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Nabaltec AG — Earnings Release 2009
May 26, 2009
5430_rns_2009-05-26_2fd1c89f-8817-4eea-a8ca-abc4f524ff91.html
Earnings Release
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Corporate | 26 May 2009 10:00
Nabaltec AG: First Quarter 2009
Nabaltec AG / Quarter Results
Release of a Corporate News, transmitted by DGAP - a company of EquityStory
AG.
The issuer / publisher is solely responsible for the content of this announcement.
Nabaltec AG: First Quarter 2009
- Very difficult conditions in key industries affect Nabaltec AG's business
- Revenues down 35.8% in the first quarter of 2009, to EUR 16.3 million
- Cost-cutting measures yield EBIT of EUR -1.8 million
- Development of the new 'Additives' business unit proceeding according to
plan
- Outlook unchanged
Schwandorf, 26 May 2009 - In an extremely tough environment, Nabaltec
Group's business took a step backwards and revenues were down by EUR 25.4
million, or 35.8%, to EUR 16.3 million. This development can be attributed
to the general weakening in global demand, although the decline in revenues
was mitigated by price and currency effects. 'Demand in our market and in
our key industries is very modest right now. Nevertheless, we believe that
we have been able to emerge with our market position and market share fully
intact' said Gerhard Witzany, a member of the Management Board of Nabaltec
AG.
Nabaltec's two business divisions, 'Functional Fillers' and 'Technical
Ceramics,' were equally affected by the tough market conditions. Revenues
of functional fillers, particularly halogen-free flame retardants, fell by
38.4% in the first quarter, due primarily to the worldwide slump in the
construction and plastics industry, which affected Nabaltec in the form of
weaker demand in the cable & wire and insulation industry. Revenues in the
'Technical Ceramics' business division fell by 30.5%, due above all to
sharply weaker demand in the refractory industry, which is itself
determined primarily by global steel production.
Nabaltec's revenues fell at a particularly steep pace in Germany and other
European countries, where the impact of the economic crisis was felt most
acutely in the first quarter of 2009. Revenues decrease in the US and RoW
was not as drastic. Overall, however, global sales were down by at least
double digits, something which has never happened before in Nabaltec's
entire history.
Nabaltec Group's gross profit (as a percentage of total performance)
improved by 2.6% between the first quarter of 2008 and the first quarter of
2009, to 50.3% (up from 47.7%). A major reason for this improvement is
Nabaltec's ability to cushion the blow of imminent supplier price increases
by deliberately building up stocks of raw materials in advance in the
fourth quarter of 2008, as well as raising its own prices. In absolute
figures, gross profit fell from EUR 12.2 million to EUR 7.2 million.
Operating profit (EBIT) was affected by the steep decline in revenues,
falling to EUR -1.8 million, down from EUR 1.6 million in the first quarter
of 2008. Nabaltec has cut spending sharply in all major areas, and will
continue its efforts to cut costs. Both business divisions contributed
equally to the net loss, paralleling the revenues trend and sliding into
the red. Earnings after taxes and minority interests were EUR -2.7 million
in the first quarter of 2009, down from EUR 0.8 million in the first
quarter of 2008.
Development of the new 'Additives' business unit continues to proceed
according to plan, as the scope of the construction work, investments and
costs have all turned out as expected. Industrial-scale production and
marketing of the additives are scheduled to begin in the fourth quarter of
2009. Net cash flow from investment activity was EUR -4.5 million, after
setting off against pro rata investment grants. About one half of
investments went towards construction of the Schwandorf CAHC production
site, for the 'Additives' business unit, and another 50% went towards
production facilities and machinery for the business unit 'Flame
Retardants' and business division 'Technical Ceramics'.
A turnaround in demand for eco-friendly flame retardants, materials for
technical ceramics and ceramic bodies is not yet in sight, although the
worst may be over. The course of business at the start of the second
quarter does not yet point to a sustained recovery, given that Nabaltec's
key consumer industries are still in bad shape. In addition to cutting
costs, Nabaltec will continue its long-running efforts to boost earnings.
Depending on general market conditions, Nabaltec Group's goal continues to
be to raise its EBIT margin into the double digits, but this will only be
possible if the flame retardant and technical ceramics markets resume their
long-term growth trends.
Editorial note:
This press release, as well as the company's report for the first quarter
of 2009, can be viewed on the company's website at www.nabaltec.de.
About Nabaltec AG
Nabaltec AG, with registered office in Schwandorf, a chemicals business
which has received multiple awards for innovativeness, manufactures,
develops and distributes highly specialized products based on aluminum
hydroxide ('ATH') and aluminum oxide, as well as other raw materials, on an
industrial scale through its 'functional fillers' and 'technical ceramics'
divisions. The company's product range includes flame-retardant fillers for
the plastics industry, used e.g. in cables, tunnels, airports, high-rise
buildings and electronic devices, as well as base materials for use in
technical ceramics, the refractory industry and catalysis. Unlike
halogenated flame-retardant fillers, the products manufactured by the
company's 'functional fillers' division contain no hazardous substances and
do not require separate disposal. Rather, the company's flame-retardant
fillers actually decrease the development of fumes hazardous to human
health and the environment in the event of fire. Nabaltec maintains
production sites in Germany and the US and plans to continue to consolidate
its market position by expanding capacity, further optimizing processes and
quality and making strategic extensions to its product range. On the
strength of its specialty products, the company strives to attain not just
the quality leadership, but also the market leadership in each
segment.
Contact:
Heidi Wiendl
Nabaltec AG
Phone: +49 9431 53-202
Fax: +49 9431 53-260
E-mail: [email protected]
Frank Ostermair
Better Orange IR & HV AG
Phone: +49 89 8896906-14
Fax: +49 89 8896906-66
E-mail: [email protected]
26.05.2009 Financial News transmitted by DGAP
Language: English
Issuer: Nabaltec AG
Alustraße 50-52
92421 Schwandorf
Deutschland
Phone: +49 9431 53-0
Fax: +49 9431 53-260
E-mail: [email protected]
Internet: www.nabaltec.de
ISIN: DE000A0KPPR7
WKN: A0KPPR
Listed: Freiverkehr in Berlin, Düsseldorf, München, Stuttgart; Entry
Standard in Frankfurt
End of News DGAP News-Service