Graphit Kropfmühl AG / Final Results 18.03.2009 Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- On 4 March 2009 the Supervisory Board approved the audited annual financial statements of Graphit Kropfmühl AG and the consolidated financial statements. The annual financial statements for the fiscal year 2008 are hereby confirmed. The Graphit Kropfmühl group closed the fiscal year 2008 with clearly increased sales and earnings. The escalating financial crisis with its subsequent effects on the real economy, however, influenced the group's business development in the last quarter. The growth rates that we had achieved until 30 September could no longer be maintained due to the drop in sales in the last two months. With consolidated sales of EUR 90.5 million our expectations and forecasts were fulfilled even in this difficult environment. The increase of EUR 7.4 million or 8.9 % primarily was borne by the silicon-metal segment with EUR 7.0 million. The graphite-segment contributed EUR 0.4 million. The earnings ratios of the group increased disproportionately. Earnings before interest, taxes, depreciation and amortisation, and restructuring measures (adjusted EBITDA) amounted to EUR 9.7 million after EUR 7.8 million in the previous year and thus increased by 24.4 %. Earnings before interest, taxes and restructuring measures (adjusted EBIT) increased by 40.0 % to EUR 7.0 million. Despite the excellent balance sheet profit the Board of Directors and the Supervisory Board suggest not to distribute a dividend for fiscal year 2008. The common objective of all the shareholders must be to further strengthen the company's equity. This especially is true in view of the insecure business development in 2009 that is characterised by the general economic situation. For the group the financial ratios are as follows: Group 2006 2007 2008 Change Total sales euro mill. 75.3 83.1 90.5 8.9 % Foreign-country share of in % 36.6 36.7 36.1 total sales Gross profit 1 euro mill. 10.4 13.0 15.2 16.9 % EBITDA 1 euro mill. 5.8 7.8 9.7 24.4 % EBIT 1 euro mill. 2.9 5.0 7.0 40.0 % EBT euro mill. 1.4 3.2 4.8 50.0 % Consolidated earnings euro mill. 2.5 2 1.9 3.5 84.2 % for the year Cashflow from ordinary euro mill. 4.9 4.3 4.4 2.3 % business activities Investments euro mill. 1.8 4.3 7.1 65.1 % Balance sheet total euro mill. 59.4 61.1 70.9 11.6 % Stockholders equity euro mill. 19.3 21.0 23.8 13.3 % Equity ratio in % 32.3 34.3 33.6 Net debt euro mill. 17.5 17.1 19.3 13.0 % Employees (31December) 666 714 600 - 16.0 % Profitability 2006 2007 2008 Change EBITDA margin in % 7.7 9.3 10.7 EBIT margin in % 3.9 6.1 7.7 Return on sales in % 3.3 2.3 3.9 Return on equity in % 12.8 9.0 14.7 Silicon-metal segment 2006 2007 2008 Change Sales euro mill. 48.5 54.0 61.0 13.0 % Segment share of total in % 64.4 65.0 67.4 sales EBITDA 1 euro mill. 3.2 4.2 7.0 66.7 % EBIT 1 euro mill. 2.4 3.3 6.0 81.8 % EBT euro mill. 1.6 2.6 5.3 > 100.0 % Employees (31 December) 110 107 108 0.9 % Graphite segment 2006 2007 2008 Change Sales euro mill. 26.8 29.1 29.5 1.4 % Segment share of total in % 35.6 35.0 32.6 sales EBITDA 1 euro mill. 2.6 3.6 2.7 - 25.0 % EBIT 1 euro mill. 0.5 1.7 1.0 - 41.2 % EBT euro mill. - 0.2 0.6 - 0.5 o. A. Employees (31 December) 556 607 492 - 18.9 % Share 2006 2007 2008 Change Earnings in euro 0.86 0.66 1.21 83.3 % Cashflow in euro 1.69 1.49 1.52 2.0 % Dividend in euro 0.00 0.00 0.00 3 0.0 % 1 Earnings ratios before restructuring measures, previous year's figures adapted to uniform group accounting principles 2 Tax refund claims: euro 1.1 million in 2006 3 Proposal Considerable improvement of the silicon-metal segment In the year 2008 we reached total sales of EUR 61.0 million in the silicon-metal segment, which means that this segment contributed 67.4 % to the group sales. Due to the sales increase of EUR 7.0 million which is disproportionally high, the share in the group sales increased by another 2.4 % . As a result the earnings ratios of the silicon-metal segment clearly improved last year. Earnings before interest, taxes, depreciation and amortisation (EBITDA) increased to EUR 7.0 million, which is a growth of EUR 2.8 million. Due to our high investment activities depreciations on tangible assets clearly increased. After considering depreciations of EUR 1.0 million (previous year. EUR 0.8 million) the EBIT is EUR 6.0 million, after EUR 3.3 million in the previous year. The EBIT margin increased from 6.2 % to 9.8 %. Graphite segment The development of the graphite segment clearly is influenced by the decreasing dynamics of the economy in the course of the year. In the first months of 2008 an exceptionally great demand resulted in a temporary unavailability of