DGAP-News: SURTECO SE / Key word(s): Final Results
SURTECO SE: SURTECO is confident that sales and earnings can be
increased further in 2015
30.04.2015 / 11:00
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SURTECO is confident that sales and earnings can be increased further in
2015
- Consolidated sales achieve a new record level of EUR 618 million in
2014
- Adjusted EBITDA improves by 56%
- Renewed increase in dividend to EUR 0.70 planned
- Outlook for 2015: Organic growth expected in both lines of business,
pre-tax profit of more than EUR 32 million projected
Buttenwiesen-Pfaffenhofen, 30 April 2015 - SURTECO SE - one of the world's
leading manufacturers of decorative surface materials - achieved record
sales amounting to EUR 618.5 million in the business year 2014, which was
54 % above the year-earlier figure of EUR 402.1 million. Apart from a
modest organic increase in sales, full consolidation of Süddekor taken over
at the end of 2013 was responsible for this rise. The operating result
(EBITDA) at EUR 62.8 million posted a five-percent increase compared with
the equivalent year-earlier figure of EUR 59.7 million, although it was
impacted by one-off effects. In 2013, the acquisition of Süddekor made a
positive contribution to earnings of EUR 13.5 million arising from the
acquisition. In the reporting year 2014, a provision of EUR 9.4 million for
the restructuring process in the decorative printing segment for 2015
impacted with a one-off negative effect on the result. The comparable
EBITDA adjusted for these effects increased from EUR 46.2 million to EUR
72.2 million, i.e. by more than 50 %. Against the background of the
positive operating development and confidence for the new business year
2015 the Board of Management and Supervisory Board of SURTECO SE will
recommend to the Annual General Meeting to be held on 26 June 2015 that a
payment of dividend increased from EUR 0.65 to EUR 0.70 per share should
be made for the business year 2014.
"SURTECO is extremely well positioned for the future following the
integration of Süddekor. On the basis of a robust economic forecast, we are
therefore confident of once more being able to increase sales and earnings
in 2015," commented Chairman of the Board of Management of SURTECO SE
Friedhelm Päfgen.
Expansion in both segments and in foreign business
The sales of the Strategic Business Unit Plastics remained stable at
EUR 227.2 million. However, if the drop in sales as a result of the
cladding business divested in the previous year is taken into account
alongside negative currency effects, operating growth of 3.4 % was
achieved. The paper segment generated a leap in sales of 124 % to EUR 391.2
million due to full consolidation of Süddekor.
The one-off effects referred to above and the significant acquisition-based
increase in depreciation and amortization led to a decrease in earnings to
EUR 27.6 million (2013: EUR 37.0 million) in the consolidated EBIT. In
spite of a significantly improved financial result, pre-tax profit at EUR
22.3 million (2013: EUR 28.0 million) was below the equivalent year-earlier
figure. Earnings per share came down from EUR 1.86 to EUR 1.19 partly as a
result of the significantly increased number of shares generated by the
capital increase at the end of 2013.
Balance sheet quality and cash flow improved
SURTECO has a healthy balance sheet structure. Once more, the equity ratio
rose slightly from 49.7 % to 50.4 %. Thanks to the decline in net financial
debt to EUR 145.8 million (2013: EUR 151.2 million), gearing - defined as
the ratio of net financial debt to equity capital - fell by 4 percentage
points to 45 %. After the free cash flow was in negative territory at minus
EUR 68.8 million due to the company acquisition in the previous year, the
value was once again significantly positive at EUR 26.9 million in 2014.
Outlook for 2015: Organic growth in both segments - pre-tax profit is
projected to increase to just above EUR 32 million
Given the robust economic forecast and increasing synergies derived from
the Süddekor takeover, SURTECO is confident of being able to continue
increasing sales and earnings further for the business year 2015. The two
business units are anticipating a slight increase in sales revenues and
higher profits. The increasing synergies generated by the integration of
Süddekor are likely to exert a positive impact. Overall, the Board of
Management therefore forecasts a pre-tax profit slightly above EUR 32
million.
