With its companies combined in EMS-CHEMIE HOLDING AG and with global activities in the fields of Performance Polymers, Fine Chemicals and Engineering, the EMS Group reports net sales on the level of the previous year and slightly higher operating income for the business year 2003. This result exceeds expectations by a small margin. The high earnings level was maintained in the face of a difficult market environment.
With its companies combined in EMS-CHEMIE HOLDING AG and with global activities in the fields of Performance Polymers, Fine Chemicals and Engineering, the EMS Group reports net sales on the level of the previous year and slightly higher operating income for the business year 2003. This result exceeds expectations by a small margin. The high earnings level was maintained in the face of a difficult market environment.
Compared with the previous year, net sales in local currencies rose by 1.7%; sales in Swiss francs - CHF 1'221 million (1'221) - remained roughly on the level of 2002. In an identical scope of consolidation the net sales increase in Swiss francs would be +1.5% (+3.2% in local currencies).
Operating income (EBIT) was boosted to CHF 197 million (195), i.e. by 1.3% over the previous year. EBITDA increased by 1.6% to CHF 266 million (261). The EBIT margin was thus 16.2% (16.0%), the EBITDA margin 21.8% (21.4%). These margins lead the field in any international comparison of competitors.
Ordinary financial income reached a high CHF 171 million (19). EMS decided to fully write down the securities (in particular the financial participation in LONZA) in the profit and loss account at market value on 31.12.03. This has caused a revaluation of securities of CHF -230 million. Financial income after value adjustments thus amounts to CHF -58 million.
Net income for the year after deducting taxes, minority interests and this value adjustment hence amounts to CHF 107 million (161).
Shareholders' equity increased to CHF 1'441 million (1'289) with an equity ratio of 46.2% (40.7%) and is thus within the target range.
The EMS strategy for the future assigns top priority to operational growth by way of speciality products, in particular in the field of Performance Polymers. Although EMS continues to operate on the foundation of extremely solid capital resources, financial income will in future be afforded lower priority. The LONZA investment will therefore be continued as a purely financial investment with no strategic bearing. The stake in Lonza - 22.5% at the end of 2003 - has in the meantime been reduced to 19.5%.
On a comparable basis, EMS expects net sales and operating income (EBIT) for 2004 to rise slightly over the level of the previous year.
