Thursday, April 13, 2017
SURTECO SE – one of the world’s leading manufacturers of decorative surface materials and producer of technical extrusions (profiles) – in line with expectations succeeded in significantly improving its result in the business year 2016. Provisional figures for earnings before financial result and income tax (EBIT) went up by 31 % compared with the previous year to EUR 40.9 million. Earnings before income tax (EBT) also increased by 31 % to EUR 35.0 million. The two Strategic Business Units, Paper and Plastics, both contributed to this positive development. Key factors for this result were a high level of profitability and the scheduled significantly reduced one-off expenses arising from the concentration of German decorative printing activities. Although a new record was set for consolidated sales at EUR 639.8 million (2015: EUR 638.4 million), this still remains slightly below our own expectations, since the increase was primarily due to the initial sales contributions from the British Nenplas Group (SURTECO share: 85 %) taken over on 1 December 2016.
“On the earnings side, the measures we have taken to increase efficiency mean that we are entitled to be satisfied with the year 2016. Challenges on the raw materials side are beginning to emerge during the first few months of the current business year. Nevertheless, we expect to see a renewed improvement in earnings. However, this is subject to the currently very high level of cost of raw materials returning to a reasonable level over the course of the year, commented Dr. Herbert Müller, Chairman of the Board of Management of SURTECO SE, on development.
Outlook 2017: Significant turbulence on the raw materials market
SURTECO is anticipating modest increases in sales for the Group from the first-time full consolidation of the Nenplas Group in the business year 2017. The framework conditions are difficult on the earnings side due to significant price increases for the important raw materials ABS (acrylonitrile butadiene styrene) and titanium dioxide. SURTECO can offset these increases in the price of raw materials with the contribution to earnings from the Nenplas Group and a further rise in profitability. Earnings should therefore also increase in 2017.
Tags: EUR 40.9 million, expectations, Outlook 2017, producer of technical extrusions (profiles), surteco SE, world's leading manufacturerer of decorative panels. surface material
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