You can find the Annual Report for 2014 and other information about SURTECO
SE on the Internet at www.surteco.com.
Profile of SURTECO
SURTECO SE, Buttenwiesen-Pfaffenhofen, is a leading international
specialist for surface technologies. The product portfolio includes papers
printed with decorative designs, impregnated products, release paers,
decorative flat foils and edgebandings based on specialist papers for
technical applications and plastics. The extensive product portfolio is
completed by skirtings made of plastic, technical extrusions for industry
and do-it-yourself ranges and shutter systems.
The Group currently has a workforce of appr. 2,700 and manufactures at 20
sites on four continents, currently generating approximately 30 % of sales
in Germany, 45 % in European countries outside Germany and the remainder in
America, Asia and Australia. Customers of SURTECO generally come from the
wood based materials, flooring and furnishing industry and the interior
industry.
The shares of SURTECO SE are listed on the official market (Prime Standard)
of the Frankfurt and Munich Stock Exchanges under the ticker symbol SUR and
ISIN DE0005176903. They are also traded on the stock markets in Berlin,
Düsseldorf and Stuttgart. The stock is listed on the SDAX of Deutsche
Börse.
Cautionary note regarding forward-looking statements
This press release contains statements of future forecasts or expectations
and other forward-looking statements and involves known and unknown risks
and uncertainties. There is therefore no guarantee for the statements and
expectations expressed herein. The actual results and developments may
differ substantially. The company does not intend to - and assumes no
obligation - to update any forward looking statements contained herein or
to adapt such information to future results or developments.
Contact:
<pre>
SURTECO SE
Andreas Riedl Martin Miller
Chief Financial Officer Investor Relations and Press Office
+ 49 (0) 8274/99 88-563 + 49 (0) 8274/99 88-508
Internet www.surteco.com
Email ir@SURTECO.com
Fax + 49 (0) 8274/99 88-515
</pre>
Important indicators of SURTECO SE
(in EUR million)
<pre>
2013 2014
Consolidated sales 402.1 618.5
- of which paper 174.7 391.2
- of which plastics 227.4 227.2
Foreign sales in % 70 72
EBITDA 59.7 62.8
EBITDA margin in % 14.8 10.2
EBITDA adjusted 46.2 72.2
EBIT 37.0 27.6
EBT 28.0 22.3
Consolidated net profit 21.9 18.5
Earnings per share in EUR 1 1.86 1.19
Dividend per share in EUR 2 0.65 0.70
</pre>
<pre>
31/12/2013 31/12/2014
Balance sheet total 626.1 636.7
Equity 311.0 321.1
Net debt 151.2 145.8
Gearing (level of debt) in % 3 49 45
Equity ratio in % 49.7 50.4
Cash flow from current business operations 54.8 54.3
Free cash flow -68.8 26.9
Employees 2,664 2,705
</pre>
(1) Based on an number of shares amounting to 15,505,731, Number of shares
2013: 11,767,363
(2) For the business year 2014: Dividend proposal to the Annual General
Meeting
(3) Net debt / Equity
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Language: English
Company: SURTECO SE
Johan-Viktor-Bausch-Str. 2
86647 Buttenwiesen-Pfaffenhofen
Germany
Phone: +49 (0)8274 99 88-0
Fax: +49 (0)8274 99 88-5 05
E-mail: ir@surteco.com
Internet: www.surteco.com
ISIN: DE0005176903
WKN: 517 690
Indices: SDAX
Listed: Regulated Market in Frankfurt (Prime Standard), Munich;
Regulated Unofficial Market in Berlin, Dusseldorf,
Hamburg, Hanover, Stuttgart
End of News DGAP News-Service
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350205 30.04.2015
DGAP-News: SURTECO SE: SURTECO is confident that sales and earnings can be increased further in 2015
| Source: EQS Group AG