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SIG: Healthy development in first Half Year SIG: Healthy development in first Half Year; upward revision of net sales and profit forecast for year 2006 SIG Combibloc: • Expansion of overseas markets reporting first successes already • Net sales in China more than doubled; Southeast Asia grows by over 40%; Economies of scale in those markets making increasingly positive impact on operating profit • Sales in German milk market increased by 6%, resulting in stable development of net sales in Germany SIG Beverages: • Value added bottling strategy starting to have strong positive impact • SIG Plasmax wins new, well known customers; concept is being developed vigorously; acquisition of SCHOTT participation in joint venture • SIG Asbofill with excellent order intake for aseptic fillers • Strong upswing in net sales at SIG Corpoplast and continued stable business development at SIG Cantec Group: • Growth initiatives in the divisions lead to 12% increase in net sales • Rigorous cost management contributes to 6% rise in EBIT (excl. restructuring costs) Outlook: • Continuation of positive course of business expected; hence, upward revision of net sales and profit forecast for 2006 Both SIG divisions can look back on a positive and better than expected first half year 2006. Thanks, above all, to strong growth rates in China (more than 120%) and Southeast Asia (over 40%), net sales of the SIG Combibloc division rose by 10% to EUR 586 million (2005: EUR 532 million). In Germany, SIG Combibloc’s most important market, the partial substitution in the juice segment by PET began more slowly than expected. The 6% net sales increase in the milk sector almost completely offset the fall-off in the juice market. The EBIT of the division, prior to restructuring of EUR 16 million, rose by 2% to EUR 55 million (2005: 54 million; EBIT including restructuring costs in the first half year 2006: EUR 39 million). Faced with persistent pressures on margins in Europe and, as a result of expansion costs in the new markets, operating profit did not grow proportionately to net sales. The cost saving measures initiated in the first half will begin to impact in the second semester, thereby having a positive effect on EBIT. Development of the SIG Beverages division is very satisfying. At EUR 86 million, its order intake was 32% higher than the previous year (2005: EUR 65 million). The net sales of the division also rose by 17% to reach EUR 63 million (2005: EUR 54 million). In terms of EBIT, a balanced result was achieved as, according to plan, profits from the traditional activities SIG Corpoplast and SIG Cantec have been invested in the new technologies SIG Asbofill and SIG Plasmax. SIG Asbofill further expanded its market position, increasing its order intake to EUR 17 million. SIG Plasmax won three new, renowned customers, thereby advancing into further important market segments. To even better exploit the potentials of the SIG Plasmax technology, SIG acquired, on 01.08.2006, the 50% share participation in the Plasmax joint venture hitherto held by SCHOTT AG. SIG Corpoplast demonstrated a strong net sales trend, which is attributable to the successful new positioning within the value added bottling strategy. The EBIT margin also continues to develop positively. At SIG Cantec, the stable order backlog position ensured that the budgeted figures were met. At Group level, the successes within the divisions led to a 12% increase in net sales to EUR 646 million (2005: EUR 577 million). EBIT at Group level, prior to restructuring costs, grew by 6% to EUR 50 million (EBIT 2005: 47 million; EBIT including restructuring costs in the first half year 2006: EUR 34 million). Seen overall, net profit from core business before restructuring costs fell in the first half 2006 by 10% to EUR 35 million (2005: EUR 39 million). This is due in part to the lower margins from SIG Combibloc business in Europe, as well as the financial profit that suffered from unfavorable exchange rate trends in the first semester. Outlook 2006 Given a consistent economic environment (in particular, stable raw material prices) SIG assumes that the positive course of business will continue for the 2006 calendar year overall. For SIG Combibloc, the overseas markets are likely to exhibit ongoing strong growth. Furthermore, because of delays in partial substitution in the juice segment of carton by PET bottles in the second half, business in Germany will probably soften less than hitherto estimated. Consequently, SIG is revising its 2006 forecast for growth in net sales at SIG Combibloc to 7-9%, with the EBIT margin (prior to restructuring) rising to over 9%. At SIG Beverages, the substantial order backlog should ensure continued dynamic business development. Hence, the net sales forecast for this division has been raised by 15-20%. In terms of EBIT, a balanced result at least is expected. At Group level, net sales and profit are expected to more than double compared to the first half 2006. Outlook 2007 SIG assumes that the partial substitution of the beverage carton in the German juice market will begin in 2007 at the latest. This will result in the net sales of the Group increasing only moderately in 2007. By contrast, it should be feasible to maintain the EBIT margin at the 2006 level. Download Media Release 060822 News overview >> |
