GERMANY - Surteco Group SE reports (based on preliminary figures) sales of approximately EUR 593 million and earnings (EBIT) of approximately EUR 41 million in January to September 2022 period.

Although sales revenues expected to remain within the forecast range due to passing on the strong increased raw material prices, demand fell at a surprising rate in the third quarter.

Against the background of increasingly difficult framework conditions, the Management Board has adjusted the forecast for the full year 2022. In particular, an expected continued weak demand with persistently high raw material prices means, that the earnings target of EUR 55 million to EUR 65 million in 2022 will no longer be achievable.

Countermeasures already introduced, such as the use of short time working in the affected areas, cannot offset the effects of lower demand. As part of its Operational Excellence program, the company is working continuously on further optimizing internal processes and structures and thus sustainably improving the cost position.

In this respect, an EBIT of between EUR 37 million and EUR 42 million is now expected for the 2022 financial year. The company will publish the report for the first three quarters on 26th October 2022.