Swiss EMS Group: Annual results 2017

 

The EMS Group, with its companies combined in the EMS-CHEMIE HOLDING AG, is globally active in the business areas High Performance Polymers and Specialty Chemicals. In 2017, net sales increased by 8.2 % and net operating income (EBIT) by 6.3 % compared to previous year. New record levels for net sales, net operating income and net result were met

Compared to previous year, consolidated net sales grew by 8.2 % to reach CHF 2146 million (CHF 1983 million). The global economy developed in a moderately positive way. Growth in the automotive industry however, slowed. With innovative new business, EMS was able to achieve disproportionally high growth and further expanded business successfully with specialities.

Continuing upstream supply shortages caused a significant rise in raw material prices and forced EMS to realize several sales price increases.

Net operating income (EBIT) closed at CHF 582 million (548) which is 6.3% above previous year. The operational cash flow (EBITDA) rose by 5.1 % to reach CHF 635 million (CHF 604 million). Volume growth with high-margin specialities as well as efficiency improvements had a positive effect on result. The EBIT margin was 27.1 % (27.6 %), the EBITDA margin 29.6 % (30.5 %).

Net income rose to CHF 484 million (CHF 456 million) which is 6.3 % above previous year. Earnings per share increased to CHF 20.59 (CHF 19.19).

At the Annual General Meeting 2018, the Board of Directors intends to propose distribution of an ordinary dividend of CHF 14.50 (CHF 13.00) per share and an additional extraordinary dividend of CHF 3.50 (4.00) per share. This means that a total of CHF 18.00 (CHF 17.00) per share would be distributed.

With immediate effect, Darko Radanovic, previously Leader of the Business Unit EMS-GRILTECH, will become new Member of Executive Management of the EMS Group for a period of one year. He will then take over the position of Leader of the Business Unit EMS-GRIVORY Europe. Dr Jürgen Spindler, currently member of Executive Management, will leave the EMS Group for personal reasons by the end of March 2018.

For the business year 2018, EMS is expecting positive development of the global economy. The globally improved tax environment will support the economy. However, first signs of an overheated economy are notable, and inflation expectations are rising.

EMS is confident with regard to development of its own business. The successful strategy of worldwide growth with specialty products in the area of high-performance polymers will continue. Focus will stay to put on continually exploiting market potential with new, innovative products and applications as well as on further strengthening market positions. Continually rising raw material prices will make sales price increases unavoidable. EMS is establishing efficiency programmes in preparation for a possible change in the economy.

For 2018, EMS again expects net sales and net operating income (EBIT) slightly above previous year.

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