Semperit earnings up as turnaround continues

Vienna – Semperit AG has reported a 4.6% year-on-year rise in earnings (EBITDA) to €16.5 million, on revenues 3.6% lower at €213 million in the first quarter of its fiscal year, started 1 April.

The rubber products maker registered a slight increase in sales within its industrial sector – which includes the Sempertrans conveyor belt manufacturing, Semperform construction materials and Semperflex hose production.

Segment revenue was up 0.4% at €141 million, while earnings improved 30.7% to €24.5 million, the Austrian group reported 28 May.

Semperit linked the growth in profitability to its ongoing restructuring programme, which was launched at the beginning of 2018.

Medical segment Sempermed – which produces goods for the medical sector, including latex gloves – reported a 10.7% decline in sales at €71.5 million.

In addition to lower sales volumes for natural latex gloves, the unit also faced “strong competitive and price pressures”, particularly in North America, during the period.

The segment registered negative earnings of €900,000 for the period, down from a profit of €1.4 million the year before.

After a turnaround within its industrial sector, Semperit announced in March that it is now focused on restructuring its medical segment.

According to the company, measures taken in the process have already started showing “a positive impact” within Sempermed.

“We have increased our profitability for the fifth consecutive quarter now and are very satisfied with the start of 2019,” chairman Martin Fuellenbach said of Semperit group-wide performance.

This, he added, was achieved growth despite macroeconomic and global political uncertainties and continued pressure on raw materials costs.