In the third quarter of 2005/06, the HIRSCH Servo Group again succeeded in substantially improving sales and earnings in its two business segments. The POA (profit on ordinary activities before taxation) rose more than tenfold in the first three quarters from 0.2 MEUR to 2.8 MEUR and total sales increased by 20% from 39.4 MEUR to 47.4 MEUR.
In the primary business segment of EPS Processing the POA climbed by 71% from 1.4 MEUR to 2.4 MEUR. This improvement in the result was achieved thanks to high energy prices leading to rising demand for EPS insulation and good capacity utilization in Poland, in spite of exchange rate losses from the Hungarian forint totaling 250 TEUR. Sales went up by 29% to 31.2 MEUR (24.2 MEUR in the previous year).
The Machinery and Plant Engineering business segment posted an increase in the POA of 1.0 MEUR from -0.6 MEUR to +0.4 MEUR, thus putting the POA back into the profit zone. The main reasons for this turnaround were the comprehensive cost-cutting measures chiefly introduced for block machines and the higher sales achieved. Here sales rose by 35% from 12.0 MEUR to 16.2 MEUR.
Profit and sales trends in the business segments:
|
|
Quarters 1-3 |
Quarters 1-3 |
Change In % |
Fiscal Year |
|
POA |
0.2 |
2.8 |
>1,000% |
1.4 |
|
EPS Processing |
1.4 |
2.4 |
+71 |
2.9 |
|
Machinery and Plant Engineering |
-0.6 |
0.4 |
- |
-0.2 |
|
Other activities 1) |
-0.6 |
0.0 |
- |
-1.3 |
|
Sales |
39.4 |
47.4 |
+20 |
57.2 |
|
EPS Processing |
24.2 |
31.2 |
+29 |
34.5 |
|
Machinery and Plant Engineering |
12.0 |
16.2 |
+35 |
19.5 |
|
Other activities 1) |
3.2 |
0.0 |
- |
3.2 |
Outlook
Given the excellent developments in the first three quarters, the HIRSCH Servo Group’s management has confirmed the positive outlook for the full year 2005/06 with an anticipated improvement in the POA of 1.4 MEUR to 4.5 MEUR and in the earnings per share of 3.99 EUR to 6.80 EUR.
Management has consequently upped its forecast for the 2006/07 fiscal year. Taking the impact of the expansion projects completed in 2005/06 including the start of activities in Romania and acquisition of Slovakian EPS insulation manufacturer Polyform s.r.o into consideration, the POA should be at least 15% higher in 2006/07 than in 2005/06.
The HIRSCH Servo Group is thus systematically implementing its goal of sustainable value and earnings increase stated in its strategy up to 2010.
Trends in predictions and quarterly figures are to be found on the website www.hirsch-gruppe.com under the main menu Investor Relations – Financial Data.
The next date on the financial calendar is September 15, 2006 when the provisional full year results for 2005/06 will be announced.
*The HIRSCH Servo Group is the EPS specialist on the Vienna Stock Exchange with manufacturing facilities in Austria, Hungary, Poland, Slovakia, Italy and shortly in Romania. 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