H&R WASAG AG / Half Year Results
14.08.2008
Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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- Turnover during first half year on a record level of 495.3 million
(+22.2 %)
- Half year's result of 28.0 million (EBT) documents stable development
of the company
- Forecast confirmed
Salzbergen, 14 August 2008:
Under difficult conditions and despite the scheduled downtimes at the sites
in Salzbergen and Hamburg-Neuhof, H&R WASAG AG confirms its forecast for
the financial year 2008 on the basis of the second quarter. In particular
due to increased sales prices resulting from higher crude oil prices,
turnover grew to a record value of 266.2 million (second quarter of 2007:
198.1 million). During the first half of 2008, turnover grew by more
than 22 per cent to 495.3 million (first half of 2007: 405.4 million).
Despite dramatically increased cost prices and despite the fact that sales
prices could only be increased with a delay, operating earnings before
interest, taxes, depreciation and amortisation (EBITDA) of 18.5 million
during the second quarter of 2008 (second quarter of 2007, adjusted for the
sale of the Explosives Division: 20.7 million) and earnings before taxes
(EBT) of 12.4 million (second quarter of 2007, adjusted: 16.8 million)
were within the target corridor for the first half of 2008. Total half year
results are also in line with expectations, with earnings before taxes
(EBT) of 28.0 million (2007, adjusted: 38.1 million). On this basis,
the Executive Board confirms the forecast to achieve a turnover of about
one billion euros and earnings before taxes (EBT) for the whole year in the
order of magnitude of 50 million to 60 million. 'Also in extremely
difficult times, we are well on track,' says Gert Wendroth, Chairman of the
Executive Board of H&R WASAG AG.
High crude oil price brings new challenges
Further increases in crude oil prices during the second quarter, confronted
H&R WASAG AG with new challenges. 'Our Sales Department has again done
excellent work,' says Wendroth. It succeeded in absorbing the price
increases by corresponding increases in prices for the products of H&R
WASAG and so setting the base for a more adequate margin situation during
the second half of the year.
Nevertheless, the result of the quarter was negatively impacted by
significantly increased raw material costs since the price increases could
only be passed on to customers with a delay due to term contracts. This
effect was partially offset by the higher valuation of inventories, also
resulting from the increases in raw material prices.
In addition, the higher raw material prices led to a clear expansion of
working capital (total of inventories and receivables for deliveries and
services), which again significantly increased from 204.6 million on 31
March 2008 to 246.7 million at the end of the second quarter. Although
this development had basically been anticipated with the new syndicated
loan agreed at the beginning of the year, the Executive Board believes it
is necessary to review the investment programme, given the fact that the
high volatility in the raw material markets is likely to prevail. 'Also in
the case of additional unexpected price increases, we would like to have an
adequate liquidity buffer for a continuously stable development of turnover
and earnings,' emphasises Wendroth.
At the same time, the investment sums for the objects planned so far have
also increased significantly, as reported at the General Shareholder
Meeting. 'We stay on our growth course, but we will review parts of the
investments planned with regard to their amount, timing, and configuration.
The capacity expansion investments of 'Project 40' currently under way will
be implemented as planned,' explains the Chairman of the Executive Board.
Plastics Division with decrease in result
The development of the Plastics Division was not satisfactory during the
second quarter of 2008. Operating earnings (EBITDA) at an amount of 1.0
million (second quarter of 2007: 1.4 million) were below those of the
previous year, which had also to be attributed to the slackening economic
development of the automotive industry, besides the increases in raw
material prices. The current restructuring of the European business and at
the Chinese subsidiary, which is 100 per cent owned by H&R WASAG Group
since the beginning of April, also led to higher costs. 'These effects of
these measures will only show up in the medium-term and then lead to
increasing revenues,' announces Wendroth. In the total year 2008, operating
earnings (EBITDA) is expected to remain below last years 3.9 million.
Conversion of preferential shares into ordinary shares completed
The conversion of preferential shares into ordinary shares, based on the
resolution adopted by the General Shareholder Meeting on 24 June 2008, was
completed. After the registration made on 8 August 2008, the share capital
of H&R WASAG AG now consists of a total of 29,973,112 ordinary shares.
Detailed information about current developments can be found in the
quarterly reports as at June 30, 2008, which will be available on our
Internet site under www.hur.wasag.com at 10 a.m. today, for both review and
download. Please find attached our summary table with key figures for the
1st half year 2008.
Contact:
H&R WASAG AG, Investor Relations / Communication, Christian Pokropp
Neuenkirchenerstraße 8, 48499 Salzbergen
Tel.: +49 (0)40-43218-321, Fax: +49 (0)40-43218-390, Mail:
Christian.Pokropp@hur-wasag.de
www.hur-wasag.com
H&R WASAG AG:
The company develops and manufactures specialised crude oil-based
chemical-pharmaceutical products and produces precision plastic parts. The
group companies are well-positioned as market and/or technology leaders in
the respective business fields.
Contact:
H&R WASAG AG
Investor Relations / Public Relations
Christian Pokropp
Neuenkirchenerstraße 8, 48499 Salzbergen
Tel.: 040-43218-321, Fax: 040-43218-390
Mail: Christian.Pokropp@hur-wasag.de
www.hur-wasag.com
DGAP 14.08.2008
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Language: English
Issuer: 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), Hamburg,
Düsseldorf; Freiverkehr in Berlin, Hannover, München,
Stuttgart
End of News DGAP News-Service
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DGAP-News: H&R WASAG AG: masters difficult economic conditions
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