Masterflex AG : Q3/2012: Growth continues

Q3: Masterflex SE growth continues 
• Revenue up by 4.8%
• EBIT margin stable at 14.1%
• Earnings per share now 31 cents

Gelsenkirchen, 12 November 2012 - In the first nine months of the year Masterflex SE, the global specialist in high-tech plastic hoses, generated revenue of € 42.0 million. This represents a rise of 4.8%, with operating results of € 5.9 million. The corresponding gross margin of 14.1% is in line with the company's long-term route to growth.

"Our business in sophisticated connective hose systems is operating at unprecedented levels. We had anticipated a stronger third quarter, but the European market is still suffering from the current sovereign debt crisis" stated CEO Dr. Andreas Bastin.

In principle, Masterflex is standing by its annual forecast for 2012, although it is no longer possible to rule out annual sales falling slightly short for 2012 compared with the anticipated and ambitious forecast for sales growth of € 57 to € 58 million. Profitability of the business remains high despite the up-front costs required for internationalisation. Bastin confirmed: "We are looking at an EBIT margin in the region of 14%, even when taking into account a slight shortfall in our sales targets."

The internationalisation of Masterflex continues apace, with the focus currently on Asia. In China, assembly capacities are currently being established and the first significant new business has already been generated. Bastin stated: "In the medium term, business in Asia and America should flow alongside the traditional mainstay business in Europe so it can develop and become more independent from individual regions and sectors."

In the field of product innovations, Masterflex has also been able to advance by expanding its portfolio of high-tech plastics injection molding parts. With the acquisition of a two-component (2-C) machine, the subsidiary Fleima-Plastic can now manufacture 2-C injection molding elements in a single step process. This process typically uses a combination of hard support material and a malleable, soft surface, similar to the way this is used for a tumour marker in medical engineering.

Bastin confirmed: "High-tech plastics continue to have enormous potential, not only in terms of possible combinations of materials and additives to achieve new product features of interest to our customers, but also in terms of production processes, an area in which we have spent years, indeed decades, building our know-how. This is why we see plenty of scope for future growth in our high-tech connecting solutions."

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