the area of pipes and fittings, revenue from sales in Europe as a whole expanded by a modest 2.6 per cent to €142.3 million (prev. year: €138.7 million). Business in Asia was impacted by a sluggish first quarter. However, SIMONA managed to make up ground in this region during the second quarter. Overall, revenue from sales in Asia stagnated at €15.4 million in the first six months of the year (prev. year: €15.2 million).

First-quarter growth was driven by both product areas. The performance of Pipes and Fittings was encouraging. Benefiting from the Group's strategic realignment, coupled with a product offensive, this division managed to increase revenue by 16.9 per cent to €46.4 million in the first six months of the year (prev. year: €39.7 million). The product area covering Finished and Semi-Finished Parts recorded revenue of €181.1 million (prev. year: €165.2 million), which represents year-on-year growth of 9.6 per cent.

Operating profit, i.e. earnings before interest and taxes (EBIT), at Group level totalled €18.1 million in the first half of 2019, compared with €18.7 million in the previous year. The EBIT margin declined from 9.1 per cent in 2018 to 8.0 per cent in the reporting period. EBITDA amounted to €26.6 million (prev. year: €25.9 million).

"On the whole, we are satisfied with our earnings performance in the first six months. Our EBIT margin is at the upper end of our guidance range of 6-8 per cent for the financial year as a whole. However, the substantial contribution made by our US business stands in contrast to a downturn in earnings within our semi-finished products business in Europe. As part of an internal project, we are looking to improve the competitiveness of our Semi-Finished Products division by means of market expansion, structural changes at the production plants and a stronger focus on growing product areas. By contrast, we are highly satisfied with profitability levels in the Pipes and Fittings division during the first half," said Wolfgang Moyses, CEO SIMONA.

The outlook for the second half of the year is dampened by a more pronounced deterioration in global economic conditions. Risks and therefore also uncertainty among customers have increased. Given the increase in revenue recorded in the first half of the year, the SIMONA Group anticipates that it will be able to meet its guidance target of €435-450 million in annual Group revenue, as forecast in April, although revenue is expected to be less buoyant in the second half of the year due to seasonal factors. Against the backdrop of a significant slowdown in global economic growth and the prospect of a lower earnings contribution in the second half of the year, the projected EBIT margin of 6-8 per cent is ambitious but achievable.