Kirn. The SIMONA Group increased its sales revenue by 2.3 per cent to €204.9 million in the first half of 2018 (prev. year: €200.3 million). Revenue was up markedly – after currency adjustments – in both the United States and Asia. Europe, by contrast, saw a slowdown in growth due to a slightly weaker economic performance. The plastics processing company managed to increase EBIT by 10.0 per cent to €18.8 million (prev. year: €17.1 million¹). At 9.2 per cent, its EBIT margin was at the upper end of the guidance range of 7-9 per cent for the financial year as a whole.

SIMONA's solid performance was underpinned by a strong second quarter. Sales revenue totalled €106.2 million in Q2, up 4.8 per cent on the figure posted for the same quarter a year ago (€101.3 million). The first half was driven by substantial organic growth beyond the borders of Europe. In the United States, for instance, revenue expanded by 11.6 per cent after adjustments for currencies, while Asia recorded growth of 17.5 per cent. Due to the effects of foreign currency translation, growth in the US was 2.3 per cent calculated on the basis of euros, taking the figure to €51 million, while Asia expanded by 10.9 per cent to €15.2 million. In Europe, sales revenue rose by 1.4 per cent to €138.7 million (prev. year: €136.7 million).

SIMONA generated revenue of €165.2 million (prev. year: €161.1 million) from the sale of Semi-Finished Parts, which was 2.5 per cent up on the prior-year figure. Business centred around PVC sheet products for the Aviation sector and high-performance plastics, e.g. PFA, expanded significantly in the first half. The market for foamed PVC sheets for applications in the printing and advertising industry remained highly competitive.

Revenue generated within the Pipes & Fittings division totalled €39.7 million in the first half (prev. year: €39.2 million), with sales performance being impacted by a sluggish first quarter in the area of project-based business. Business relating to the industrial sector and fittings continued to develop well.

SIMONA is satisfied with its earnings performance in the first half. Earnings before taxes (EBT) rose from €12.5 million to €18.7 million. Group EBIT increased by 10.0 per cent, up from €17.1 million¹ in the previous year to €18.8 million in the first half of 2018. The EBIT margin rose from 8.5 per cent¹ to 9.2 per cent. EBITDA improved from €24.2 million¹ a year ago to €26.0 million at the end of the reporting period. The EBITDA margin stood at 12.7 per cent, compared to 12.1 per cent¹ at the end of June 2017.

"The quality of our bottom-line result is encouraging. We succeeded in improving at an operating level and lifted EBIT significantly. At the same time, we managed to sustain global organic growth. Adjusted for currencies, the US and Asia expanded markedly. The downside risks to global economic growth have become more pronounced. Some of the established economies appear to have reached their peak in terms of growth rates. We felt the effects of this in Europe. We anticipate that we will be able to meet our Group revenue target of €405-410 million and our EBIT margin target of 7-9 per cent for 2018, despite the fact that the second half of the year tends to be weaker due to seasonal effects," says Wolfgang Moyses, CEO of the SIMONA Group.

Management Board succession
Dr. Jochen Hauck will become a member of the Management Board of SIMONA AG effective from 1 January 2019. Dr. Hauck replaces Dirk Möller as Chief Operating Officer, who will be leaving the SIMONA Management Board as from 30 June 2019. Dr. Jochen Hauck currently holds the position of Global Sales Director and Deputy Business Unit Manager of the Self-Adhesive Films business unit at Renolit SE, Worms. The RENOLIT Group is a global plastics company specialising in sheets and films. Following his degree studies in mechanical engineering at RWTH Aachen, Dr. Hauck worked for RWTH Aachen and Klöckner Pentaplast before joining Renolit in 2006. After the departure of Dirk Möller as from 30 June 2019, the Management Board of SIMONA AG will consist of Wolfgang Moyses, CEO, and Dr. Jochen Hauck, COO.

Acquisition in the US plastics market
The SIMONA Group has acquired Premier Material Concepts, LLC (PMC), Findlay, Ohio, USA. PPMC is an extrusion company specializing primarily in the manufacture of plastic sheet products used in caravan, agricultural, and industrial applications. Employing more than 60 people, the company generated annual revenue of approx. USD 27 million in fiscal 2017. Focusing on attractive niche markets for thermoforming applications, PMC supplies high-performance plastics requiring specialist solutions and significant materials expertise. Among the key materials processed by the company are TPO, ABS, and combinations of vinyl and acrylic with ABS. PMC is renowned for its highly flexible production capabilities and its extensive in-house expertise in the field of product development. The company was owned by a private equity firm. Both parties to the transaction have agreed not to disclose details regarding the terms of the purchase agreement and the consideration payable.