H&R WASAG AG posts record result for 1st half of 2010
H&R Wasag AG benefited considerably from the economic recovery in the 1st half of 2010 and is continuing on its growth path for the full year. While sales revenue climbed by over 60 per cent to €537.9 million, the company more than doubled its earnings per share to €0.88. EBITDA soared by 53.9% to €51.4 million while EBIT growth far outstripped the increase in sales revenue, climbing 85.3% to €41.5 million. Consolidated net income grew even faster: the figure more than doubled to €26.3 million (1st half of 2009: €12.6 million). Based on these strong figures for the first half-year, the company has refined its forecast and anticipates EBITDA of between €85 million and €95 million for 2010.
Double-digit growth in earnings at Chemical-Pharmaceutical Segments
The Chemical-Pharmaceutical Raw Materials Domestic Segment grew its EBITDA by 50.4% to €38.5 million in the 1st half of 2010 (1st half of 2009: €25.6 million). This accounts for approximately three quarters of the total EBITDA. Considerably higher year-on-year sales volumes drove the increase in earnings. The refineries in Hamburg and Salzbergen operated at full capacity throughout the first six months of the year. "Project 40", the programme to expand capacity concluded in 2009, is now paying off in full. EBITDA climbed 50.6% to €12.2 million at the Chemical-Pharmaceutical Raw Materials International Segment thanks to the vastly increased business volume. Restructuring at the Plastics Division also bore fruit: following an operating loss of €–0.4 million in the 1st half of 2009, the segment posted slightly positive EBITDA of €0.7 million for the first six months of 2010.
Large-scale investment in Hamburg enhances value added
June 2010 saw the start of the largest single investment in the company's history – the new propane de-asphalting plant. At a cost of approximately €55.0 million, the project marks an important milestone in the implementation of the H&R WASAG Group's growth strategy. The facility will convert the residue created during the manufacturing process into higher-quality products, thus significantly boosting value added. Completion is scheduled for the 4th quarter of 2011. From the 2012 financial year, the plant is expected to contribute an additional €12 million to €14 million towards EBITDA. With the project, the company is continuing to pursue its strategy of achieving further growth in attractive niche markets.
Good 2nd half expected for 2010
Despite possible seasonal fluctuations in sales, H&R WASAG AG expects to see good demand for chemical-pharmaceutical raw materials again in the 2nd half of the year. In addition to this, base oil prices – which act as a reference point for a number of products from the Chemical-Pharmaceutical Segments – have continued to rise. Further progress is expected with the realignment of the Plastics Division. Based on the excellent course of business in the 1st half and the positive outlook for the 2nd half of the year, the company has refined its earnings forecast for the full year 2010. "At the beginning of the year, we predicted an operating result above last year's figure of €65.6 million. Assuming raw material costs remain stable, we now predict full-year EBITDA of between €85.0 million and €95.0 million," said Gert Wendroth, Chief Executive Officer at H&R WASAG AG.
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