- Especially due to the price of crude oil, turnover falls to ââ??¬ 159.4million (Q1 2008: ââ??¬ 229.1 million)
- EBITDA margin increases to 11.4 % (Q1 2008: 9.3 %)
- EBITDA at ââ??¬ 18.2 million (Q1 2008: ââ??¬ 21.2 million)
- Approval issued for sili ca sand mining
Salzbergen, 14 May 2009
In extremely difficult circumstances, H&R WASAG AG increased the EBITDA margin to 11.4 % (Q1 2008: 9.3 %) in the 1st quarter. Although the company had already partially passed on the falling raw materials costs to the customers, in the 1st quarter it was possible to significantly compensate for the drop in turnover due to previously fixed price agreements with the customers. While turnover fell by 30.4 % to ââ??¬ 159.4 million, the operating earnings clearly fell disproportionately by comparison. At ââ??¬ 18.2 million, EBITDA was only 14.2 % below the figure for the previous year. EBIT reached ââ??¬ 13.9 million (Q1 2008: ââ??¬ 17.3 million), and the annual surplus for the group came in at ââ??¬ 8.5 million (Q1 2008: ââ??¬ 11.0 million), with the result per share at ââ??¬ 0.28 after ââ??¬ 0.36 in the 1st quarter of 2008. \"The chemical-pharmaceutical segments were still profiting at the start of the quarter from price agreements with customers that were made on the basis of higher crude oil prices,\" says Gert Wendroth, Chairman of the Executive Board at H&R WASAG AG.
Economic crisis affects divisions to varying degrees
The Chemical-Pharmaceutical Raw Materials Division therefore initially recorded a good margin level for crude oil-based specialty products at the beginning of the quarter. However, the falling sales prices over the course of the quarter - while crude oil prices were once again increasing slightly - worsened the revenue situation considerably. The production of the groups' own refineries was readjusted to the poor demand resulting from the state of the market. The \"Project 40\" capacity-expansion project, which was only just successfully completed in the 1st quarter of 2009, has thus not yet been able to display its full effect. Wendroth says, \"The investment decision will still pay off in full, just as soon as the demand for crude oil-based specialty products goes up again.\"
An increase in orders is already becoming perceptible.
The considerably smaller Plastics Division suffered significantly worse under the market downturn. The slump in orders, particularly in the automotive business, brought turnover down to ââ??¬ 8.9 million (Q1 2008: ââ??¬ 13.0 million). Cost reduction measures such as the introduction of reduced working hours have cushioned the effects on the business result, however. Despite the considerable reduction in turnover, the EBITDA still stood at ââ??¬ 0.1 million (Q1 2008: ââ??¬ 1.2 million).
Approval obtained for mining deposits of silica sand
After a complex application process, H&R WASAG AG has finally obtained the licence for the overall operations plan to mine deposits of silica sand on the property owned by the group at Haltern am See. This licence is an essential prerequisite in obtaining further licences for sand mining and processing. The company will investigate the various options for the extraction of the deposits. \"We will consider carefully, and select the technical solution that creates the most value for our shareholders,\" explains Financial Director Andreas Keil.
Cautious outlook for the fiscal year 2009
The current slim margin level for many products of the Chemical-Pharmaceutical Raw Materials Division leaves a repetition of the very good results achieved in the 1st quarter looking very ambitious from today's perspective...
\"For the second half of the year, however, we are once again assuming that margins and sales figures will be increasing both domestically and internationally,\" says Niels H. Hansen. The considerably smaller Plastics Division, by contrast, is anticipated to suffer throughout the entire fiscal year under the slump in demand, particularly from the automotive industry. Despite the efficiency-boosting and cost reduction measures, an improvement of the situation there is expected in 2010 at the earliest.
Upcoming dates:
May 28, 2009
Annual Shareholder Meeting in Hamburg
August 14, 2009
Q2 Interim Report 2009
November 12, 2009
Q3 Interim Report 2009
Contact:
H&R WASAG AG, Investor Relations / Communications, Christian Pokropp
Am Sandtorkai 64, 20457 Hamburg, Germany
Tel.: +49 - (0) 40-43218-321, Fax: +49 ââ?¬â?? (0) 40-43218-390, Mail: Christian.Pokropp(at)hur-wasag.de
www.hur-wasag.com
Additional information regarding H&R WASAG AG:
H&R WASAG AG is an SDAX-listed specialty chemicals company engaged in the development and manufacture of crude oil-based chemical-pharmaceutical specialty products, and in the production of precision plastic components. The Group companies comprising the individual divisions enjoy excellent positions as market and/or technology leaders.