DGAP-News: Slight improvement for H&R AG at end of second quarter of 2014

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| Source: EQS Group AG
DGAP-News: H&R AG / Key word(s): Half Year Results
Slight improvement for H&R AG at end of second quarter of 2014

14.08.2014 / 06:59

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Press release 

Slight improvement for H&R AG at end of second quarter of 2014

Salzbergen (Germany), 14th August 2014. The company H&R AG has slightly
improved its EBITDA for the first half of 2014, despite a drop in sales.
After operating profits of EUR 13.6 million in the first two quarters of
2013, the company's reported figure for the same period in 2014 was EUR
14.5 million. Domestic business obtained by its two refineries above all
showed a marked recovery, thereby reinforcing the effectiveness of measures
currently being applied.

H&R AG generated sales amounting to EUR 540.7 million between the start of
January and the end of June. This represents a drop of 8% with respect to
the higher sales of the same period of the previous year (first half of
2013: EUR 587.5 million). This drop can be traced back to a chain effect
caused by both prices and volume. Changes to the mode of operation of the
refinery in Hamburg, with particular reference to the use of a high-quality
raw material, led to lower production overall, albeit created a positive
influence to the distribution ratio of main and by-products. The H&R
Group's operating results (EBITDA) for the first two quarters of the 2014
fiscal year amounted, despite a downturn in sales, to a stronger EUR 14.5
million (first two quarters of 2013: EUR 13.6 million). This ratio exceeded
that of the same quarter of the previous year by almost 7%. Contract
manufacturing at the Salzbergen site also had a stabilising effect on
financial performance, leading in turn to improved results for Germany as a
whole. A stronger recovery was prevented by general pressures relating to
competition and prices, which affected H&R AG particularly in the area of
by-products.

Development of the Group's market segments
The Group's involvement in the German chemical/pharmaceutical raw materials
segment generated, as a result of new raw-material and operation mode
policies affecting refinery operations, a decrease of 9.5% in sales to
EUR 409.9 million. (First two quarters of 2013: EUR453 million). We were at
the same time pleased to report higher operating profits (EBITDA) in this
segment (accompanied by moderately improved base oil prices), amounting to
EUR 10.6 million. (Same two quarters of previous year: EUR 8.3 million).

Sales fell somewhat in the international chemical/pharmaceutical segment,
dropping by 2.1% to EUR 111.2 million (first two quarters of 2013: EUR
113.6 million). With virtually the same level of production, prices
pressures above all had an effect on sales in this segment. Operating
profit fell, in contrast to the figure for Germany, to EUR 6.8 million from
EUR 7.4 million for the previous year, and was below our expectations.
    
The drop of 16.9% to EUR 27.1 million (first two quarters of 2013: EUR 32.6
million), which constituted the biggest drop in sales, was attributable to
the plastics segment. The restructuring phase at the Coburg (Germany) site
led above all to sales and profits considerably below those of the same
period of the previous year. With its deficit of EUR 1.0 million (first two
quarters of 2013: EBITDA EUR 1.0 million), this segment had a detrimental
effect on overall results.

Financial performance of the company 
H&R AG was able, in the first two quarters of the 2014 fiscal year, to use
the liquidity at its disposal for proactive management purposes. Measures
relating to net working capital management, such as the servicing of
accounts payable and reductions in inventory, have had a corresponding
effect on cash flows. The balance sheet total has been reduced at the same
time, reflecting in an improved equity ratio.

H&R AG views its medium-term prospects in an optimistic light
The price pressures affecting by-products increased considerably in the
first half of 2014, and will continue to pose a challenge during the
remaining months of the year. H&R has addressed this subject in terms of
raw-materials management, with particular reference to the use of
higher-quality input materials. The proportion of by-products in the
overall product mix has been reduced. The Group is expecting significant
positive effects in terms of bottom-line results, despite the higher cost
of materials. Although our targets are ambitious in the light of the
earnings situation in the first half of 2014, we expect that results will
turn out noticeably better than those of the previous year.

For further details, please refer to the Group's half-yearly report for Q1
and Q2 of 2014, published today by our Investor Relations Department and
available as a PDF download from www.hur.com.

An overview of the key figures for the first two quarters of 2014:

<pre>

H&R Group key figures (in EURm)             1.1. -         1.1. -     Diff.
                                         30.6.2014     30.6.2013*
Revenue                                      540.7          587.5     -46.8
Operating result (EBITDA)                     14.5           13.6       0.9
EBIT                                           3.3            1.2       2.1
Earnings before taxes                         -3.7           -4.3       0.6
Group's net loss / surplus after              -2.7           -3.3       0.6
minority interests
Consolidated earnings per ordinary           -0.09          -0.11      0.02
share (EUR)
Operating cash flow                          -32.4           32.6     -65.0
Free cash flow                               -40.0           23.7     -63.7
                                         30.6.2014    31.12.2013*     Diff.
Balance sheet total                          552.3          594.7     -42.4
Group equity                                 186.4          189.2      -2.8
Equity ratio (%)                              33.8           31.8       2.0


</pre>

* Previous year's figures amended due to retroactive application of IAS 19R

<pre>

14th November 2014          Publication of report for third quarter of 2014


</pre>

Contact:
H&R AG, Investor Relations / Kommunikation, Ties Kaiser
Neuenkirchener Straße 8, 48499 Salzbergen
Phone.: +49 40 43218-321, Fax: +49 40 43218-390
Mail: Ties.Kaiser@hur.com 
www.hur.com  

H&R AG is a Prime Standard 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 ad-hoc communication.



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14.08.2014 Dissemination of a Corporate News, transmitted by DGAP - a
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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                                                
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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