Kirn. Overall, 2018 proved to be another successful year for the SIMONA Group. Revenue growth was driven by sustained buoyancy in US sales and solid growth in Europe, complemented by the acquisition of a US-based extrusion company. Adjusted for the aforementioned acquisition, the Group managed to achieve its revenue guidance of €405-410 million. Earnings before taxes (EBT) rose by €7.7 million to €32.3 million. Earnings before interest and taxes (EBIT) amounted to €33.2 million. On this basis, the Group recorded an EBIT margin of 8.0 per cent, which is within the target range of 7-9 per cent.

In Europe, sales revenue grew by a modest 1.6 per cent to €273.5 million. While Germany, Switzerland and Austria recorded solid growth, Western Europe was adversely affected by sluggish business in France and Italy. Revenue from sales in Eastern Europe was slightly higher. In the United States sales revenue amounted to €114.2 million, which represents a year-on-year increase of 20.6 per cent. Fuelled by a dynamic aviation industry and favourable trends in the industrial products market, revenue expanded by €10.2 million in organic terms. The acquisition of SIMONA PMC, a US extrusion company, contributed €9.3 million to revenue growth. Business in Asia remained stable against the backdrop of an economic slowdown in China. As in the previous year, this region produced sales revenue of €30.2 million.

The product area encompassing Semi-Finished Products recorded revenue growth of 6.3 per cent, taking the figure to €333.7 million. Strong business in the field of aviation applications and stability in the core market centred around the chemical process industry contrasted with a poor performance in the area of construction and advertising applications. The acquisition of SIMONA PMC in the United States complements the Group's core competencies in the field of extrusion. At the same time, it will benefit from access to new materials and markets. This most recent acquisition will also allow SIMONA to diversify its product portfolio in the United States and strengthen its overall position in the market.

Building on a strong fourth quarter, SIMONA succeeded in meeting its growth targets in the Pipes and Fittings division. In this area, revenue was up by 4.9 per cent to €84.2 million. The key growth drivers included a positive global performance in the area of industrial products as well as solid sales relating to infrastructure applications in Germany and Eastern Europe. Initiated in 2017, efforts to reposition the Pipes and Fittings division are now bearing fruit.

The SIMONA Group is satisfied with its earnings performance. Earnings before interest and taxes (EBIT) amounted to €33.2 million (prev. year: €31.1 million*). At 8.0 per cent, the EBIT margin is within the target range of 7-9 per cent. Earnings before taxes (EBT) rose substantially by 31 per cent to €32.3 million (prev. year: €24.6 million), primarily as a result of positive currency effects. Earnings per share increased from €29.08 to €40.24. A proposed dividend increase from €12 to €14 will be submitted to shareholders at the Annual General Meeting on 7 June 2019.

In 2018, SIMONA made preparations for its future leadership structure. In Dr. Jochen Hauck, the company appointed an experienced plastics industry professional as COO effective from 1 January 2019. Dirk Möller, who held the position of COO for almost 25 years, will remain with the company until mid-2019 in order to ensure a smooth transition. Within the area of Finance & Administration this transition was made as early as mid-2018, with Michael Schmitz becoming the new CFO of the SIMONA Group. Appointed from within the company, he replaced recent retiree Fredy Hiltmann. Citing personal reasons, Wolfgang Moyses, who has been a member of the Management Board since 1999 and has held the position of CEO of SIMONA since 2003, announced that he would not be extending his contract scheduled to end in October 2019. His timely decision has given SIMONA ample time to select a suitable successor.

Outlook and key financials for Q1 2019

Against the backdrop of weaker economic conditions, SIMONA will be looking to expand its revenues further in the current financial year. The Group's revenue target for 2019 has been set at €435-450 million, while the guidance figure for the EBIT margin is 6-8 per cent. "We have defined three key strategic goals: to achieve a strategic reorientation of our Semi-Finished Products business in Europe with the aim of improving competitiveness, to raise our profile in Asia by means of active M&A as well as investments in the expansion of production and to establish a global business segment for the growing market covering the semiconductor industry," says Moyses.

SIMONA has entered the 2019 financial year with strong revenue growth and satisfactory earnings. Despite a downturn in the global economy and visible uncertainty among customers, the Group saw revenues expand by 12.4 per cent to €111.0 million (prev. year: €98.7 million). EBIT amounted to €8.4 million (prev. year: €9.1 million*). The year-on-year decline is attributable to a significant rise in energy and freight cost as well as the insolvency of a customer operating within the North American caravan industry, which produced exceptional charges of €0.7 million. At 7.6 per cent (prev. year: 9.2 per cent), however, the EBIT margin remained in the target corridor of 6-8 per cent.