Half-year report 2004 of the EMS Group

EMS Group - which comprises the business areas Performance Polymers, Fine Chemicals and Engineering and whose companies operate within EMS-CHEMIE HOLDING AG - reports a rise of 5.1% in net sales and a 7.9% increase in operating income (EBIT) for the first half of 2004 compared with the previous year. This result exceeded expectations: both net sales and operating income were boosted by increased sales volumes and the successful implementation of the cost-cutting program.

Consolidated net sales in Swiss francs were lifted by 5.1% to CHF 645 million (614). The rise in local currency terms came to 3.3%. The scope of consolidation remained unchanged. Net sales in the USA and Asia developed according to plan, while net sales in Europe were higher than expected. The encouraging volumes were additionally buoyed by the positive currency situation in relation to the Euro.

Operating income (EBIT) amounted to CHF 107 million an increase of 7.9% related to previous year (99). EBITDA rose 6.4% to CHF 140 million (132). This produced an EBIT margin of 16.6% (16.1%) and an EBITDA margin of 21.7% (21.4%). The disproportionate increase in operating income was achieved with the help of favorable commodity purchasing activities and successful implementation
of the cost-cutting program.

For 2004, EMS continues to expect net sales and operating income to be slightly higher than in the previous year.