Key-figures and comments on the results of the first semester
| Key-figures Campine Consolidated (IFRS) | ||
| In '000 EUR | 30/06/2008 | 30/06/2007 |
| Revenue | 63.529 | 62.577 |
| Result of operating activities | 1.650 | 5.785 |
| Net financial result | 2.065 | - 3.004 |
| Result of operating activities after net financial result | 3.715 | 2.781 |
| Tax expense | - 1.092 | - 880 |
| Result of the period | 2.623 | 1.901 |
| Group share in the net result of the period | 2.623 | 1.901 |
| Number of personnel | 172 | 170 |
| Net result per share (in EUR) (1.500.000 shares) | ||
| Result of operating activities | 2,48 | 1,85 |
| Group share in the net result of the period | 1,75 | 1,27 |
¨ During the first semester 2008 the Campine Group achieved a turnover of EUR 63.53 million compared with EUR 62.58 million in 2007 (+1 %).
¨ The operating result amounted to EUR 1.65 million (EUR 5.79 million in 2007) (-72 %). The fall is partly due to lower margins in all BU's as a result of the continuing weak USD and reduced margins on the physical deliveries of Lead as prices fell in 2008 compared to a sharp rise in the first half of 2007.
¨ Net financial result increased to EUR 2.07 million (EUR -3.00 million loss in 2007) thanks to the lead hedge profit of EUR 2.49 million (EUR -2.60 million loss in 2007).
Other financial costs remained almost identical to 2007.
Other financial costs remained almost identical to 2007.
¨ Battery reception hall: The floor of the new hall - built to increase capacity and to improve the environmental standard of the recycling of old batteries - has been repaired and the hall is in use again since 1st August 2008.
Legal actions to recover direct and indirect consequential loss are still ongoing and a provision of EUR 0.39 million, against the cost of this investment was made in 2007.
Legal actions to recover direct and indirect consequential loss are still ongoing and a provision of EUR 0.39 million, against the cost of this investment was made in 2007.
¨ Profit after taxes amounted to EUR 2.62 million, compared with EUR 1.90 million in 2007
(+38 %).
(+38 %).
¨ Results per Business Unit :
¨ Campine Recycling: Despite a slowing down of the automotive sector we increased our volume to 22,085 mT (20,952 mT in 2007) (+5 %).Turnover reached EUR 32.68 million (EUR 25.49 million in 2007) (+28 %).
The LME-lead prices started the year 2008 at a level of 2,608 USD/mT or 1,772 EUR/mT in average in January 2008 - coming from a top in October 2007 of 3,719 USD/mT or 2,615 EUR/mT. After a short rise in February with a top around 3,400 USD/mT, the LME-lead price started to decrease continuously to reach a low of 1,735 USD/mT in June. This sharp decrease in LME-lead price has been only partly followed by the raw material market, which may result in lower future margins. Nevertheless, the average sales prices over the first semester 2008 were still considerably higher than the ones of the comparable period in 2007.
The relatively high raw material stock at 31-12-07 - built up when market prices were high in 2007 - has been totally sold and stock management has been streamlined which results in lower stock levels.
However, the recent decrease of the overall price level - combined with the absolute low USD - had negative impact on the margins and hence the result of the first semester 2008. On the other hand the hedge profit has more than compensated for that.
On 30 June 2008 the forward sales position on the LME was 4,000 mT, compared to 5,700 mT on 31 December 2007. As our stock position reduced the hedge was reduced accordingly. On 30 June 2008, the average hedging price of the open position was 2,169 USD/mT, compared to 2,767 USD/mT on 31 December 2007.
The LME-lead prices started the year 2008 at a level of 2,608 USD/mT or 1,772 EUR/mT in average in January 2008 - coming from a top in October 2007 of 3,719 USD/mT or 2,615 EUR/mT. After a short rise in February with a top around 3,400 USD/mT, the LME-lead price started to decrease continuously to reach a low of 1,735 USD/mT in June. This sharp decrease in LME-lead price has been only partly followed by the raw material market, which may result in lower future margins. Nevertheless, the average sales prices over the first semester 2008 were still considerably higher than the ones of the comparable period in 2007.
The relatively high raw material stock at 31-12-07 - built up when market prices were high in 2007 - has been totally sold and stock management has been streamlined which results in lower stock levels.
However, the recent decrease of the overall price level - combined with the absolute low USD - had negative impact on the margins and hence the result of the first semester 2008. On the other hand the hedge profit has more than compensated for that.
On 30 June 2008 the forward sales position on the LME was 4,000 mT, compared to 5,700 mT on 31 December 2007. As our stock position reduced the hedge was reduced accordingly. On 30 June 2008, the average hedging price of the open position was 2,169 USD/mT, compared to 2,767 USD/mT on 31 December 2007.
¨ Antimony: Despite the weak USD and strong Asian competition we sold almost the same sales volume as in the previous year. However turnover fell by almost 11 % to EUR 22.98 million (EUR 25.74 million in 2007) as average sales prices in EUR per ton fell by 8%.
The weak USD keeps putting pressure on the margins of several of our products as the lower exchange rate of the USD to the EUR annulled the increased sales prices in USD.
The weak USD keeps putting pressure on the margins of several of our products as the lower exchange rate of the USD to the EUR annulled the increased sales prices in USD.
¨ Plastics: The Plastics division sales were down with a turnover of EUR 8.13 million (EUR 9.92 million in 2007) (-11 %). A drop of volume to 2,524 mT (2,910 mT in 2007) (-13 %) was compensated by better margin business so that the contribution of Plastics remained at the same level as the previous year.
Some projects did not develop as quickly as expected, so that the reward of our efforts is delayed.
Some projects did not develop as quickly as expected, so that the reward of our efforts is delayed.
Perspectives full year 2008
Results in the short term may fluctuate depending on the development of metal and currency prices. On basis of current price levels we expect a reasonable result.
¨ Campine Recycling: We expect that lead prices will not reach the peaks of 2007 although short term movements may be sharp. However, we expect to be in a position to absorb these market evolutions in the medium term so that volumes will achieve the year budget and the 2007 sales level. At current price levels a good result can be expected.
¨ Antimony: Antimony prices have recently gone up considerably in USD and may also fluctuate. Current challenges in the economic climate may result in lower volumes which could be compensated by higher prices and margins.
¨ Plastics: We have increased our business development efforts to advance the outcome of current projects.
Note: A reclassification in the presentation of the 2007 results by EUR 0.185 million has been made between operating and financial result in respect of exchange rate differences.
