SURTECO AG continues trend of records from the previous year

SURTECO AG again generated record figures last year with sales of € 403.2 (+ 2 %) and a pretax profit of € 46.0 (+ 23 %). This positive trend continued during the first quarter. Compared with the equivalent figure in the first quarter of 2006, consolidated sales went up by 1.3 % to € 107.6 million and the leading international specialist for surface technologies achieved a disproportionate increase in earnings. EBITDA increased by 7 % to € 20.9 million (19.5). Hence, the EBITDA margin went up from 18.4 % to 19.4 %. Earnings before tax (EBT) exceeded the equivalent year-earlier value by 10 % at € 14.4 million in the first quarter of 2007. Consolidated net income also rose in the same order. At € 9.0 million, it was € 0.9 million higher year-on-year.

SURTECO AG is among the leading suppliers to the construction and furnishing industry for printed decorative papers, decorative flat foils, edgebandings based on specialist technical papers and plastics, and a wide range of other plastic products. The group reported a rise in domestic sales from € 39.4 million to € 41.6 million (+ 6 %), whereas consolidated foreign sales remained virtually constant at € 66.0 million. However, the company only regards this development as a temporary snapshot because the key stimuli for growth continue to be expected from foreign markets, despite the slight upswing in the domestic economy which has also impacted positively on the German furniture industry.

This is particularly the case for the Strategic Business Unit Plastics which expanded sales in the first quarter of 2007 to € 61.8 million (60.4) which corresponds to an increase in excess of 2 %. At € 45.8 million, sales at the Strategic Business Unit Paper were at virtually the same level as the previous year.

SURTECO AG further optimized Group structure with the acquisition of French trading company SDCA S.A.S. (Angers) and completion of the takeover of Italian company Arbe s.r.l. (Martellago) in the first quarter. The primary aim was also to drive forward its positive development in foreign markets.

The gratifying performance of SURTECO AG during the first quarter is also reflected in the performance of the share which was quoted at a price of € 38.5 on 31 March and had therefore advanced by 18 % compared with the equivalent year-earlier quarter in 2006. SURTECO AG recently also increased the Group’s free float from 19.9 % to 23.7 % in order to expand the opportunities offered by the capital market. This move takes the company closer to its aim of obtaining a listing for the SURTECO share in the SDAX index.