- EBITDA up 33% at ââ??¬24.2 million
- Sales rise to ââ??¬254.0 million (1st quarter of 2009: ââ??¬159.4 million)
- Chemical-Pharmaceutical Raw Materials Domestic Segment achieves new sales volume record
- Largest single investment in the company's history initiated
Salzbergen, Germany, 12 May 2010. H&R WASAG AG started the new financial year with an outstanding 1st quarter. Its operating result (EBITDA) improved by 33% to ââ??¬24.2 million (1st quarter of 2009: ââ??¬18.2 million). EBIT came in at ââ??¬19.4 million (1st quarter of 2009: ââ??¬13.9 million) and the consolidated annual net profit was ââ??¬12.1 million, compared to ââ??¬8.5 million in the 1st quarter of last year. Earnings per ordinary share climbed by 42.9% to ââ??¬0.40 (1st quarter of 2009: ââ??¬0.28).
The company saw a particularly sharp rise in sales revenues, which soared 59.3% to ââ??¬254.0 million. \"Approximately two thirds of the increase in sales revenues is due to the considerably higher sales volume in the chemical-pharmaceutical division. One third is attributable to higher commodity costs, which prompted rising prices for crude oil-based specialities,\" said Gert Wendroth, Chief Executive Officer at H&R WASAG AG.
All segments record better operating results
With its operating result of ââ??¬18.8 million, the Chemical-Pharmaceutical Raw Materials Domestic Segment once again made the largest contribution towards the consolidated operating result (EBITDA), improving by 26% on the same quarter in the previous year. Developments in demand for the segment's main products were particularly positive. This enabled H&R WASAG AG to achieve a new sales volume record ââ?¬â?? the refineries in Hamburg and Salzbergen operated at full capacity throughout the quarter.
With a 73.3% rise taking its operating result to ââ??¬5.2 million, the Chemical-Pharmaceutical Raw Materials International Segment grew even more dramatically. \"The result provides impressive evidence of how our international segment is growing in importance. Focusing our international operations on the high-growth Asian market once again paid off,\" commented Chief Sales Officer Niels H. Hansen.
The Plastics Division began to benefit from restructuring measures and the acquisition of clients from the medical technology sector, posting a slight improvement in its operating result to ââ??¬0.3 million.
Large-scale investment in Hamburg refinery initiated
In early May, H&R WASAG AG initiated the largest single investment in its history, in that construction work began for a propane deasphalting plant, which will substantially boost value added for production at the Hamburg refinery. Costing approximately ââ??¬55.0 million, the plant is due to become operational in the 4th quarter of 2011. The project is expected to contribute an additional ââ??¬12 to 14 million to EBITDA per annum from 2012 onwards.
Outlook for 2010 confirmed
In the light of the strong 1st quarter, H&R WASAG AG reiterated its forecast of growing the Group's operating result vis-Ã? -vis last year (ââ??¬65.6 million). The high demand for products from the large chemical-pharmaceutical division continued at the beginning of the 2nd quarter of 2010. However, crude oil prices continued to climb sharply, which temporarily compromised margins.
This division is expected to benefit in the run-up to 2012, when new regulations come into force throughout Europe which require car tyres to be labelled with properties such as rolling friction and wear resistance. Label-free plasticisers from H&R WASAG AG help tyre manufacturers to improve these properties.
Following a loss in the previous quarter, the Plastics Division posted a modest operating profit. This reflects the initial successes achieved by realigning the division. However, given that the order situation has only improved moderately, it is too soon to interpret this as a turnaround in trend at the Group's smallest segment.
\"Thanks to the outstanding 1st quarter and the persistently positive development in sales volumes at the chemical-pharmaceutical division, we are optimistic about the remainder of the financial year,\" said Gert Wendroth.
Contact:
H&R WASAG AG, Investor Relations / Communications, Christian Pokropp
Am Sandtorkai 64, 20457 Hamburg, Germany
Tel.: + 49 ââ?¬â?? (0) 40-43218-321, Fax: + 49 ââ?¬â?? (0) 40-43218-390, Mail: Christian.Pokropp(at)hur-wasag.de
www.hur-wasag.com
H&R WASAG AG:
The SDAX-listed company H&R WASAG AG is active in the fields of development and manufacture of chemical-pharmaceutical specialty products based on crude oil, and in the production of precision plastic parts. In the individual divisions, the group company is positioned as a market and/or technological leader with excellent perspectives.
Forward-looking statements and forecasts:
This press release contains forward-looking statements. These statements are based upon current estimates and forecasts of the executive board as well as information that is available to the executive board at this point in time. They are not to be taken as guarantees of future developments and results. The future developments and results are much more dependent upon many factors. They contain various risks and uncertainties and are based upon assumptions that may prove to be inaccurate. We assume no obligation to update the forward-looking statements contained in this report.