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Tessenderlo Group nv — Earnings Release 2014
Oct 29, 2014
4010_10-q_2014-10-29_ec340761-509c-4820-a740-9c00c5c7c1fd.pdf
Earnings Release
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Brussels, 29 October 2014 Press release
Regulated information1
Tessenderlo Group Third quarter 2014 trading update
Key Events
- On September 17th 2014, Tessenderlo Group announced a proposed capital increase. Since the attendance quorum was not reached at the first extraordinary shareholders meeting ("EGM") held today, a second EGM will be convened to be held on November 18th, 2014.
- Tessenderlo Kerley Inc. ("TKI") will build a new ammonium thiosulfates plant (Thio-Sul®) in East-Dubuque (Illinois). This new plant will allow TKI to maintain its market position in Thio-Sul® in the US and is expected to become operational in the second half of 2016.
- Within the Industrial Solutions segment, the THIO-GOLD®-300 plant at Barrick's Goldstrike site (Nevada) has been commissioned at the end of September 2014 to supply chemicals for the gold leaching process.
Strong performance in 3Q14 driven by the Agro segment and cost management initiatives throughout the group.
| Million EUR | 3Q14 | 3Q13 | % Change |
|---|---|---|---|
| Revenue group | 338.7 | 415.1 | -18.4% |
| - Revenue Other segment | -1.9 | -88.0 | |
| Revenue at comparable scope2 | 336.8 | 327.1 | 3.0% |
| Rebitda group | 30.7 | 25.8 | 19.0% |
| - Rebitda Other segment | -0.2 | -6.7 | |
| Rebitda at comparable scope2 | 30.5 | 19.1 | 60.2% |
| Net financial debt | 210.3 | 232.7 | |
| Notional net debt | 297.2 | 321.1 |
1 The enclosed information constitutes regulated information as defined in the Royal Decree of 14 November 2007 regarding the duties of issuers of financial instruments which have been admitted for trading on a regulated market.
2 Comparable scope includes the following businesses:
- Agro: Tessenderlo Kerley Core (fertilizer activities), Tessenderlo Kerley International (fertilizer activities outside North America), NovaSource (crop protection activities) and Sulfates
- Bio-valorization: Akiolis and Gelatin
- Industrial Solutions: Plastic Pipe Systems, Mining & Industrial, Water Treatment, MPR/ECS and Sulfur Derivatives
Other segment includes the businesses sold or ended since January 2013: Compounds, Organic Chlorine Derivatives, Phosphates and Profiles
Revenue
At comparable scope, revenue of the three core segments Agro, Bio-valorization and Industrial Solutions, rose by 3.0% compared to prior year results. The slight decrease of revenue in the operating segments Bio-valorization and Industrial Solutions was more than offset by the revenue increase in the Agro segment.
Rebitda
The Rebitda at comparable scope increased by 60.2% compared to prior year results. The strong performance is driven by current favorable market conditions in the Agro segment. Industrial Solutions had another quarter of moderate profit growth. Bio-valorization continued its negative trend compared to 2013. Furthermore the group's result is impacted positively from ongoing cost improvement initiatives.
Net financial debt
At the end of September 2014, group net financial debt stood at 210.3 million EUR, versus 258.9 million EUR at the end of December 2013, resulting in a leverage of 1.7x at the end of 3Q14. The decrease of the net financial debt is mostly driven by the higher operational results. Capital expenditure amounted to 17.9 million EUR in the third quarter versus 23.2 million EUR in the previous year.
Outlook
Based on the current assumptions and in view of the seasonality of the business, the group anticipates the 4Q14 Rebitda group to be slightly above 4Q13 Rebitda group.
The net financial debt at the end of the year is expected to be slightly lower than the net financial debt at the end of December 2013.
The group continues to implement commercial and operational improvement programs. It does not anticipate any material recovery of volumes and margins in the Bio-valorization segment in the foreseeable future.
Financial calendar
Full Year Results 2014 March 11, 2015 Annual General Meeting of Shareholders June 2, 2015
Tessenderlo Group is a worldwide specialty company, focused on food, agriculture, water management and on valorizing bio-residuals. The group employs about 5,000 people and is a leader in most of its markets, with a consolidated revenue of 1.8 billion EUR in 2013. Tessenderlo Chemie NV is listed on NYSE Eurolist by Euronext Brussels and is part of Next 150 and BEL Mid indices. Financial News wires: Bloomberg: TESB BB – Reuters: TesBt.BR – Datastream: B:Tes
Media Relations Investor Relations Lars Vervoort Kurt Dejonckheere +32 2 639 16 74 +32 2 639 18 41
[email protected] [email protected]
This press release is available in Dutch and English on the corporate website www.tessenderlogroup.com - under 'News & Media'