H&R WASAG AG / Preliminary Results/Final Results
19.02.2010 11:01
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H&R WASAG AG increases results considerably despite economic crisis
* Operating earnings (EBITDA) up by 23.2% to EUR65.8 million
* Result includes non-recurring expenses of EUR1.9 million
* EBITDA margin increased to 8.6% (2008: 5.2%)
* Turnover dropped to EUR762.3 million due to crude oil price development
* International segment achieved record earnings of EUR19.9 million
* Large-scale investment of around EUR55.0 million to increase output of
high value products
(Please note: All figures contained in this press release are preliminary
and unaudited)
Salzbergen, 19 February 2010.
H&R WASAG AG has increased its profitability despite the economic crisis:
With a share of around 95% of consolidated turnover, the
Chemical-Pharmaceutical Raw Materials Division was the main contributor to
this positive development. Despite higher volumes of main products in this
division, consolidated turnover was down by 26.4% to EUR762.3 million. This
decline was mainly attributable to lower raw materials prices, which were
passed on to customers in reduced product prices. EBITDA increased by 23.2%
to EUR65.8 million (previous year: EUR53.4 million) while EBIT was up by
21.3% from EUR37.1 million to EUR45.0 million. The EBITDA margin improved
considerably from 5.2% to 8.6%. Consolidated net profit rose by 117.9% to
EUR25.5 million (previous year: EUR11.7 million) and earnings per share
surged to EUR0.85 (previous year: EUR0.39). Results include non-recurring
expenses (EUR1.5 million) for restructuring the Plastics Division as well
as the increase of a provision (EUR0.4 million) for environmental
damages at Sythengrund. When comparing these figures with the previous
year it is worth noting that there was a one-off impact on consolidated
operating earnings in 2008 due to a provision of EUR22.0 million for an
anti-trust fine.
Significant increase in results in Chemical-Pharmaceutical Raw Materials
Divisions
EBITDA of the largest segment, the Chemical-Pharmaceutical Raw Materials
Domestic Division (turnover share: 74.1%), went up by 37.5% to EUR51.7
million despite the difficult economic environment. In the first half of
the year in particular, the segment's sales volumes were impacted by lower
demand on the back of the economic crisis. This in turn meant that
refineries were running at a comparatively low capacity of 80%. It was
therefore impossible to fully leverage the increased capacities created in
the course of the 'Project 40' initiative which was completed at the
beginning of the year. Demand for crude oil-based speciality products went
up considerably in the second half of the year, resulting in capacity
utilisation almost reaching these new limits. As a result total volumes of
main products sold during the year increased slightly compared to 2008
reaching a new sales volume record. 'Prices for our feedstocks on the other
hand continued to increase in the course of the year and we were only able
to pass on these increases with time lag.
The positive volume development is therefore not fully reflected in the
segment's results,' comments Gert Wendroth, Chairman of the Executive Board
of H&R WASAG AG.
EBITDA at the Chemical-Pharmaceutical Raw Materials International Division
went up by 56.7% to a record EUR19.9 million (2008: EUR12.7 million). 'We
are now benefiting from making an early start in positioning ourselves in
the dynamically growing Asian market,' explains Niels H. Hansen, Chief
Operating Officer.
Plastics Division restructuring program
The situation in the Plastics Division remained challenging. This smallest
segment of H&R WASAG AG, accounting for just 5.1% of turnover, was again
facing declining sales. The Company responded to continued low demand
particularly from automotive industry, the division's most important
customer base, by launching an extensive restructuring program. Half of the
operating loss (EBITDA) of EUR-3.0 million (previous year: EUR+2.1 million)
are attributable to provisions for ongoing restructuring measures. In
addition to adjusting capacities, the Company is pushing initiatives to
generate new customer groups, e.g. from the medical sector.
Positive outlook
At the beginning of 2010, demand for products in the
Chemical-Pharmaceutical Raw Materials Divisions continues to be robust.
However, adverse weather conditions proved to be a particular challenge for
German refineries, resulting in short, unscheduled shut-downs.
Construction work on a propane deasphalting plant is scheduled to begin at
the Hamburg refinery in the 1st quarter. At around EUR55.0 million, this is
the largest single investment in the history of H&R WASAG AG, which will
further increase the refinery's production depth and raise its output
value. After the scheduled completion in the 4th quarter of 2011, the
Executive Board is anticipating an additional EBITDA contribution of
between EUR12 million to EUR14 million per year from 2012 onwards. 'The
syndicated loan of EUR300.0 million from 2008 ensures that there is a sound
financial base to fund this project. Originally the start date was planned
for 2008, by postponing it we are now able to benefit from lower costs from
engineering services and steel,' comments Andreas Keil, Chief Financial
Officer.
Efforts to reduce costs in the considerably smaller Plastics Division are
starting to deliver the first positive effects. But despite gaining new
customers from other sectors, a sustained return to profitability in the
long-term also requires demand in the automotive sector to pick up.
'We are optimistic about the 2010 financial year in view of the positive
development in the Chemical-Pharmaceutical Raw Materials Divisions and the
initial success of restructuring efforts in the Plastics Division. Assuming
that crude oil markets remain stable and the economy continues to recover,
we anticipate consolidated operating earnings in 2010 to exceed 2009
figures,' explains Wendroth. He added that the Company has now set the
tracks to achieve further growth in turnover and earnings by deciding to
build the propane deasphalting plant. At the same time product development
for improving aromatic plasticers for the tyre industry will be further
enforced in the light of new regulations for the labelling of tyres from
2012 onwards to improve properties like fuel economy, abrasion, wet grip
and noise.
Upcoming events:
30 March 2010 Publication of final figures 2009
14 May 2010 Publication of Q1 Report 2010
27 May 2010 Annual Shareholders' Meeting in Hamburg
13 August 2010 Publication of Q2 Report 2010
12 November 2010 Publication of Q3 Report 2010
Contact:
H&R WASAG AG, Investor Relations / Communications, Christian Pokropp
Am Sandtorkai 64, 20457 Hamburg
Phone: +49 (0)40-43218-321, Fax: +49 (0)40-43218-390,
E-mail: Christian.Pokropp@hur-wasag.de
www.hur-wasag.com
About H&R WASAG AG:
H&R WASAG AG, a speciality chemicals group, is listed in the SDAX. The
Company develops and produces crude oil-based chemical-pharmaceutical
speciality products and high-precision plastic parts.
Kontakt:
H&R WASAG AG
Investor Relations / Public Relations
Christian Pokropp
NeuenkirchenerstraÃe 8, 48499 Salzbergen
Tel.: 040-43218-321, Fax: 040-43218-390
Mail: Christian.Pokropp@hur-wasag.de
www.hur-wasag.com
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Language: English
Company: H&R WASAG AG
Neuenkirchener Str. 8
48499 Salzbergen
Deutschland
Phone: +49 (0)40 43 218 321
Fax: +49 (0)40 43 218 390
E-mail: investor.relations@hur-wasag.de
Internet: www.hur-wasag.de
ISIN: DE0007757007
WKN: 775700
Indices: SDAX
Listed: Regulierter Markt in Frankfurt (Prime Standard), Düsseldorf,
Hamburg; Freiverkehr in Berlin, München, Hannover, Stuttgart
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DGAP-News: H&R WASAG AG increases results considerably despite economic crisis
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