Half-year report 2010 of the EMS Group

Half-year report 2010 of the EMS Group


With its companies combined in EMS-CHEMIE HOLDING AG and with global activities in the business areas Performance Polymers and Fine Chemicals / Engineering, the EMS Group achieved significantly higher net sales (+54.4%) and a more than doubled net operating income (EBIT) (+115.8%) in the first half-year of 2010 compared to the same period in the previous year. Even compared to pre-crisis figures, net sales and net operating income reached new record levels.

Consolidated net sales in the first half-year 2010 rose by 54.4% to CHF 836 million (541). This is an increase of 58.5% in local currencies.

The net operating income (EBIT) amounted to CHF 154 million (71) which is 115.8% above previous year. The EBITDA increased to CHF 180 million (98) which is 82.9% above previous year. The EBIT margin was 18.4% (13.2%), the EBITDA margin 21.5% (18.1%). The strong sales trend had a positive effect on the development of result and the result margin. The result margin was negatively affected, however, by massively increasing raw material prices and the strong Swiss Franc compared to foreign currencies. For this reason, price increases for customers became absolutely necessary.

The recovery of worldwide demand for consumer and investment goods which has been apparent since the middle of 2009 is continuing. The continually increasing cost of raw materials and the worsened exchange rate from Euro to Swiss Franc will not relax in the next months.

EMS will continue without change to follow its successful strategy of focusing on speciality business in the main area of Performance Polymers and expanding worldwide market positions.

For the whole year 2010, EMS expects considerably higher net sales and a significantly higher net operating income (EBIT) than in the previous year.