H&R WASAG AG / Final Results
30.03.2009
Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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* Adjusted for the cartel fine earnings before tax amount to EUR 48.0
million
* Sales exceed EUR 1 billion for the first time
* Capacity expansion project 40 completed in Q1 2009 as planned
* Chemical-Pharmaceutical division reporting 65% sales increase in Asia
* Dividend of EUR 0.40 proposed despite one-off effect from cartel fine
Salzbergen, Germany, 30 March 2009
In the financial year 2008, H&R WASAG AG reported earnings before tax (EBT)
of EUR 48.0 million adjusted for the cartel fine (previous year: EUR 59.8
million excluding the disposed Explosives division) despite difficult
conditions. Sales posted a record at EUR 1.035 billion (previous year: EUR
0.798 billion) which was mainly price-driven. 'The full year result is
very positive considering extremely volatile crude oil markets and the
downturn in economic development in the second half of the year,' explained
Gert Wendroth, CEO of H&R WASAG AG. 'This positive operating business
development on the one hand and the significant impacts from the cartel
fine provision on the other have prompted us to propose a dividend of EUR
0.40 per common share (previous year: EUR 0.80),' explained CFO Andreas
Keil.
The Chemical-Pharmaceutical Raw Materials division experiencing
particularly strong price-driven growth
With a 35.4% increase in sales up to EUR 987.6 million (previous year: EUR
729.3 million) the Chemical-Pharmaceutical Raw Materials division is the
driving force behind the group's significant growth in sales. This was
mainly due to increased prices in the course of the year, as well as slight
increases in production and unit sales in 2008. The international business
developed very positively with locations in Asia recording increases in
sales of 65%. Negative impacts came from the provision of EUR 22 million
for the cartel fine as well as crude oil prices affecting stock valuations
in Q4 2008.
The crisis in the automotive industry slowed growth in the domestic
Precision Plastics division with sales only increasing slightly from EUR
47.3 million to EUR 47.6 million thanks to international business
activities. Declining domestic volume resulted in lower EBITDA in the
division of EUR 2.1 million (previous year: EUR 3.9 million). The Board of
Management has already launched a cost-cutting program to counter the
negative development. Sales accounted for by high-growth customer segments
such as medical and control technology producers already increased slightly
in 2008. 'We are committed to continuing on this path,' emphasizes
Wendroth.
Capacity expansion program 'Project 40' completed as planned
H&R WASAG AG successfully concluded its capacity expansion program 'Project
40' in March 2009 on completing final construction measures. The project
was launched in 2007 with an investment volume of EUR 35 million and has
significantly increased capacity for major products in the
Chemical-Pharmaceutical Raw Materials division.
Next year H&R WASAG AG will probably be implementing the strategically
important follow-up project ('Golden Cut') which is dedicated to product
enhancement and refinement. 'In times of volatile oil markets, uncertain
sales forecasts and declining project costs we don't believe that the right
time for rolling out the project has come yet. Thanks to our solid capital
structure and detailed project plans we are however in a position to launch
the project quickly as soon as conditions improve,' explained CFO Andreas
Keil.
Growth prospects remain positive
In the first few months of the current financial year H&R WASAG AG was also
impacted by the global recession. Both divisions have recorded declines in
unit sales, even if the diversified customer structure in the
Chemical-Pharmaceutical Specialties division contributes to softening the
demand effects. The Board of Management reacted to the economic slowdown
early on by launching a number of cost-cutting measures. Measures include
introducing short-time work at the Plastics division from the beginning of
March in an effort to react quickly to low capacity utilization. The
company employing 1,340 people around the world however, is currently not
planning any redundancies. 'As we are anticipating further growth in the
medium-term we need our qualified staff. We are confident that we will be
able to weather the current downturn with short-time work,' emphasizes
Wendroth.
The Board of Management is positive about the medium and long-term growth
prospects. 'Thanks to having successfully completed the capacity expansion
project 'Project 40' an economic upturn will be reflected in considerably
higher earnings,' added Wendroth. COO Niels H. Hansen: 'We will also be
continuing our ambitious growth track in our international business
activities.' Given uncertainties in global markets H&R WASAG AG will not be
issuing concrete guidance for the current financial year. Despite the
development in the first few months being largely satisfactory, considering
the difficult conditions, it is not sufficient to offer a reliable
forecast.
Upcoming dates:
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
Additional information regarding H&R WASAG AG:
H&R WASAG AG is an SDAX-listed specialty chemicals company engaged in the
development and manufacture of crude oil-based chemical-pharmaceutical
specialty products, and in the production of precision plastic components.
The Group companies comprising the individual divisions enjoy excellent
positions as market and/or technology leaders.
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 30.03.2009
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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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DGAP-News: H&R WASAG AG reporting good full year result despite difficult conditions
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