DGAP-News

Slight improvement for H&R AG at end of second quarter of 2014

DGAP-News: H&R AG / Key word(s): Half Year Results
Slight improvement for H&R AG at end of second quarter of 2014

14.08.2014 / 06:59

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Press release

Slight improvement for H&R AG at end of second quarter of 2014

Salzbergen (Germany), 14th August 2014. The company H&R AG has slightly
improved its EBITDA for the first half of 2014, despite a drop in sales.
After operating profits of EUR 13.6 million in the first two quarters of
2013, the company's reported figure for the same period in 2014 was EUR
14.5 million. Domestic business obtained by its two refineries above all
showed a marked recovery, thereby reinforcing the effectiveness of measures
currently being applied.

H&R AG generated sales amounting to EUR 540.7 million between the start of
January and the end of June. This represents a drop of 8% with respect to
the higher sales of the same period of the previous year (first half of
2013: EUR 587.5 million). This drop can be traced back to a chain effect
caused by both prices and volume. Changes to the mode of operation of the
refinery in Hamburg, with particular reference to the use of a high-quality
raw material, led to lower production overall, albeit created a positive
influence to the distribution ratio of main and by-products. The H&R
Group's operating results (EBITDA) for the first two quarters of the 2014
fiscal year amounted, despite a downturn in sales, to a stronger EUR 14.5
million (first two quarters of 2013: EUR 13.6 million). This ratio exceeded
that of the same quarter of the previous year by almost 7%. Contract
manufacturing at the Salzbergen site also had a stabilising effect on
financial performance, leading in turn to improved results for Germany as a
whole. A stronger recovery was prevented by general pressures relating to
competition and prices, which affected H&R AG particularly in the area of
by-products.

Development of the Group's market segments
The Group's involvement in the German chemical/pharmaceutical raw materials
segment generated, as a result of new raw-material and operation mode
policies affecting refinery operations, a decrease of 9.5% in sales to
EUR 409.9 million. (First two quarters of 2013: EUR453 million). We were at
the same time pleased to report higher operating profits (EBITDA) in this
segment (accompanied by moderately improved base oil prices), amounting to
EUR 10.6 million. (Same two quarters of previous year: EUR 8.3 million).

Sales fell somewhat in the international chemical/pharmaceutical segment,