Apr 28, 2009
Press Release
Interim Announcement within the First Half of 2009
SIMONA also significantly affected by crisis
Kirn,
28 April 2009
The SIMONA Group felt the full force of the economic crisis during the first three months of the 2009 financial year, with revenue falling to EUR 53.0 million, down 31.7 per cent on the same quarter a year ago. The contraction of revenue was attributable chiefly to the severe decline in output and investment spending within Germany's mechanical engineering sector and chemical industry. Within this context, the two principal sales segments for semi-finished plastics used in chemical tank and equipment construction were heavily impacted by the significant fall in exports as well as tentative capital expenditure. Despite the visible decline in revenue, however, the Group managed to record positive earnings, a tribute to proactive cost-reduction measures implemented by SIMONA.
There were no significant changes to the company's financial position or cash flows in the first three months of 2009, with liquidity remaining solid at all times. Owing to substantial net cash from operating activities in fiscal 2008, together with a solid financial base, SIMONA has been able to establish a good vantage point from which to operate during the challenging 2009 financial year. Having said that, the risks associated with the future course of business have increased significantly. The global economy is facing one of the most severe recessions in its history, and at present, the future direction of business is impossible to predict. In order to cushion the decline in production output, SIMONA proposed short-time work as from March 1, 2009, and implemented its action plan to varying degrees at all German locations. Additionally, a far-reaching programme aimed at reducing costs was introduced.
The SIMONA Group anticipates a substantial decline in revenue for the 2009 financial year as a whole. A contraction of revenue to €200 million cannot be ruled out. However, SIMONA remains confident that it can achieve positive EBITDA as well as a positive cash contribution.
The number of employees rose by eight to 1,228 compared to the first quarter of 2008.
Kirn, April 2009
The Management Board
The SIMONA Group felt the full force of the economic crisis during the first three months of the 2009 financial year, with revenue falling to EUR 53.0 million, down 31.7 per cent on the same quarter a year ago. The contraction of revenue was attributable chiefly to the severe decline in output and investment spending within Germany's mechanical engineering sector and chemical industry. Within this context, the two principal sales segments for semi-finished plastics used in chemical tank and equipment construction were heavily impacted by the significant fall in exports as well as tentative capital expenditure. Despite the visible decline in revenue, however, the Group managed to record positive earnings, a tribute to proactive cost-reduction measures implemented by SIMONA.
There were no significant changes to the company's financial position or cash flows in the first three months of 2009, with liquidity remaining solid at all times. Owing to substantial net cash from operating activities in fiscal 2008, together with a solid financial base, SIMONA has been able to establish a good vantage point from which to operate during the challenging 2009 financial year. Having said that, the risks associated with the future course of business have increased significantly. The global economy is facing one of the most severe recessions in its history, and at present, the future direction of business is impossible to predict. In order to cushion the decline in production output, SIMONA proposed short-time work as from March 1, 2009, and implemented its action plan to varying degrees at all German locations. Additionally, a far-reaching programme aimed at reducing costs was introduced.
The SIMONA Group anticipates a substantial decline in revenue for the 2009 financial year as a whole. A contraction of revenue to €200 million cannot be ruled out. However, SIMONA remains confident that it can achieve positive EBITDA as well as a positive cash contribution.
The number of employees rose by eight to 1,228 compared to the first quarter of 2008.
Kirn, April 2009
The Management Board
