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,
"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,
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
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
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
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
*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
*2013Annual Shareholders' Meeting: Monday May 6, 2013
*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
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
+ 33 (0)1 58 47 29 89
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)).
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%
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Source: RECYLEX SA via Thomson Reuters ONE
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