Shigo Asia AG
SHIGO ASIA AG: Sales growth continues in the first half of 2010
Shigo Asia AG / Key word(s): Half Year Results 30.09.2010 18:01 --------------------------------------------------------------------------- - Sales increased by 56% to 34.52 million EUR - EBIT impacted by higher costs - Production capacity will be expanded to 13.2 million blankets at the end of October Hamburg, 30. September 2010. SHIGO ASIA AG, the largest synthetic blanket supplier in the world, continues its strong growth: In the first half-year of 2010 SHIGO ASIA achieved sales of 34.52 million EUR, which represents an increase of 56% compared to the first half of 2009. Even though the economic downturn after financial crisis still affected the synthetic blanket industry in 2010, SHIGO ASIA has benefited from its earlier investments in meeting strict environmental standards and created an important sustainable advantage in a market where the Chinese government continues to emphasize and tighten environmental standards. 82.6% of the company's total sales were generated in its main markets Europe, North America, South America and the Middle East. Operating profit (EBIT) was impacted by rising costs for raw materials and rising labour costs. Qian Chunsheng, Chairman of SHIGO ASIA, states: 'The greatly improved skill level of our staff and the benefit from our future-oriented investments in meeting strict environmental standards allowed us to achieve a strong growth in the first half of 2010. We are very satisfied with the development of the staff and the whole company.' Outlook The uncertain worldwide economic situation is expected to result in a decrease of high value-added orders. This could lead to a decrease of the average selling price for synthetic blankets. Furthermore raw material prices are showing an increasing trend as well as the labour costs. These factors combined are expected to lead to a decrease in the operating profit of SHIGO in the year 2010. SHIGO's management team will take great efforts to realise the annual operation plan of the company. Linyi Grene Industrial and Trading Limited, one of the two of SHIGO's subsidiaries, has finished the equipment installation of three new production lines at the end of August 2010. A full capacity production is expected for the end of October 2010. The total production capacity of SHIGO will be improved from 9.6 million blankets to 13.2 million blankets at the end of October. About SHIGO ASIA SHIGO ASIA AG develops, produces and sells household textiles. The company is the largest manufacturer of blankets in the world. SHIGO has more than 2 500 employees and observes the highest international standards in its production operations in China. SHIGO's competitive strengths are the development of innovative products and modern production technology. High-quality workmanship and lavish design are outstanding features of the textile products, which are optimised on an ongoing basis with the focus primarily on health and comfort. Disclaimer concerning prognoses Certain statements in this communication contain formulations or terms referring to the future or future developments, as well as negations of such formulations or terms, or similar terminology. These are described as forward-looking statements. In addition, all information in this communication regarding planned or future results of business segments, financial classification numbers, developments of the financial situation, or other financial or statistical data contains such forward-looking statements. The company cautions prospective investors not to rely on such forward-looking statements as certain prognoses of actual future events and developments. The company is neither responsible nor liable for these forward-looking statements. It is not responsible for updating such information, which only represents the state of affairs on the day of publication. Press inquiries: Kirchhoff Consult AG, Janina Wismar Tel.: +49 40/609186-50, janina.wismar@kirchhoff.de 30.09.2010 Dissemination of a Corporate News, transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de ---------------------------------------------------------------------------
Latest News
Latest Reports
No Reports found
Upcoming Events
No Events found
Webcasts
No Webcasts found