Rubber group Semperit to sell gloves unit
28/01/2020 11:52
VIENNA, Jan 28 (Reuters) - Austrian rubber group Semperit
SMPV.VI plans to sell its health business as part of its
transformation into an industrial rubber specialist, it said on
Tuesday.
Shares in the company rose 5% by 1152 GMT.
The health unit, which makes examination and surgical gloves
and accounts for around one third of group revenues, had once
been Semperit's most profitable unit. Increasing competition as
well as product and efficiency issues led to declining revenues
and a loss in 2018.
Helped by restructuring measures, it reported earnings
before interest, depreciation and amortisation (EBITDA) of 5.6
million euros in the first nine months of 2019 while sales fell
4.9% to 226 million euros.
In connection with the sale, Semperit expects to be able to
reach a higher EBITDA margin then the previously guided for 10%
until the end of 2024. The margin would be "oriented towards
industrial peers", it said.
(Reporting by Kirsti Knolle, editing by Louise Heavens)
((kirsti.knolle@thomsonreuters.com; +43 1 2530 1650 13;))