SURTECO SE has now responded to the sustained poor economic situation in the construction and furnishing sector and the current turbulence in the financial market. The company has corrected its corporate targets in line with the macroeconomic environment. SURTECO SE is among the leading international suppliers of surface materials based on plastics and papers for technical applications. Sales and earnings will fall short of the record figures for the previous year. In 2007, the Group reported sales amounting to € 414.5 million (+3 %) and EBT at € 46.6 million (+1 %) was above the year-earlier comparable figures for the fourth time in succession. SURTECO SE was still assuming moderate growth at the end of the first six months of 2008 and had geared the business for this year to the high earnings level of 2007.
Although the company was able to increase sales by 1 % to € 315.7 million after three quarters during the current business year as a result of the acquisition of Swedish company Gislaved Folie AB in September 2007, the negative development in the market and the resulting low utilization of capacity during the third quarter in particular necessitated adjustment of the defined targets. Sales of the Strategic Business Unit Paper at € 116.9 million were 8% below the year-earlier figure. Sales of the Strategic Business Unit Plastics increased by 7 % to € 198.8 million solely on the basis of the acquisition.
During recent weeks, SURTECO SE reacted to the ailing global markets – the export ratio remains unchanged at 66 % – and the negative impact of the crisis in the financial markets by intensifying all current cost-reduction programmes and rationalization measures in human resources. The company employed 2,220 employees across the Group on 30 September and cuts of 200 established posts are now being planned. Restructuring provisions amounting to € 4 million have already been formed and the operating result (EBITDA) was € 10.2 million (2007: € 17.4 million) in the third quarter of 2008. EBITDA for the nine-month financial statements at € 49.3 million fell short of the equivalent year-earlier figure (€ 56.6 million) by 13 %.
EBT after nine months amounting to € 14.4 million (2007: € 36.7 million) is subject to a significant negative impact from a correction in the investment book value of the package of shares in Pfleiderer AG held by SURTECO SE (3.02 % of the capital stock). SURTECO SE carried out an impairment of € 11.5 million on this share package on account of the negative development in the equity markets and the unfavourable economic forecasts.
Although the company will not be able to achieve the good figures of the previous year in 2008, mainly on account of the restructuring provisions, the management regards the group as being well positioned to take advantage of future opportunities. SURTECO SE remains on a very sound financial footing. On 30 September 2008, the Group reported very healthy indicators with a equity ratio of 37.4 %, net financial liability of € 168.5 million and a gearing ratio of 93 %. Furthermore, the company disposed over liquid assets amounting to € 57.1 million following a private placement issued in August 2007. Against this background, the long-term profitable growth of the company looks set to continue during the coming years, and market and technology leadership will continue to expand.
