DGAP-News: H&R AG publishes preliminary figures for financial year 2013

DGAP-News: H&R AG publishes preliminary figures for financial year 2013 

DGAP-News: H&R AG / Key word(s): Final Results/Preliminary Results
H&R AG publishes preliminary figures for financial year 2013

24.02.2014 / 10:00


Press Release 

H&R AG publishes preliminary figures for financial year 2013
  - Sales revenue minimally below last year's at EUR 1,214.4 million

  - EBITDA at EUR 32.6 million. 

  - Full year results burdened by Q3 2013 impairments  

(N.B.: All figures in this press release are provisional and have not yet
been audited)

Salzbergen, 24 February 2014. For all of 2013, H&R AG achieved total sales
of EUR 1,214.4, thus almost matching its prior year's result (2012: EUR
1,228.9 million). At the same time, operating results fell short of the
previous year's levels with EBITDA of EUR 32.6 million (2012: EUR 49.4

Mixed sales performance and results in the Divisions
At EUR 1,151.7 million, the Chemical-Pharmaceutical Raw Materials Division
fell just on 2% behind the previous year's result (2012: EUR 1,173.3 Mio.).
The amount corresponding to the sales of our main products was also lower.
In this connection, a substantial quantity effect resulted from the
conversion of the Salzbergen site to contract production. In the operating
business results area (EBITDA), the domestic business remained
characterised by sustained competitive and margin pressure, while on an
international basis margins remained more stable. Overall, however, the
operating result of EUR 37.1 million (previous year: EUR 53.3 million) did
not meet expectations.

The Plastics Division recorded an almost 13% higher volume of business and
increased its revenues from EUR 55.6 million to EUR 62.7 million. At the
same time, the higher capacity utilisation was also reflected in the
operating divisional results: With additional income of EUR 1.5 million now
leading to EUR 0.7 million, the Division's EBITDA was positive again (2012:
EUR -0.8 million).

In summary, results effects cause a clear fall in earnings
For the chemical industry in general, the past financial year was
characterised by fluctuations. In spite of a slight increase in sales,
chemical product prices eased as a result of strong competition.
For H&R AG, the goal for 2013 was primarily to reorganise the business for
a future stable development in view of the market challenges the Company is
faced with. As a response to the pricing and competitive situation,
structural and organisational changes were implemented in the form of the
contract production model, of far-reaching cost reduction measures and of
personnel changes at various levels of the organisation. In particular the
contract production approach and the related lower sensitivity to
fluctuating raw materials prices contributed to a stabilisation of the
profit situation.

At the same time the Company paid tribute to the continuing difficult
market situation with an adjustment of its goodwill at the Hamburg site.
These non-cash effects in the amount of EUR 12.1 million were first
reported in Q3 2013 and resulted in higher writedowns on the overall

In 2014, the Board will continue to support the measures already
implemented in 2013 with further profit improvement building blocks: In
this regard, some essential points of departure lie in the optimisation of
the energy and raw materials management at the Hamburg Refinery, which
delivers significant advantages by means of a more targeted selection of
the input materials for yield and value creation. Purchasing should be
assisted in this strategy by our newly negotiated financing conditions,
which should enable faster reaction possibilities and more freedom of
action than in the past. In addition, fixed costs should be significantly
reduced at all German sites. Provided that these measures contribute their
potential as planned, given a constant market environment the Board expects
a slight improvement of the 2014 operating results.

For a detailed presentation of its business performance, the Company refers
to the publication of its annual report on 31 March 2014.

Preliminary key figures for the H&R Group for the 2013 financial year
(in accordance with IFRS)

Key figures - H&R Group                            2013       2012      +/-
(in EUR million)

Sales revenue                                   1,214.4    1,228.9    -14.5
Earnings from operations (EBITDA)                  32.6       49.4    -16.8
(as % of sales)                                     2.7        4.1     -1.4
EBIT                                               -4.1       25.5    -29.6
Net loss after minority interests                 -14.0        0.5    -14.5
Group earnings per share (EUR)                    -0.47       0.02    -0.49
Operating cash flow                                88.9       84.7      4.2
Balance sheet total                               594.7      623.1    -28.4
Group equity                                      189.2      213.3    -24.1
Headcount (absolute)                              1,405      1,458      -53

Key figures by Division                            2013       2012
(in EUR million)
Sales revenue
Chem.-pharm. Raw Materials National               941.0      952.2    -12.5
Chem.-pharm. Raw Materials International          231.7      254.1    -22.4
Plastics                                           62.7       55.6      7.1
Chem.-pharm. Raw Materials National                20.6       33.1    -12.5
Chem.-pharm. Raw Materials International           16.5       19.3     -2.8
Plastics                                            0.7       -0.8      1.5

Upcoming dates:

31 March 2014                    Publication of the final figures for 2013
9 May 2014                       Publication of the Q1 2014 Report
13 May 2014                      General Meeting of Shareholders in Hamburg
14 August 2014                   Publication of the Q2 2014 Report
14 November 2014                 Publication of the Q3 2014 Report

H&R AG, Investor Relations / Communications, Ties Kaiser; Neuenkirchener
Straße 8, 48499 Salzbergen; Phone.: +49 40 43218-321, Fax: +49 40
43218-390; Mail: 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 ad-hoc communication 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 ad-hoc communication.

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  
253791 24.02.2014                                                      
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