Semperit reports growth amid restructuring efforts

Vienna – Austrian rubber engineering group Semperit AG Holding has reported growth in the first half of 2018 despite a decline in revenue and amid operational restructuring.

In a 23 Aug financial report, the Vienna-based company said earnings (EBITDA adjusted for negative one-off effects) increased by 45.3% year-on-year to €32.7 million in the first half of the year.

This is while total revenue fell 2.8% to €448.5 million during the period.

The business development, said Semperit, was characterised by continuous global growth dynamics and favourable economic conditions in the first half of 2018.

Commenting on the results, Semperit chairman Martin Füllenbach said the company had intensified its restructuring and transformation programme in the past months.

“A consolidated view on the industrial sector shows that the increasingly visible success of measures already taken confirms our course. Here, the most visible results are the already completed closings of plants in France and China as well as the currently ongoing shutdown and sales process at two more sites in Germany and Italy,” said Füllenbach.

As part of the restructuring measures, said Semperit, the Semperform site in Dalheim, Germany, is currently being integrated into another German location in Hückelhoven.

Additionally, the sale of Semperflex production site in Roiter, Italy is being examined.

The medical sector, said the chairman is currently Semperit’s “most demanding challenge”, with the company working on the area with “utmost concentration and focus.”

Semperit recorded a decline in sales and volumes in its medical sector and in the Sempertrans conveyor belts business.

However, Semperflex hose production and Semperform construction materials performed well in global sales and achieved an increase in revenue.

In terms of sales, Semperit’s industrial segment, including Semperflex, Sempertrans and Semperform, posted a 4.0% increase to €291.5 million in the first half of the year, compared to the year before.

Revenues in Semperflex and Semperform increased. In contrast, revenue at Sempertrans declined due to a shift of the product mix towards high-margin products as well as the shutdown of the plant in France and low production in China in the first half of 2018.

The largest share of the revenue increase was attributable to the Semperflex segment. Adjusted EBITDA for the segment improved by 26.0% to €41.8 million compared with the previous year.