GERMANY – Surteco Group SE, holding company for national and international brands for surface technology, reports sales based on preliminary figures of €534.2 million (2017: €516.4 million) and earnings (EBIT) of €31.9 million (2017: €33.7 million) in the period from January to September 2018.

During the third quarter, demand declined significantly due to market conditions, especially in Europe, while the costs of raw materials remained at a very high level.

Corresponding countermeasures and a positive development in the Asia-Pacific region and in the skirtings and release papers product groups in Europe were unable to compensate the decline. Since the current situation is expected to persist, the Board of Management has adjusted the revised forecast from 10th August 2018.

The sales target for the financial year 2018 is now projected at between €685 million and €695 million and EBIT is expected to be in the range of €37 million to €39 million.

This further deterioration in framework conditions is also likely to extend into the next business year, and against this background the company has started an optimization program. This includes plans to adapt the Group’s processes and structures to accommodate changes in the marketplace. One-off expenses of approximately €7 million are anticipated for this program.

These expenses will be set aside as provisions in the fourth quarter after they have been worked out in detail. They will also have an additional impact on the results for the business year 2018. The company will publish the report for the first three quarters on 14 November 2018.