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H&R AG publishes first quarter 2014 results

DGAP-News: H&R AG / Key word(s): Quarter Results
H&R AG publishes first quarter 2014 results

09.05.2014 / 07:07

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Press Release

H&R AG finishes Q1 2014 distinctly above previous year's equivalent quarter
results

Salzbergen, May 09, 2014. In the first quarter of 2014, H&R AG achieved
improved operating results (EBITDA). At EUR7.7 million, the first quarter
surpassed the results of the comparable first quarter of 2013 by almost
31%. This achievement was accomplished although Group sales for the first
three months were, at EUR282.6 million, 6.4% lower than in the previous
year.

In the first three months of financial 2014, Group sales of EUR 282.6
million were achieved, thus less than at the start of 2013 (first quarter
of 2013: EUR 301.8 million). At the same time, the operating result
improved significantly. To a great extent, this profits trend reflects the
effects from the conversion to contract production of the Salzbergen site.
At similar or even lower sales proceeds, the new configuration supports
more stable profit contributions.

Changes in Group Divisions
In the Group's Chemical-Pharmaceutical Raw Materials - National, sales
declined by 4.9% to EUR 219.3 million (first quarter of 2013: EUR 230.7
million). At the same time, with almost stable raw materials prices and
consistently weak base oil prices, earnings from operations (EBITDA) in
this segment improved to EUR5.5 million from EUR2.9 million). Base oil
prices, which have been rising since March, could provide positive
incentives for the segment in the further course of the year.

In the International Chemical-Pharmaceutical Division, the decline in sales
of 10.6% to EUR 53.3 million (first quarter of 2013: EUR 59.6 million) was
somewhat more evident. Because of the tense pricing situation, at the same
level of sales, almost all subsidiaries remained below their sales
contribution as compared to the prior year. The profits level especially
reflected foreign exchange effects, leading to an operating result (EBITDA)
of EUR 3.4 million, slightly weaker than the EUR 3.7 million in the same
period of the prior year.

Another sales decline was recorded in the Plastics segment: At EUR 14.1
million (Q1 2013: EUR 15.4 million), EBITDA receded with a deficit of EUR
0.6 million (Q1 2013: EUR 0.4 million). The improved figures from the
international sites could not compensate for the negative effects in
Germany.

Forecast for 2014 confirmed