Turnover in Exotic Fabrics shows upward trend at Gamma
As a consequence of the current economic downturn, market conditions remained exceptionally difficult for Gamma Holding in the first quarter of 2009. For that reason, Gamma Holding has adapted the organisation to these conditions faster than planned. Moreover, the speed at which costs are reduced will be further increased.
Group turnover in the first three months of 2009 was EUR 164 million (2008: EUR 188 million). Currency movements had no effect. Organically, turnover fell by 13%.
Added value fell in the first quarter from EUR 112.5 million in 2008 to EUR 96.4 million in 2009, mainly due to the fall in turnover. On the other hand, Gamma Holding is starting to reap the benefits of the restructurings and stringent cost management. Compared with the first three months of 2008, operating expenses excluding restructuring expenses were EUR 6.5 million lower.
EBITDA of the group excluding restructuring expenses was EUR 13.0 million (2008: EUR 23.1 million).
EBITA1 of the group excluding restructuring expenses came to EUR 4.8 million (2008: EUR 14.4 million). Currency movements had an effect of 5%. Organically, EBITA1 excluding restructuring expenses showed a decrease of 72%.
Restructuring expenses in the first quarter totalled EUR 2.1 million (2008: nil). EBITA1 was EUR 2.7 million (2008: EUR 14.4 million).
The net group result came to EUR -2.4 million, due to the lower EBITA1 and higher financing charges.
Industrial Solutions posted a decline in turnover in the first three months of 2009. The fall in demand that the sector had to contend with in the fourth quarter of 2008 as a consequence of the recession continued in the early part of 2009.
Turnover of Industrial Solutions came to EUR 94 million (2008: EUR 116 million). Currency movements had an effect of 1%. Organically, the sector's turnover fell by 20%.
The sector's EBITA excluding restructuring expenses was EUR -0.8 million (2008: EUR 7.3 million). Currency movements had an effect of EUR 0.8 million.
Turnover of Belting came to EUR 57 million (2008: EUR 69 million). As a consequence of the stagnating economy there were delays worldwide in major projects of Original Equipment Manufacturers (OEMs), and customers postponed their orders. That applied to all types of belting, particularly in the construction sector and the automobile industry. The replacement market was also affected by the recession.
Turnover of Filtration was EUR 24 million (2008: EUR 28 million). The worldwide fall in demand for filter products manifested itself above all in the mining, chemical and automobile industries. It was particularly noticeable that OEMs operating in various sectors of industry deferred their spending. On the other hand, demand in the food industry proved less sensitive to the economic cycle.
Turnover of Coating & Composites came under the most pressurein the sector and totalled EUR 13 million (2008: EUR 19 million). Since the fourth quarter of 2008 there has been a sharp drop in demand as a consequence of the worsening economic climate. In particular, seemee® (printable media fabrics) saw a fall in demand because many companies worldwide have been cutting back on their advertising budgets.
Turnover of Lifestyle Fabrics totalled EUR 70 million (2008: EUR 72 million). Currency movements had an effect of -2%. Organically, the sector's turnover remained the same.
EBITA1 excluding restructuring expenses came to EUR 5.6 million (2008: EUR 7.1 million). Currency movements had no effect.