GERMANY - Surteco Group SE, holding company for leading national and international brands in surface technology, looks back on a robust performance in spite of sustained difficult economic framework conditions after the first six months.

In line with expectations, Group sales from January to June 2019 (6M-2019) amounted to € 352.7 million and they were below by around 3% on the year-earlier level of € 365.2 million.

EBIT (earnings before financial result and income tax) in 6M-2019 was influenced by higher depreciation and amortization owing to investments, but at € 20.2 million (6M- 2018: € 23.5 million) it was also in line with expectations. In 6M-2019, Surteco achieved consolidated net profit of € 12.7 million (6M-2018: € 15.1 million). Surteco therefore confirms the all-year forecast for 2019, stable sales of between € 655 and 685 million (not including proportionate sales of € 15 million from the divested US impregnating business) and achieving a significantly higher Group EBIT between € 38 and 40 million.

“We confirm our annual targets for 2019 to relatively stable Group sales. The cost-efficiency measures are demonstrating an impact, so we stik to the EBIT forecast,” commented Dr. Herbert Müller, the Chairman of the Management Board of Surteco Group SE.

The three segments of Surteco (Profiles, Decoratives and Technicals) are continuing to undergo varying development in 6M-2019. While Profiles benefitted from its broadly-based sector differentiation and increased sales from € 44.1 million in 6M-2018 to € 47.2 million in 6M-2019, the Decoratives Segment at € 253.7 million (6m-2018: € 262.6 million) and Technicals at € 51.8 million (6M-2018: € 58.5 million) suffered from a weakening of the economic conditions and falling demand in the laminate and furniture industries.

The segment EBIT showed a similar development to that evident in sales. Profiles posted an increase to € 5.0 million in 6m-2019 after € 4.7 million in 6M-2018, while Decoratives and Technicals were unable to achieve the year-earlier level.

On 19 July 2019, the US impregnating business allocated to the Technicals Segment was sold. The operations had a projected annual sales volume of around € 33 million for 2019.