SURTECO wants to use “PREIS” to emerge strengthened from the current economic and financial crisis which has also led to tangible reductions in sales for the global supplier to the construction and furnishing industries. SURTECO ranks among the market leaders with surface materials based on plastics and technical papers. Last year, the Group implemented a programme across the Group under the designation “PREIS 2010” which is intended to generate annual savings effects of more than 10 million euros from 2011.
SURTECO wants to use the “PREIS” initiative to structure company processes across all levels in Germany and abroad to be more productive, generate more return, be more efficient, more innovative and more speedy. This programme structured over the medium to long term is mainly about achieving improvements in operating efficiency in sales and purchasing as well as quality management and working capital.
The Group believes that this approach embodies the cornerstones for being in a position to continue maintaining the strategic growth trajectory as market and technology leader. However, the initiative also includes strengthening the in-house portfolio which is to be modified strategically to match the changed market conditions and expectations. SURTECO intends to shed less profitable business lines and take advantage of any strategic opportunities that are presented. The financial platform required for this action has the necessary stability: Despite the very difficult environment – in the first quarter of 2009, sales revenues were 22 percent below the comparable year-earlier figures – SURTECO SE was able to continue reducing net financial liabilities during this period by 17.7 million euros and hence improve gearing to 87 percent. This approach continues the cost-reduction programmes and adjustment measures that were already introduced in 2008 and that allowed the company to adjust to the changed framework conditions.
SURTECO SE will continue to strengthen the associated efforts. The Group was compelled to take action in the face of average declines in volumes of 21 percent – in some cases up to 35 percent. In order to retain its competitiveness, SURTECO SE is also being compelled to close plants or relocate production facilities. For example, melamine production has been transferred from Buttenwiesen to Sassenberg. The edging tape facility in Montreal/Canada will be closed after the relocation of production to Brampton and Greensboro on 30 September 2009. These changes have impacted on personnel: By the end of 2009, the Group will employ a workforce reduced by at least 250 employees (total number of employees at 31 December 2008: 2,137).
The Strategic Business Units ‘Paper’ and ‘Plastics’ at SURTECO SE generated consolidated sales amounting to 403 million euros in 2008 and therefore fell short of the figures for the previous year by 3 %. The Group generated around one third of these sales in Germany (-4 %). The business there posted tangible falls particularly in the second half of the year. A similar picture has emerged for the American market which was 15 % below the previous year. European business closed with a slight increase of (+1 %), primarily as a result of the first-time consolidation of Gislaved for an entire year.
The operating result (EBITDA) of SURTECO SE – impacted by expenses (7.3 million euros) for the restructuring programmes described above – was reduced by 22 percent to 58.3 million euros. The consolidated net profit at 6.8 million euros was 79 percent below the value for the year 2007. Nevertheless, SURTECO is paying dividends to its shareholders – although the dividend is reduced to 35 euro cents per share.
Source: SURTECO
SURTECO wants to use the “PREIS” initiative to structure company processes across all levels in Germany and abroad to be more productive, generate more return, be more efficient, more innovative and more speedy. This programme structured over the medium to long term is mainly about achieving improvements in operating efficiency in sales and purchasing as well as quality management and working capital.
The Group believes that this approach embodies the cornerstones for being in a position to continue maintaining the strategic growth trajectory as market and technology leader. However, the initiative also includes strengthening the in-house portfolio which is to be modified strategically to match the changed market conditions and expectations. SURTECO intends to shed less profitable business lines and take advantage of any strategic opportunities that are presented. The financial platform required for this action has the necessary stability: Despite the very difficult environment – in the first quarter of 2009, sales revenues were 22 percent below the comparable year-earlier figures – SURTECO SE was able to continue reducing net financial liabilities during this period by 17.7 million euros and hence improve gearing to 87 percent. This approach continues the cost-reduction programmes and adjustment measures that were already introduced in 2008 and that allowed the company to adjust to the changed framework conditions.
SURTECO SE will continue to strengthen the associated efforts. The Group was compelled to take action in the face of average declines in volumes of 21 percent – in some cases up to 35 percent. In order to retain its competitiveness, SURTECO SE is also being compelled to close plants or relocate production facilities. For example, melamine production has been transferred from Buttenwiesen to Sassenberg. The edging tape facility in Montreal/Canada will be closed after the relocation of production to Brampton and Greensboro on 30 September 2009. These changes have impacted on personnel: By the end of 2009, the Group will employ a workforce reduced by at least 250 employees (total number of employees at 31 December 2008: 2,137).
The Strategic Business Units ‘Paper’ and ‘Plastics’ at SURTECO SE generated consolidated sales amounting to 403 million euros in 2008 and therefore fell short of the figures for the previous year by 3 %. The Group generated around one third of these sales in Germany (-4 %). The business there posted tangible falls particularly in the second half of the year. A similar picture has emerged for the American market which was 15 % below the previous year. European business closed with a slight increase of (+1 %), primarily as a result of the first-time consolidation of Gislaved for an entire year.
The operating result (EBITDA) of SURTECO SE – impacted by expenses (7.3 million euros) for the restructuring programmes described above – was reduced by 22 percent to 58.3 million euros. The consolidated net profit at 6.8 million euros was 79 percent below the value for the year 2007. Nevertheless, SURTECO is paying dividends to its shareholders – although the dividend is reduced to 35 euro cents per share.
Source: SURTECO
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