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
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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
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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
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169470 14.05.2012
DGAP-News: H&R AG reports fall in quarterly earnings despite record revenue
| Source: EQS Group AG