DGAP-News: H&R WASAG AG reporting very positive business development in Q4 2008

H&R WASAG AG / Preliminary Results

20.02.2009 

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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*Write-downs on inventory in Q4 compensated by operating results 
*Earnings before tax reach EUR 47.4 million adjusted for cartel fine
*Sales exceed EUR 1 billion for the first time                             

(Note: All figures mentioned in this press release are preliminary and
unaudited)

Salzbergen, Germany, 20 February 2009
In Q4 2008, H&R WASAG AG was able to achieve above average sales,
compensating write-down on inventories of EUR 29.6 million, and still
return an operating result (EBITDA) of EUR 6.3 million. Driven by extremely
volatile raw material prices, H&R WASAG AG decided in autumn to base
valuation more closely on current market developments. A further decline in
raw material prices until year-end led to higher write-downs than initially
anticipated. 'Adjusted for additional write-downs on inventory, operating
results in Q4 came in at a record level and reflected the excellent
production and sales effort of the entire organisation,' explained Gert
Wendroth, CEO of H&R WASAG AG. Adjusted for the cartel fine provision,
earnings before tax for the full year reached EUR 47.4 million (previous
year EUR 59.8 million, excluding proceeds of the Explosives business). 'We
are very satisfied with the full year 2008 results considering the extreme
turmoil of crude oil markets,' added Wendroth. The increase in sales at H&R
WASAG AG by 29.7% to EUR 1.035 billion (previous year: EUR 0.798) was
mainly driven by higher price levels, pushing the company above the one
billion threshold for the first time.

Different business development at divisions

Growth achieved in 2008 was mainly driven by the division
Chemical/Pharmaceutical Raw Materials, which saw sales increase by 35.4
percent to EUR 988 million (2007: EUR 729 million). Operating earnings
(EBITDA) fell from EUR 81.1 million in 2007 to EUR 50.1 million as a result
of the provision for the cartel fine amounting to EUR 22 million and
write-downs on inventory.
Despite declining demand from the automotive industry sales in the Plastics
division reached EUR 47.6 million, almost unchanged against the previous
year (EUR 47.3 million). In the financial year 2008, EBITDA did however
decline to EUR 2.1 million (previous year: EUR 3.9 million) in the division
on the back of developments in the automotive sector. As a counter-measure
and in addition to sustained cost-cutting measures, the dependency on the
automotive sector is to be reduced and access to new business fields pushed
ahead.

Difficult conditions expected for the financial year 2009 

The global economic crisis has now reached a considerable extent in all
regions and industries. Also H&R WASAG AG is therefore expecting a more
difficult environment in the 2009 financial year, which could have a
negative impact on business after strong growth seen in past years. The
broadly-based product range and the fact that H&R WASAG supplies more than
100 sectors will have a stabilising effect in this more difficult
environment. Cost-cutting and efficiency boosting measures are also being
initiated.
'High quality standards, customer focus, and our commitment to continuing
to develop innovative products will not be influenced by the measures being
introduced,' explains Andreas Keil, CFO of H&R WASAG AG. 'These
characteristics, as well as our clear focus on niche markets in the
Chemical Pharmaceutical Raw Materials business, will contribute to further
enhancing our competitive position, even in a difficult environment,'
emphasizes COO Niels H. Hansen.

Upcoming dates:
March 30, 2009      Full Year 2008 Results
         Annual Press and Analyst' Conference
May 14, 2009       Q1 Interim Report 2009
May 28, 2009       Annual Shareholder Meeting in Hamburg
August 14, 2009     Q2 Interim Report 2009
November 12, 2009   Q3 Interim Report 2009


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 20.02.2009 
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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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