With its companies combined in EMS-CHEMIE HOLDING AG, the EMS Group operates its world-wide business activities in the fields of Performance Polymers, Fine Chemicals and Engineering. The Group reports results for the first 4 months of 2000 exceeding both expectations as well as the (albeit poor) showing for the corresponding period of the previous year: consolidated net sales increased by 5.0% over the previous year to CHF 380 million (CHF 362 million), operational cash flow (EBITDA) improved by 8.7% to CHF 90.8 million (CHF 83.5 million), and income from operations (EBIT) was boosted by 10.6% to CHF 70.8 million (CHF 64.0 million).
The better than expected development of sales and income reported for all business fields must primarily be ascribed to the weak Swiss franc. Completed last year, the comprehensive restructuring project (discontinuation of low-income products and investment in new products, in particular high-temperature resistant plastics) generated only a small rise in sales - a modest 0.5% in local currency - but has brought about a significant improvement of margins.
Assuming an identical scope of consolidation, net sales would have risen not by 5.0% but by 6.1%, and by 9.2% taking into account the discontinued products. Adjusted sales growth, i.e. with the same currency, the same scope of consolidation and without accounting for product range streamlining, amounted to 4.4%.
