The HIRSCH Servo Group’s first quarter results have shown improvements in both profit and sales in the two divisions. The profit on ordinary activities (POA) has gone up 81% to 0.7 MEUR (PY 0.4 MEUR) and total sales 10% to 15.0 MEUR (PY 13.6 MEUR).
HIRSCH’s main division, EPS Processing , which accounts for 69% of total sales, posted an increase in POA of 0.1 MEUR to 1.0 MEUR (PY 0.9 MEUR). Sales rose by 1.8 MEUR to 10.3 MEUR (PY 8.5 MEUR). The main reasons for this development are the growing demand for EPS insulation due to high energy prices and good capacity utilization at our manufacturing facilities for packaging in Poland.
In the first quarter 2005/06, the POA in the Machinery and Plant Engineering Division saw an improvement of 0.1 MEUR over the same period the previous year to -0.3 MEUR (PY -0.4 MEUR). This result shows that the comprehensive cost-cutting measures introduced primarily for the block machines are taking effect and the break-even point should be reached during this fiscal. Sales were up 0.6 MEUR to 4.7 MEUR (PY 4.1 MEUR).
Profit and sales trends for the divisions in the 1st Quarter 2005/06:
|
|
1st Quarter |
1st Quarter |
Change in % |
Fiscal |
|
POA |
0.4 |
0.7 |
+81 |
1.4 |
|
EPS Processing |
0.9 |
1.0 |
+11 |
2.9 |
|
Machinery & Plant Engineering |
-0.4 |
-0.3 |
- |
-0.2 |
|
Other Fields* |
-0.1 |
0.0 |
- |
-1.3 |
|
Sales |
13.6 |
15.0 |
+10 |
57.2 |
|
EPS Processing |
8.5 |
10.3 |
+21 |
34.5 |
|
Machinery & Plant Engineering |
4.1 |
4.7 |
+15 |
19.5 |
|
Other Fields* |
1.0 |
0.0 |
- |
3.2 |
*includes other activities and business sold in the previous fiscal 2004/05
Outlook
Management expects the Group to show positive development during the 2005/06 fiscal year. If the market environment remains unchanged, the POA should more than double from 1.4 MEUR to 3.3 MEUR and the earnings per share rise by 15% to 4.60 EUR.
Consistent implementation of Strategy 2010 with clear positioning of the divisions and the HIRSCH Servo Group’s strategic alignment as a partner to globally operating customers with the focus on Eastern Europe form a sound basis for continued sustainable revenue growth.
The HIRSCH Servo Group is very well placed for the future with the growth drivers of energy prices and Eastern Europe . Firstly, the high energy prices are leading to increased demand in the fields of insulation and packaging, thus reflecting the ecological and economic benefits of EPS over other raw materials. And secondly, continued high demand for EPS products is to be expected in Eastern Europe, which the HIRSCH Servo Group is well equipped to meet with its strong presence in the region (three plants in Hungary and two in Poland ).
The next date on the financial calendar is the 10th Annual General Meeting on November 9, 2005 when the new members will be elected to the Supervisory Board. In addition to those already mentioned, Dr Georg Wall – entrepreneur, Axel Hirschberg – investment banker, Helmut Grienschgl – auditor and accountant and Dr Georg Gorton – lawyer, Michael Kaufmann – chairman of FRAPAG Industrieholding AG will also be standing as a candidate for the Supervisory Board.
*The HIRSCH Servo Group is the EPS specialist on the Vienna Stock Exchange with manufacturing facilities in Austria , Hungary , Poland and Italy . EPS products (EPS stands for expandable polystyrene and is better known under such brand names as Porozell ® or Styropor ® ) support a variety of functions, including energy savings, as well as sustainable and eco-friendly growth. Their wide-ranging applications cover packaging, shape-molded parts, building insulation, modular boards for underfloor heating, construction blocks and Thermozell ® lightweight concrete products.
For further information, please contact Michaela Promberger, Tel: +43 4277 2211-312, Fax: +43 4277 2211-370, E-mail: michaela.promberger@hirsch-gruppe.com , www.hirsch-gruppe.com