Earnings Release • May 10, 2011
Earnings Release
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Brussels, 10 May 2011 – 07 :00 AM CET www.recticel.com
Note: All comparisons are made with the first quarter of 2010, unless mentioned otherwise.
Total consolidated sales increased from EUR 334.7 million to EUR 359.6 million (+7.4%).
During the first quarter 2011, trading conditions were positive in all business lines, with the exception of Bedding. As expected, the polyurethane market has been subject to further significant raw material price increases. The profitability has been slightly impacted by the necessary lead time to pass the increases on to customers in most business lines.
Breakdown of sales by business line (unaudited)
| in million EUR | 1Qtr/2010 | 1Qtr/2011 | ∆ |
|---|---|---|---|
| Flexible Foams | 151,8 | 159,8 | 5,3% |
| Bedding | 80,8 | 78,9 | -2,3% |
| Insulation | 39,4 | 48,4 | 22,9% |
| Automotive | 78,0 | 88,1 | 12,9% |
| Eliminations | ( 15,3) | ( 15,6) | 2,1% |
| TOTAL | 334,7 | 359,6 | 7,4% |
Flexible Foams' sales increased by 5.3% to EUR 159.8 million. This was attributable to higher volumes in the division 'Technical Foams' which continues to benefit from the activity increase in all industrial markets.
Bedding sales decreased by 2.3% to EUR 78.9 million. Both the 'Brand' and the 'Non-brand' segment recorded slightly lower figures. The Group's business performance was particularly under pressure in Austria and Switzerland.
Insulation sales increased by 22.9 % to EUR 48.4 million and continued to benefit from the increased demand for high performing building insulation products, as well as the increased market penetration of polyurethane solutions.
After the traditionally weaker construction activity during the winter months, sales increased strongly as from February. Structural demand is expected to remain high as a result of stricter insulation standards, higher energy prices and ever growing awareness of the need for more and better insulation.
The Industrial Insulation division recorded better sales as well.
Automotive sales increased by 12.9% to EUR 88.1 million. Volumes improved in Interiors by +17.6% and in Proseat (the 51/49 joint venture between Recticel and Canadian group Woodbridge) by +12.2%. Interiors mainly supplies the premium car segment, which remained strong (both in Europe and the USA), and was further pulled by the demand in emerging economies.
On 31 March 2011, net financial debt (excluding non-recourse factoring/forfeiting programs) amounted to EUR 215.2 million (compared to EUR 158.7 million at 31 December 2010). The net financial debt has been mainly influenced by a seasonal working capital build-up. In addition the inventory build-up to cover a seasonal lack of capacity in Insulation and the impact of the raw material price cycle on receivables and inventories explain this increase.
Recticel confirms the guidance, given in March, for the current financial year. The Group expects its overall sales to further increase in 2011, and intends to compensate additional raw material price increases in 2011 through a combination of improved activity levels, adequate pricing policies and cost reduction measures.
***
This press report contains forecasts that entail risks and uncertainties, including with regard to statements concerning plans, objectives, expectations and/or intentions of the Recticel Group and its subsidiaries. Readers are informed that such forecasts entail known and unknown risks and/or may be subject to considerable business, macroeconomic and competition uncertainties and unforeseen circumstances that largely lie outside the control of the Recticel Group. Should one or more of these risks, uncertainties or unforeseen or unexpected circumstances arise or if the underlying assumptions were to prove to be incorrect, the final financial results of the Group may possibly differ significantly from the assumed, expected, estimated or extrapolated results. Consequently, neither Recticel nor any other person assumes any responsibility for the accuracy of these forecasts.
Annual General Meeting 2011 10.05.2011 Share lists ex-coupon 26.05.2011 Payment of dividend (coupon nr. 17) 31.05.2011 Announcement of the first half year results 2011 (before stock exchange opening) 30.08.2011 Third quarter trading update 2011 (before stock exchange opening) 10.11.2011
| RECTICEL - Olympiadenlaan 2, B-1140 Brussels (Evere) | |||
|---|---|---|---|
| PRESS | INVESTOR RELATIONS | ||
| Mr Jan De Moor | Mr Michel De Smedt | ||
| Mobile : +32 475 42 78 26 | Mobile: +32 479 91 11 38 | ||
| Tel: +32 2 775 18 95 [email protected] |
[email protected] |
Recticel is a Belgian Group with a strong European dimension, but also operates in the rest of the world. Recticel has 110 establishments in 27 countries.
Recticel contributes to daily comfort with foam filling for seats, mattresses and slat bases of top brands, insulation material, interior comfort for cars and an extensive range of other industrial and domestic applications.
Recticel is the Group behind well-known bedding brands (Beka®, Lattoflex®, Literie Bultex®, Schlaraffia®, Sembella®, Swissflex®, Superba®, Ubica®, etc.). Within the Insulation division high-quality thermal insulation products are marketed under the well-known brands Eurowall®, Powerroof®, Powerdeck® and Powerwall®.
Recticel is driven by technological progress and innovation, which has led to a revolutionary breakthrough at the biggest names in the car industry.
Recticel achieved sales of EUR 1.35 billion in 2010.
Recticel (NYSE Euronext: REC – Reuters: RECTt.BR – Bloomberg: REC:BB) is listed on NYSE Euronext in Brussels.
The press release is available in English, Dutch and French on the website www.recticel.com
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