DGAP-News: H&R AG / Key word(s): Quarter Results H&R AG reports fall in quarterly earnings despite record revenue 14.05.2012 / 06:59 --------------------------------------------------------------------- Press release H&R AG reports fall in quarterly earnings despite record revenue Salzbergen, Germany, 14 May 2012. Driven by robust demand and higher prices for crude oil-based speciality products, H&R AG posted a new revenue record of EURO 335.3 million in the 1st quarter of 2012 (Q1 2011: EURO 290.4 million). The operating result (EBITDA) of EUR18.9 million was lower than last year's figure of EURO 34.7 million, however. Consolidated net income (after minority interests) fell to EURO 6.6 million (Q1 2011: EURO 19.4 million). 'The fact that we saw a fall in the operating result despite an increase of some 15% in revenue is due to two factors. One is that last year's earnings were at a record level as a result of extraordinarily favourable operating conditions. The other is that in the reporting period our margins were squeezed by the sharp rise in the cost of raw materials', said Niels H. Hansen, Chief Executive Officer of H&R AG. Earnings developments diverge in the Group segments In the largest Group segment, Chemical-Pharmaceutical Raw Materials Domestic, revenue rose 13.6% to EURO 257.0 million (1st quarter of 2011: EURO 226.2 million). This trend was largely driven by prices. However, raw materials costs climbed even faster than product prices, temporarily prompting a sharp contraction in product margins during the reporting period. Because of this, the segment's operating result (EBITDA) fell a long way short of the very good EURO 28.7 million posted for the first three months of 2011, coming in at EURO 12.2 million. As in the domestic segment, the 22.2% increase in the international Chemical-Pharmaceutical Segment's revenue to EURO 72.7 million (1st quarter of 2011: EURO 59.5 million) was largely triggered by higher prices. Because very high-quality crude oil-based speciality products account for a larger percentage of this segment's product portfolio, rising feedstock prices have less of an impact here than on the domestic refineries, however. The foreign subsidiaries - especially the companies in Asia - are also benefiting from good economic developments at regional level. As a consequence, the operating result (EBITDA) increased by 29.3% to EURO 5.3 million, compared with EURO 4.1 million in the 1st quarter of 2011. Our Plastics Division recorded the steepest revenue growth of any Group segment. The 23.0% rise took revenue to EURO 15.0 million (1st quarter of 2011: EURO 12.2 million). In contrast to the Chemical-Pharmaceutical Segments, revenue growth in this segment was largely attributable to higher volumes thanks to strong demand. The operating result (EBITDA) for the Plastics Division also rose at a double-digit rate, up 15.3% to EURO 669 thousand (Q1 2011: EURO 580 thousand). Outlook for the year conservatively optimistic Orders in the Chemical-Pharmaceutical Segments remained strong at the beginning of the 2nd quarter. Margins returned to a more acceptable level once the prices for our crude oil-based speciality products had been adjusted to the higher feedstock costs as far as possible. The Plastics Division is continuing to benefit from strong demand and ongoing progress in its restructuring and realignment. Rising revenue and a higher operating result (EBITDA) are anticipated in this division in the full year 2012, too. Business developments at Group level in the full year 2012 are being regarded with conservative optimism. 'Although we have boosted earnings potential at both divisions, we feel that a repeat of the consolidated operating result (EBITDA) we posted last year seems ambitious, given the impact of feedstock prices on earnings and the uncertainty surrounding further economic developments. If the currently more optimistic economic forecasts for 2013 should prove correct, we would expect the consolidated operating result (EBITDA) for this period to improve again', said Niels H. Hansen. Detailed information on the latest developments can be found in the report for the 1st quarter of 2012, which is available online at www.hur.com under H&R AG. Upcoming dates: 14 May 2012 Publication of the report for the 1st quarter of 2012 31 May 2012 Annual Shareholders' Meeting in Hamburg 14 August 2012 Publication of the report for the 2rd quarter of 2012 14 November 2012 Publication of the report for the 3rd quarter of 2012 Contact: H&R AG, Investor Relations/Communications, Christian Pokropp Neuenkirchener StraÃe 8, 48499 Salzbergen, Germany Phone: +49 (0) 40 43218-321, Fax: +49 (0) 40 43218-390 Email: Christian.Pokropp@hur.com www.hur.com H&R AG: H&R AG is an SDAX listed specialist chemicals company. It develops and manufactures crude oil-based chemical and pharmaceutical products and high-precision plastic parts. Forward-looking statements and forecasts: This press release contains forward-looking statements. These statements are based on current estimates and forecasts made by the Executive Board and the information available to the Board at this time. Forward-looking statements should not be interpreted as guarantees that the projected future developments and results will materialise. Future developments and results are dependent on a range of factors. They comprise various risks and imponderables and rest on assumptions which may prove incorrect. We do not accept any obligation to update the forward-looking statements made in this press release. End of Corporate News --------------------------------------------------------------------- 14.05.2012 Dissemination of a Corporate News, transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------- Language: English Company: H&R AG Neuenkirchener Str. 8 48499 Salzbergen Germany Phone: +49 (0)40 43 218 321 Fax: +49 (0)40 43 218 390 E-mail: investor.relations@hur.com Internet: www.hur.com ISIN: DE0007757007 WKN: 775700 Indices: SDAX Listed: Regulierter Markt in Düsseldorf, Frankfurt (Prime Standard), Hamburg; Freiverkehr in Berlin, Hannover, München, Stuttgart End of News DGAP News-Service --------------------------------------------------------------------- 169470 14.05.2012
DGAP-News: H&R AG reports fall in quarterly earnings despite record revenue
| Source: EQS Group AG