Industrial fabrics producer Gamma Holding under pressure
In the first nine months of 2008 Gamma Holding's turnover excluding discontinued operations increased by 6% to EUR 561 million (2007: EUR 532 million). This includes a positive effect of 7% arising from the acquisition of the Danish company uni-chains and an effect of -6% due to currency movements. Organic growth was 5%.
EBITA came to EUR 36.4 million (2007: EUR 40.5 million). This includes a limited effect arising from the uni-chains acquisition and an effect of -13% due to currency movements. Organic growth of EBITA was 3%. EBITA as a percentage of turnover amounted to 6.5% (2007: 7.6%).
The net group result fell by 22% and came to EUR 18.4 million (2007: EUR 23.7 million), due to a lower operating result and higher financing costs. Adjusted to take account of EUR -3.2 million in currency effects, the net group result is 9% lower than last year.
Developments third quarter
Gamma Holding's turnover increased by 7% to EUR 186 million (2007: EUR 175 million). Acquisitions had an effect of 7% and currency movements an effect of -7%. Organic growth of turnover came to 7%. EBITA came to EUR 10.1 million (2007: EUR 11.7 million). Currency movements had an effect of -15%. Organic growth of EBITA was 2%. EBITA as a percentage of turnover amounted to 5.4% (2007: 6.7%). The net group result came to EUR 2.8 million (2007: EUR 6.0 million) due to a lower operating result, higher financing costs and decreased results from Discontinued Operations.
Turnover of the Industrial Solutions sector rose by 4% to EUR 111 million (2007: EUR 107 million). Acquisitions had an effectof 11% and currency movements an effect of -8%. Organic growth of turnover was 1%. The sector's third quarter result was lower, partly due to a reduction of stocks, currency movements and increased margin pressure.
Belting had to contend with a globally weak economic climate. Particularly in the United States and Europe, customers delayed purchases, causing the organic growth of turnover to remain the same. The recently acquired Danish producer of modular belts uni-chains is now operating under the new name of Ammeraal Beltech Modular. The company succesfully introduced durable, hygienic modular belts specially designed for the processing of poultry.
The global economic headwinds also influenced Filtration. Despite disappointing developments, particularly in America, organic growth of turnover was stable. In order to meet the increased Asian demand for compact filter elements, the business unit created a new manufacturing line in its Chinese plant in Suzhou. This new line will primarily be used to develop filter applications for laser cutters. Production in Europe and the United States will be optimised in order to further cut costs.
Despite the weak economic situation, Coating & Composites' organic growth of turnover rose by 4% compared to last year. In particular the product groups duraskin® (roofing materials) and seemee (printable media fabrics) showed an increase in turnover in the United States, the Middle East and North Africa. The business unit supplied the material for huge banners that covered several streets of the Swiss town of Basel during the annual art fair. The performance of the ptfe-solutions product group (PTFE-coated glass fibres for industrial applications) was at the same level as last year.