Turnover of Gamma Lifestyle Fabrics sector rise

01 Aug '08

5 min read

Gamma Holding wants to increase focus and scale in its portfolio of companies and in this regard has the intention to divest both Verseidag Ballistic Protection, part of the Coating & Composites business unit, and the Sailcloth business unit.

From this half-year press release onwards, the presentation of these activities has been adjusted in accordance with IFRS 5, Non-current Assets Held for Sale and Discontinued Operations. Results for continuing operations have also been adjusted accordingly.

In the first six months of 2008 Gamma Holding's turnover excluding discontinued operations rose to EUR 375 million (2007: EUR 357 million). This includes a 6% positive effect arising from the acquisition of the Danish company uni-chains. Currency movements had an effect of -5%. Organic growth of turnover was 4%.

EBITA came to EUR 26.3 million (2007: EUR 28.8 million). This includes a limited positive effect arising from the uni-chains acquisition. Currency movements had an effect of -12%. Organic growth of EBITA was 3%. EBITA as a percentage of turnover amounted to 7.0% (2007: 8.1%).

The net group result came to EUR 15.6 million (2007: EUR 17.7 million), due to a lower operating result, higher financing costs and an improved result from discontinued operations. Adjusted to take account of currency effects, the net group result increased by 1%.

Industrial Solutions:
Turnover of the Industrial Solutions sector rose to EUR 231 million (2007: EUR 217 million), including a 10% positive effect due to acquisitions and a -6% effect due to currency movements. Organic growth of the sector's turnover was 2%.

EBITA amounted to EUR 14.5 million (2007: EUR 17.5 million), including a 1% positive effect due to acquisitions and a
-20% efffect due to currency movements. Organic growth of EBITA was 2%. EBITA as a percentage of turnover came to 6.3% (2007: 8.1%).

Belting had to contend with the globally weak economic climate and the low exchange rate of the dollar. Large projects for OEMs were delayed, particularly in the United States and Germany. Nevertheless, turnover rose by 1% on a comparable basis, primarily due to growth in Europe and Asia.

Additionally, turnover increased as a result of the acquisition of the Danish company uni-chains, which specialises in modular belts for industries such as automotive, food and paper processing.

Due to the continued decline of the dollar exchange rate, part of the Danish production will be relocated to the United States, where uni-chains already has production facilities. Belting developed ultrasync belts, specialty belts designed for industrial applications that demand an accurate drive and synchronised transport. These belts are used in the food industry, in packaging lines and in wood processing.

As a result of the declining economy in the United States and the low dollar exchange rate, Filtration's turnover was under pressure. In the United States the business unit mainly had to contend with disappointing developments in the construction sector.

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