Simona: Manufacturer with strong results for first half of 2008

During the first six months of 2008, the Simona Group (www.simona.de) managed to expand both revenue and earnings against the backdrop of relatively stable economic conditions. Sales revenue generated during this period stood at 157.1 million Euro, which corresponds to year-on-year growth of 4.1 per cent. At the same time, the plastics-processing company propelled EBIT by 40.4 per cent to 3.2 million Euro. So the EBIT margin grew considerably in the reporting period: At 8.4 per cent (previous year: 6.2 per cent), it lies within the medium-term target range of 7 - 10 per cent.

Revenue from domestic sales amounted to 59.4 million Euro, thus matching the level achieved in the same period a year ago. In the region covering the "Rest of Europe and Africa" the company managed to lift sales revenue by three per cent to 79.3 million Euro. The sales region of "Asia, Americas and Australia" recorded a increase in revenue, up 27.9 per cent to 22.0 million Euro.

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Investments considerably increased in the first six months of 2008: As at June 30, 2008, a total of 12.0 million Euro (previous year: 5.4 million Euro) was channelled into the expansion and modernisation of production plant. The majority of these investments were for the construction of new facilities in Litvinov, Czech Republic, and Jiangmen, China.

Compared with December 31, 2007, total assets increased by 15.1 million Euro to 248.9 million Euro, buoyed in particular by more expansive business, an increase in investments and the rise in cash resources as a result of stronger cash flow from operating activities.

The second half of the year is expected to produce a stronger economic headwind. Despite this, the company remains confident that it can achieve its annual revenue target of 315 million Euro. "We have enhanced our product mix and are continuing to pursue our stringent programme of earnings improvement launched in 2007. Although the figures for the first half cannot be extrapolated for the purpose of determining annual results, we are confident that we can exceed last year´s solid earnings performance," said Wolfgang Moyses (picture), CEO of Simona AG.

About Simona
A manufacturer of thermoplastic products, Simona has production facilities and sales offices around the globe. The company´s product portfolio includes semi-finished products (sheets, profiles, welding rods), pipes and fittings as well as fabricated parts. Employing more than 1,200 people worldwide, the Group generates revenue of approx. 300 million Euro in 2007. In total, more than 35,000 products for a diverse range of applications are manufactured at three domestic facilities as well as sites located abroad. Annual production is well in excess of 100,000 tonnes. The exchange-listed stock corporation. The company´s registered office is in Kirn, Rhineland-Palatinate, Germany.

Simona AG, Kirn, Germany

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