SURTECO AG presents new record result

SURTECO AG is the leading manufacturer of surface materials based on plastics and papers for technical applications in the international construction and furnishing industry. The company moved ahead in the market during the business year 2006. Sales increased by 2 percent to 403.2 million euros to advance beyond 400 million euros compared with previous figures for the first time. This success is all the more impressive because although the German furnishing industry is starting to recover after four years of negative growth, there are still no signs of a consistent upswing. Despite the increasing pressure in the market, SURTECO AG succeeded in increasing domestic sales – which represent 36 percent of total business – to 145.6 million euros (+ 2 percent). International business, which the group companies play a leading role in structuring as market leader, went up by 2 percent to 257.6 million euros. Slight glitches in North America and Asia were compensated by increases in the European core markets so that the proportion of international sales remained constant at 64 percent.

The Strategic Business Unit (SBU) Plastics includes all the companies in the Döllken Group. It achieved an increase in sales of 3 percent to 231.3 million euros. While foreign international markets grew by 5 %, sales in Germany remained at the level of the previous year on account of a strategic rationalization of the product portfolio in the do-it-yourself retail trade.

Although the market environment has become much more difficult as a result of increasing competition, most importantly in the area of pre-impregnated flat foils, SBU Paper succeeded in nearly matching the sales for the previous year with 171.9 million euros. In 2005, sales at the company fell back by 4 percent.

The preliminary Earnings Before Tax (EBT) amounted to 46.0 million euros at the SURTECO Group in 2006. This again represented the best result in the history of the company with an increase of 22 percent. The shareholders of SURTECO AG are to participate in the good result with an increase in dividend.

The Chairman of the Board of Management of SURTECO AG, Friedhelm Paefgen, anticipates moderate growth in sales for the current business year 2007, provided that the overall economic framework conditions remain unchanged. SURTECO AG should be in a position to again exceed the record result achieved for 2006.