various graphite grades on the market and in a drastic price increase for such grades. Freight rates also drastically increased and reached historically high levels. The fourth quarter of 2008, and especially the months of November and December, however, were characterised by a distinct drop of sales. Especially our customers from the automotive sector noticeably changed their order patterns. As a result the graphite segment, after a good start with sales that developed as expected, could not reach the set sales target for the total year. The achieved total sales of EUR 29.5 million just were not sufficient to reach the intended jump to over EUR 30 million. Due to the weak fourth quarter, earnings before interest, taxes, depreciation and amortisation, and restructuring measures (adjusted EBITDA) remained behind the previous year's figures and reached EUR 2.7 million after EUR 3.6 million in the previous year. Course of business 2009 The current economic crisis has a noticeable effect on both segments. At present it is very difficult to make any statements concerning the course of business, and any such statements are tainted with great uncertainty. In the first half year of 2009 we expect a weak demand for our products. The further course of business can not yet be sufficiently predicted at present, because is essentially depends on the future course of the financial and economic crisis, and on the implementation and effectiveness of the resolved economic stimulus programs. In the current situation, however, we altogether expect a rather declining business volume. We will continue to meet this development with capacity adaptations. In the first quarter of 2009 these measures already will lead to a further staff reduction in the graphite segment by 80 employees in Asia. For the time being we will furthermore limit investments to an absolutely necessary level. We expect that the decreasing business volume will be reflected in the sales and earnings figures of the Graphit Kropfmühl group. In the total year 2009 it will no longer be possible to reach the previous year's sales and earnings figures. The interim report describing the course of business in the 1st quarter 2009 will be published on 13 May 2009. The Board of Directors Kropfmühl, 18 March 2009 Financial Calendar Annual Report 2008 27 March 2009 Interim report 1st quarter 2009 13. May 2009 UBJ - Investment Conference, Hamburg 14. May 2009 Annual General Meeting, München 10 June 2009 Interim report 1st half year 2009 12. August 2009 German Equity Forum 9 - 11 November 2009 Interim report 3rd quarter 2009 11 November 2009 Forward-looking statements This press release contains statements about future developments that are based on currently available information and may involve risks and uncertainties, the result of which may be that the actual results differ from the forward-looking statements. Statements about future developments must not be understood as guarantees. Future developments and events rather depend on a variety of factors, they contain various risks and imponderabilities and are based on assumptions that might turn out to be incorrect. For example, these include unforeseeable changes of the general political, economic, and social conditions. Information on the company Graphit Kropfmühl AG is a specialist for the production of silicon-metal and a globally leading supplier of refined natural graphite, with locations in Europe, Asia and Africa. The company that is listed in the Prime Standard (ISIN: DE0005896005) provides its customers with silicon-metal and graphite solutions for various versatile applications. Silicon-metal is used in various industries such as chemical, aluminium, semiconductors and solar cells. Graphite is used in various highly sophisticated applications such as carbon brushes, lubricants, and in the sinter industry and is gaining continuously increasing importance in the chemical industry, for example in thermal insulation panels. DGAP 18.03.2009 --------------------------------------------------------------------------- Language: English Issuer: Graphit Kropfmühl AG Langheinrichstraße 1 94051 Hauzenberg Deutschland Phone: +49 (0)8586/609-197 Fax: +49 (0)8586/609-111 E-mail: ir@gk-graphite.com Internet: www.gk-graphite.com ISIN: DE0005896005 WKN: 589600 Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, Hamburg, München, Stuttgart End of News DGAP News-Service ---------------------------------------------------------------------------
DGAP-News: Graphit Kropfmühl AG: Sales increase 2008 by 8.9 % to euro 90.5 million; Consolidated earnings 2008 (EBIT) increase by 40.0 % to euro 7.0 million
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