EMS Group: Annual Results 2010

With its companies combined in EMS-CHEMIE HOLDING AG and with global activities in the business areas Performance Polymers and Fine Chemicals / Engineering, in 2010 the EMS Group achieved net sales of CHF 1,596 million (1,198) and a net operating income (EBIT) of CHF 282 million (222). This means that net sales and net operating income were not only significantly higher than in the previous year, they also reached new record levels in the 75-year-history of the company.

Compared to the previous year consolidated net sales in Swiss Francs increased by 33.2% to CHF 1,596 million (1,198) and by 39.6% in local currencies. The very good economic environment, expansion of the market position in Asia and realised new business resulted in an extremely positive development of sales volumes.

Net operating income (EBIT) was CHF 282 million (222) – an increase of 27.0% compared to the previous year. The EBITDA amounted to CHF 335 million (280) and closed 19.8% higher than in the previous year. The good sales development had a positive effect on result. Continually increasing raw material prices and the strong Swiss Franc however, had an increasingly burdening effect on the result margin. The EBIT margin amounted to 17.6% (18.5%); the EBITDA margin to 21.0% (23.3%).

Net financial income was CHF -1 million (28). Negative value adjustments due to foreign currencies included in this figure amounted to CHF 23 million.


Net income after taxes amounted to CHF 232 million (221) and was 4.9% above the previous year. Earnings per share increased to CHF 9.71 (9.66).

The cash flow reached CHF 291 million (279) and the free cash flow CHF 242 million (241).

Equity ratio increased to a high 66.5% (59.7%).

For the 2010 business year EMS plans to distribute an ordinary gross dividend of CHF 6.50 per share (5.00) and an additional Anniversary Dividend of CHF 6.00 per share (in the previous year a special dividend of CHF 5.00). Overall, a total of CHF 12.50 per share (10.00) will then be distributed.
For 2011, EMS is expecting an ongoing positive business development together with a continued increase in raw material prices and an unfavourable foreign currency situation. In order to satisfy increasing customer demand, additional production capacity will be taken into operation in the next months. In 2011, EMS is expecting slightly higher net sales and net operating income (EBIT) compared to the previous year.