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|  | 04/21/2008 - Süd-Chemie Group continues profitable growth in 2007 and makes a considerable increase in future-related investments
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- Revenue rises by 7% to €1.075 billion
- EBIT outpaces revenue, growing by 21% to over €100 million
- Positive outlook for 2008: revenue expected to increase by at least 7% and the EBIT by at least 10%
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Successful year in 2007
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Süd-Chemie AG, Munich continued its profitable growth during 2007. Due mainly to improving internal performance and efficiency, and based on its outstanding technological positions, the Group further expanded the leading market positions in its core business areas. Compared to 2006, consolidated revenue rose by 7.2% to €1.075 billion, although negative currency effects reduced total revenue by some €40 million.
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In spite of considerable increases in the prices of energy, transportation and raw materials, the profit from operations (EBIT) rose by 20.7% on a year-on-year basis, reaching €100.8 million, thus slightly exceeding the Group's earnings target which had been raised to €100 million in mid-2007. All core areas of activity contributed to this rise in earnings. The EBIT margin was improved by 1.1 percentage points to 9.4%. Earnings before interest, taxes and depreciation (EBITDA) climbed by 16.1% to €142.2 million, representing an EBITDA margin of 13.2%.
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Consolidated profit of €47.4 million for the year 2007 was down €8.1 million on the previous year. Account must however be taken of an earnings contribution of €10.2 million from operation and sale of the pet products business that was included in the profit reported for 2006. The Supervisory Board and the Managing Board will be proposing a dividend of EUR1.10 per share at the Annual General Meeting to be held on 30 May 2008. Adjusted for the special dividend paid last year to mark the company‘s 150th anniversary, this represents a dividend rise of 10% compared to the previous year.
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Compared with 2006, total assets held by the Süd-Chemie Group increased by 4.6% to €921.3 million, while the equity ratio rose by 1.2 percentage points to 38.5%. The number of employees in the Group amounted to 5,031 at 31 December 2007, 252 more than at the end of 2006. This increase was largely due to the takeover of a majority interest in Chemindus, a Malaysian waste-water specialist based in Kuala Lumpur, as well as new recruits in the research and development sector. In Germany alone, the number of employees increased by 96 compared with 2006 to reach 1,395.
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As a result of its targeted investments throughout last year, Süd-Chemie has created a basis for continuing its profitable, high-speed growth in the future. Research and development expenses were increased by 17.0% to €46.7 million, equivalent to a research and development ratio of 4.3%. Investment in property, plant, equipment as well as intangible assets rose to a new record level in 2007 totalling €111.6 million (2006: €69.1 million). Based on the Group's revenue, this represents an investment ratio of 10.4%.
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Positive outlook
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In view of the confidence prevailing in Süd-Chemie's key markets, the excellent market positions held by Süd-Chemie and the good start to 2008, the company‘s Managing Board is again expecting a positive business performance for the current year. Revenue growth of between 7% and 11% to between €1.15 and €1.2 billion is forecast for 2008, while earnings from operations (EBIT) are expected to outperform revenue, rising by at least 10% to between €110 and €115 million – based on a constant investment ratio of around 10%. Süd-Chemie's Managing Board remains optimistic also for 2009.
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Süd-Chemie's Annual Report for 2007 is available at www.sud-chemie.com.
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Enquiries to:
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Süd-Chemie AG
Corporate Communications and Board Affairs
Patrick Salchow, Jochen Orlowski
Tel. +49 (0) 89 5110-250/-247
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Statements relating to future events
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This report contains statements relating to future events based on current estimates made by the management with respect to prospective developments. Such statements are subject to uncertainties and risks which Süd-Chemie is neither able to control nor accurately assess, including for instance future market conditions and the economic environment, the behaviour of other market participants or governmental measures. Should any one of these or other uncertain or imponderable factors take effect, or should assumptions on which the statements are based prove to be incorrect, the actual results may differ significantly from those explicitly defined or implicitly contained in these statements. Süd-Chemie neither intends nor undertakes a specific obligation to update statements relating to future events in order to adjust these in line with events or developments occurring after the date of this report.
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Süd-Chemie AG (www.sud-chemie.com) is a publicly quoted (Security Identification Number ISIN: DE0007292005; WKN: 729200) specialty chemicals company headquartered in Munich, Germany and operating on a worldwide scale. Key markets served by its Adsorbents Division include the consumer-goods, packaging and foundry industries, as well as the paper and plastics industries and water treatment. Products manufactured by the Catalysts Division offer solutions for the chemicals, petrochemicals and refinery industries, for energy storage and hydrogen production as well as off-gas purification. The common denominator of all its products and innovations is the efficient and sparing use of natural resources to enhance the quality of life for humans and the environment. Süd-Chemie generated sales of €1.075 billion in 2007, approx. 80% of these outside Germany. At the end of 2007, the group employed more than 5,000 people at its 70 sales and production sites worldwide.
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