RECYLEX SA : RECYLEX SA: FIRST QUARTER 2013 SALES Sales down due to the scheduled maintenance shutdown of the main lead smelter Suresnes, May 2, 2013: The Recylex Group (NYSE Euronext Paris: FR0000120388 - RX) today reported sales for the three months to March 31, 2013 of €99.8 million, down 17% on the first three months of 2012. The breakdown of consolidated sales by business line for the first quarter of 2013 was as follows: Consolidated sales by business line (unaudited) (In millions of euros) March 31, 2013 March 31, 2012 Change (%) Lead 69.4 90.1 -23% Zinc 21.4 21.6 -1% Special Metals 5.0 5.0 0% Plastics 4.0 3.3 +24% Total 99.8 120.0 -17% Yves Roche, Chairman and Chief Executive Officer of the Recylex Group, commented: "During the first three months of 2013, the Recylex Group's sales were 17% lower than in the same period of 2012, mainly due to the scheduled three-week shutdown of the main lead smelter in Nordenham, Germany. As anticipated, the shutdown adversely affected sales for the Lead Segment, even though the rise in lead prices over the period and our productivity gains offset a small part of this impact. While the Group's industrial performance in terms of production levels remained solid across all business segments, the climate remained highly competitive in sourcing of recyclables, and this has put pressure on the Group's margins." 1.Metal price trends for the three months to March 31, 2013 Lead and zinc prices were highly volatile in the first quarter of 2013. While the average price of lead was higher and the price of zinc was stable in the first three months of 2013 by comparison with the same period in 2012, the price of both metals dropped sharply during the month of March 2013. Average prices for the quarter were as follows: (€ per ton) 1^st quarter 2013 1^st quarter 2012 Change (%) Lead 1,741 1,597 +9% Zinc 1,539 1,544 0% 2.Breakdown of consolidated sales to March 31, 2013 relative to March 31, 2012 Consolidated sales were down 17% year-over-year to €99.8 million in the first quarter of 2013. *Lead: sales down 23% During the first three months of 2013, the Lead Segment generated 70% of consolidated sales. Sales dropped by 23% owing to the sharp decline in volumes sold following the scheduled three-week maintenance shutdown of the main smelter in Nordenham in March 2013, and also owing to an unfavorable basis of comparison due to the one-off sale of a lot of lead concentrates in the first quarter of 2012 (for about €8 million). Adjusted for this one-off sale of concentrates, sales for the Lead Segment were down by a more moderate 15%. *Zinc: sales down 1% Zinc segment sales accounted for 21% of consolidated sales in the first three months of 2013. They edged down by 1% on the same period in 2012, with virtually stable zinc prices and a mixed performance by segment. The scrap zinc recycling business was again adversely affected by weak demand for zinc oxides in Europe, particularly in the tire sector. Conversely, in Waelz oxide production, the plants that recycle dusts from electric arc furnaces operated at full capacity owing to adequate supplies. *Special Metals: sales stable Special Metals sales represented 5% of consolidated sales in the first quarter of 2013. They were stable relative to the first three months of 2012, with sales of high-purity arsenic up slightly and sales of germanium down on the first quarter of 2012. *Plastics: sales up 24% Plastics sales accounted for 4% of consolidated sales in the first quarter of 2013. They increased by a robust 24% by comparison with the same period in 2012. The Group benefited from a jump in sales volumes, primarily in France but also in Germany, as well as a slight rise in the average selling price of polypropylene. This solid performance is attributable mainly to attracting new clients in France, where the C2P-France subsidiary began to harvest the fruits of the commercial efforts it initiated in 2012. 3.Other highlights in the first quarter of 2013 *Ongoing litigation relating to Metaleurop Nord SAS* former employees As part of the claims for compensation filed in 2010 by 192 former managerial and non-managerial employees of Metaleurop Nord SAS who were not party to the initial claims lodged in 2005 (and for which the judgment of the Douai Appeal Court is now final), the Industry Section of the Lens Labor Court referred the cases of 137 former non-managerial employees of Metaleurop Nord to a hearing on Tuesday, June 4, 2013. In addition, on January 15, 2013, the Management Section of the Lens Labor Court decided to include €50,000 in damages and €400 in costs for each of the 48 unprotected former managerial employees and €30,000 in damages and €400 in costs for one unprotected former managerial employee (for a total of €2.4 million) in the liabilities of Recylex SA. The Company appealed against these decisions, which suspends their enforcement. However, the Lens Labor Court dismissed claims from six former protected managerial employees. * A document summarizing the development of legal proceedings against Recylex SA can be found on the Recylex Group website (www.recylex.fr - News - Legal proceedings schedule). *Search for external funding In order to anticipate the funding of its cash requirements for 2014 and 2015 concerning the execution of its continuation plan and the rehabilitation of the L'Estaque site, Recylex SA has initiated with a specialized financial advisory firm, a search for external funding. 4.Financial communication schedule Next event: *2013Annual Shareholders' Meeting: Monday May 6, 2013 Next publication: *Second-quarter 2013 consolidated sales: Thursday July 25, 2013 ************************************* Recycle, Transform, Enhance With operations in France, Germany and Belgium, Recylex is a company specializing in recycling lead and plastic (mainly from scrap automobile and industrial batteries), recycling zinc from particles from electric steel mills and scrap, and producing zinc oxides and special metals, primarily for the electronics industry. The Recylex Group has close to 675 employees and generated consolidated sales of €471 million in 2012. Further information about Recylex is available from its website www.recylex.fr ************************************* Press/Investor contact: Gabriel Zeitlin + 33 (0)1 58 47 29 89 email@example.com Disclaimer: This press release contains regulated quarterly financial information for the Recylex Group as defined in Article L. 451-1-2-IV of the French Monetary and Financial Code and Article 221-1 of the AMF General Regulation. This press release may contain forward-looking statements that do not constitute forecasts regarding results or any other performance indicator, but rather trends or targets. These statements are by their nature subject to risks and uncertainties as described in the Company's annual report available on its website (www.recylex.fr).). Further information about Recylex is available from its website (www.recylex.fr)). APPENDICES 1.Quarterly trend in metal prices (euros per ton) 1^st quarter 2013 1^st quarter 2012 FY 2012 Lead 1,741 1,597 1,603 Zinc 1,539 1,544 1,514 2.Recylex SA sales (€ million) 1^st quarter 2013 1^st quarter 2012 Change (%) Lead business sector 22.9 17.8 +28% Services to Group companies 0.3 0.3 - Total sales 23.2 18.1 +28% To view the PDF file, click here ------------------------------------------------------------------------------ This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients. The owner of this announcement warrants that: (i) the releases contained herein are protected by copyright and other applicable laws; and (ii) they are solely responsible for the content, accuracy and originality of the information contained therein. Source: RECYLEX SA via Thomson Reuters ONE HUG#1698860
RECYLEX SA : RECYLEX SA: FIRST QUARTER 2013 SALES
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