The HIRSCH Servo Group reports improved sales and earnings in both business segments for the first quarter. Its profit on ordinary activities (POA) rocketed 72% to 1.27 MEUR (previous year 0.74 MEUR) with sales up 46% to 21.9 MEUR (PY 15.0 MEUR).
In the primary business segment of EPS Processing the POA rose by 25% to 1.25 MEUR (PY 1.00 MEUR). On the plus side there was a HUF/euro exchange gain of 0.18 MEUR, but on the minus side rapidly rising raw material prices that could not immediately be compensated for with sales price increases in the first quarter. Given the already agreed price increases, the impact on profit should be lower in the second quarter. Sales in the primary business segment saw organic growth of 34%. If the sales from the companies acquired in Slovakia in the last fiscal year are included, the increase is 66% to 16.9 MEUR (PY 10.2 MEUR).
In the Machinery and Plant Engineering business segment, the POA showed a return to the black improving by 0.28 MEUR from -0.26 MEUR to +0.02 MEUR. Both business units (shape and block molding equipment) achieved break-even results in the first quarter. Sales rose by 4% from 4.8 MEUR to 5.0 MEUR.
Profit and sales trends for the business segments in the 1st Quarter 2006/07:
|
|
1st Quarter 2005/06 |
1st Quarter 2006/07 |
Change in % |
Fiscal |
|
POA |
0.74 |
1.27 |
+72 |
4.58 |
|
EPS Processing |
1.00 |
1.25 |
+25 |
2.89 |
|
Machinery and Plant Engineering |
-0.26 |
0.02 |
- |
1.67 |
|
Other activities |
- |
- |
- |
0.02 |
|
Sales |
15.0 |
21.9 |
+46 |
68.7 |
|
EPS Processing |
10.2 |
16.9 |
+66 |
44.8 |
|
Machinery and Plant Engineering |
4.8 |
5.0 |
+4 |
23.8 |
|
Other activities |
- |
- |
- |
0.1 |
|
Employees (annual average) |
401 |
538 |
+34 |
478 |
Outlook
Management confirms the optimistic outlook for the full fiscal year 2006/07.
With the first quarter above expectations, organic sales growth higher than the previous year in the primary business segment of EPS Processing and the price increases effective from the second quarter on, a basis has been created for attractive growth in earnings and sales.
The forecast announced in September 2006 includes a rise in POA by 15% to 5.3 MEUR (PY 4.6 MEUR) and in the earnings per share to 8.60 euros (PY 7.44 euros).
The next date on the financial calendar is November 20, 2006 when the 11th Annual General Meeting will be held.
*The HIRSCH Servo Group is the EPS specialist on the Vienna Stock Exchange with manufacturing facilities in Austria, Hungary, Poland, Slovakia, Italy and 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