H&R WASAG AG / Quarter Results
12.11.2008
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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- Q1-Q3: Sales increase by 33.3 percent to 809.9 million
- Adjusted operating earnings up by 58 percent in Q3
- Adjusted EBT at 19.5 million (Q3 2007 12.3 million)
- Business development compensates devaluation of inventories at year end
Salzbergen, 12 November 2008
In the economically turbulent third quarter of 2008, H&R WASAG generated
record sales of 314.6 million (Q3 2007: 202.1 million) and returned a
very positive operating result (EBITDA) of 27.8 million (Q3 2007: 17.6
million), adjusted for the 22 million provision for the cartel fine.
Beside the lower purchasing prices for feedstocks from August, also effects
from the capacity expansion 'Project 40' and the continuous optimization of
production processes had a positive impact. 'The negative trend seen in the
first months reversed in the third quarter, and this good result supports
our business model focussed on sustained and continuous earnings growth,'
explained Gert Wendroth, CEO of H&R WASAG AG.
Provision negatively impacting earnings
In the first nine months sales were up by almost 15 percent to 809.9
million (2007: 607.5 million). Adjusted for the mentioned provision,
EBITDA increased to 67.5 million (2007: adjusted for the disposal of
Explosives: 63.0 million) and earnings before tax (EBT) reached 47.4
million (2007 excluding explosives: 49.5 million). The provision for the
cartel fine issued by the EU Commission reduced 2008 earnings by 22
million. H&R WASAG AG is going to be challenging the reason for and amount
of the fine.
Financial crisis results in differing developments in divisions
Positive development was again driven by the positive operating development
of the division Chemical Pharmaceutical Raw Materials: with record sales of
771.9 million (2007: 550.3 million; + 40 percent) the division again
repeated its operating earnings (EBITDA) of 64.9 million from the
previous year (Q1-Q3 2007: 65.0 million) thanks to a strong third
quarter. This was mainly driven by lower feedstock prices from August.
The financial crisis has however had a negative impact on the Plastics
division. Lower incoming order levels from the automotive industry resulted
in operating earnings (EBITDA) of only 0.4 million (Q3 2007: 1.2
million). Based on the first nine months, this amounted to sales of 38.0
million (previous years period: 35.9 million) and EBITDA of 2.5
million compared to 4.1 million in 2007.
Adjusted earnings forecast 2008 remains in the range of 50 to 60
million despite devaluation of inventories
As a result of extreme volatilities in feedstock markets, the Board of H&R
WASAG AG plans to change the valuation method for finished and
semi-finished goods effective from the year end financial statements 2008.
In periods of falling purchasing prices the current valuation, based on
moving purchasing costs for input feedstocks during the reporting period,
may result in average purchasing prices which are far above the current
price level. Therefore the valuation of disposals at average annual prices
is to be replaced with a monthly average price. From today's point of view,
this would result in a negative inventory valuation effect in the
consolidated financial statement at year end, which based on current
feedstock prices could reach up to 15 million. Positive business
development, including after the third quarter, will most likely be able to
compensate this effect. This means that earnings before tax (EBT) adjusted
for the provision can be expected in the forecasted region of 50 million
to 60 million, assuming further stable economic development. 'We are
committed to achieving a more up-to-date and therefore more transparent
valuation for the capital market,' explained Wendroth.
Detailed information about current developments can be found in the
quarterly reports as at September 30, 2008, which will be available on our
Internet site under www.hur-wasag.com, for both review and download.
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 12.11.2008
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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 quarterly result
| Source: EQS Group AG