Half-year report 2009 of the EMS Group

Half-year report 2009 of the EMS Group


With its companies combined in the EMS-CHEMIE HOLDING AG and with global activities in the business areas Performance Polymers and Fine Chemicals / Engineering, the EMS Group achieved net sales of CHF 541 million (837), a net operating income (EBIT) of CHF 71 million (136) and an operative cash flow of CHF 131 million (128) in the first half year of 2009.

Worldwide demand for consumer and investment goods dropped to historically low values in the first half year of 2009. In particular the automotive industry, which is of significant importance for EMS, showed a strong decline. As a result, a strong drop in sales volumes also occurred for EMS. However, through innovation EMS realised all new business successfully as planned and further increased market shares throughout the world.

Consolidated net sales in the first half year of 2009 were CHF 541 million (837) which is 35.3% lower than for the same period of the previous year. In local currencies net sales were reduced by 33.3% compared to the previous year. Development of net sales in the 2nd quarter of 2009 showed a slight improvement compared to the
1st quarter of the year.

Due to a strong position with speciality products and rapid, decisive action in view of the economic slump, EMS was successful in maintaining a high operational cash flow margin (EBITDA margin) of 18.2% (19.5%) despite considerably lower net sales figures and undiminished expenditure for development of future new business.

For 2009 EMS continues to expect the world economy to remain in a very weak state. The successful strategy of expansion of speciality business in the main area of Performance Polymers will be continued unabatedly by EMS. Due to the innovative, high-margin business with speciality products, on-going expansion of market position, abundant liquidity and a strong equity ratio, EMS sees itself to be in a good position to make use of opportunities in an independent, rapid and flexible manner.

Due to the economic conditions, EMS continues to expect net sales and net operating income (EBIT) for 2009 to be significantly below the previous year.