DGAP-News: H&R AG accelerates intrayear recovery by end of Q2

DGAP-News: H&R AG accelerates intrayear recovery by end of Q2

DGAP-News: H&R AG / Key word(s): Half Year Results/Miscellaneous
H&R AG accelerates intrayear recovery by end of Q2

14.08.2013 / 06:59


H&R AG accelerates intrayear recovery by end of Q2, but fails to reach last
year's performance

Salzbergen, 14 August 2013. In the second quarter of 2013, H&R AG confirmed
its trend reversal with improved intrayear EBITDA. After EUR 5.9 million in
the first quarter of 2013, the second quarter contributed profits of EUR
7.7 million. However, the Company was unable to match the results recorded
in the first half of 2012 (EBITDA for the first six months of 2012: EUR
26.0 million). H&R AG only expects to see a distinct acceleration in the
positive trend it is experiencing once the newly defined measures take
effect in the further course of the year.

In the period from the beginning of January to the end of June, H&R AG
recorded sales in a total amount of EUR 587.5 million. Although the
business volume in the second quarter did not suffice to reach the same
levels as at the beginning of the year (first quarter of 2013: EUR 301.8
million), the higher EBITDA for the same period is proof of the improved
profitability of the Company's business. All in all, the operating result
(EBITDA) closed at EUR 13.6 million. There were also positive developments
as concerns cash flow: cash flow from operations rose by EUR 6.8 million,
and free cash flow increased by EUR 8.6 million.

Changes in Group Segments
In the Chemical and Pharmaceutical Raw Materials - Domestic Segment,
turnover decreased by 7.8 % to EUR 453.0 million (first half of 2012: EUR
491.5 million). At EUR 8.3 million, earnings from operations (EBITDA) for
these activities failed to meet the result for the same quarter of last
year (EUR 17.3 million). Given the approximately stable raw materials
prices and base oil prices that had only slightly recovered since the
beginning of 2013, the causes for this decline were primarily price and
volume effects in relation to our main products.

In the Chemical and Pharmaceutical Raw Materials - International Segment,
sales declined by 16.8% to EUR 113.6 million (first half of 2012: EUR 136.6
million), primarily due to lower demand. Because of the overall more stable
price situation, as had been the case in the previous quarter, the lower
proceeds had a lesser effect on the income statement than they did in the
Company's national business. At EUR 7.4 million as compared to EUR 9.6
million in the previous year, EBITDA was nonetheless lower than in the
first half of 2012.
The only sales increase in any of the Group's Segments was recorded by the
Plastics activities, with growth of 11.2 % to EUR 32.6 million (first half
of 2012: EUR 29.3 million). Encouragingly, profits followed the sales
trend:  at EUR 1.0 million (first half of 2012: EUR 0.6 million), EBITDA
significantly improved, even if only at a modest level.

Outlook conservative with optimistic medium-term prospects
After the end of the first six months, the outlook for the current
financial year remains conservative; more particularly, the positive
effects of measures partially already implemented and partially only just
introduced will only be felt in the course of the year. Based on the
information currently available, exceeding the operating profits of the
previous year would therefore appear unlikely. For 2014, on the other hand,
the Board expects slight improvements in EBITDA.

For further details, please refer to the Interim Report for the First Half
of 2013, published today and available in PDF format under the Investor
Relations tab on www.hur.com.

There follows an overview of the most important key figures for the first
half of 2013:

H&R Group - Key figures (in EUR         1/1 - 30/6/   1/1 - 30/6/  Variance
million)                                       2013         2012*
Sales revenue                                 587.5         640.1     -52.6
Earnings from operations (EBITDA)              13.6          26.0     -12.4
EBIT                                            1.2          14.3     -13.1
Earnings before taxes                          -4.3           4.9      -9.2
Group losses /earnings after minority          -3.3           3.7      -7.0
Group earnings per share (EUR)                -0.11          0.12     -0.23
Cash flow from operations                      32.6          25.8       6.8
Free cash flow                                 23.7          15.1       8.6
                                          30/6/2013   31/12/2012*  Variance
Balance sheet total                           622.3         623.1      -0.8
Equity                                        205.7         213.3      -7.6
Equity ratio (%)                               33.1          34.2       N/A

* Previous year figures adjusted for adopting IAS 19R retrospectively

14 November 2013                          Publication of the Q3 2013 Report

H&R AG, Investor Relations / Communications, Ties Kaiser
Neuenkirchener Straße 8, 48499 Salzbergen, Germany
Phone: +49 40 43218-321, Fax: +49 40 43218-390
Email: ties.kaiser@hur.com

H&R AG is an SDAX listed specialist chemicals company. It develops and
manufactures crude oil-based chemical and pharmaceutical products and
high-precision plastic parts.

Forward-looking statements and forecasts:
This press release contains forward-looking statements. These statements
are based on current estimates and forecasts made by the Executive Board
and the information available to the Board at this time. Forward-looking
statements should not be interpreted as guarantees that the projected
future developments and results will materialise. Future developments and
results are dependent on a range of factors. They comprise various risks
and imponderables and rest on assumptions which may prove incorrect. We do
not accept any obligation to update the forward-looking statements made in
this press release.

End of Corporate News


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Language:    English                                               
Company:     H&R AG                                                
             Neuenkirchener Str. 8                                 
             48499 Salzbergen                                      
Phone:       +49 (0)40 43 218 321                                  
Fax:         +49 (0)40 43 218 390                                  
E-mail:      investor.relations@hur.com                            
Internet:    www.hur.com                                           
ISIN:        DE0007757007                                          
WKN:         775700                                                
Indices:     SDAX                                                  
Listed:      Regulierter Markt in Düsseldorf, Frankfurt (Prime     
             Standard), Hamburg; Freiverkehr in Berlin, Hannover,  
             München, Stuttgart                                    
End of News    DGAP News-Service  
225699 14.08.2013                                                      
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