12 July 2013 12:30 [Source: ICIS news]
LONDON (ICIS)--EMS Group’s first-half net operating income rose 9.3% year on year to Swiss franc (Swfr) 183m (€148m, $193m), boosted by the performance of its High Performance Polymers business, the Switzerland-based producer said on Friday.
Consolidated net sales during the period amounted to Swfr 954m, 5.5% higher than for the same period of the previous year. In local currencies growth in net sales would have been 5.7%, it added.
“In a volatile and heterogeneous market environment EMS was able to successfully further increase business in the main area of High Performance Polymers and in the main sales markets Asia and Europe,” EMS said.
“Especially positive development was shown by numerous new product applications for structural parts and the automotive business of the business unit EMS-EFTEC,” it added.
EFTEC develops, produces and markets materials and application technology in the fields of bonding, coating, sealing and damping.
In April, the company completed the takeover of the EFTEC automotive supply business in central and eastern Europe. The markets of central and eastern Europe had been serviced through a regional 50:50 joint venture D PLAST-EFTEC with Czech partner D PLAST.
First-half net operating income in the group’s High Performance Polymers business rose 14% year on year to Swfr 158m as sales increased 8.6% to Swfr 819m.
“In the main business area of High Performance Polymers new business with specialty products was developed successfully and global market positions strengthened,” EMS said.
“Numerous new and innovative applications were realised, in particular in the automotive industry and the telecommunication sector (smartphones and tablets),” it added.
However, EMS saw net operating income in its Specialty Chemicals segment fall 15% year on year to Swfr 24m, while sales declined 10% to Swfr 135m.
“The secondary business area Specialty Chemicals, mainly active in Europe, was hit by the weak economic situation and showed a drop in both net sales and result,” the group said.
Overall for 2013, EMS said it continues to expect net sales and net operating income slightly above those of the previous year.
“EMS will continue consistently to exploit globally existing market potential. The successful strategy of concentration on specialty products in the area of High Performance Polymers will be pushed forward.
"Market positions will be strengthened and in particular, growth markets outside of western Europe expanded,” it added.
($1 = Swfr 1.24, €1 = Swfr 0.95)
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