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

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 million). 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 result. 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) <pre> 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 EBITDA 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 </pre> Upcoming dates: <pre> 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 </pre> Contact: H&R AG, Investor Relations / Communications, Ties Kaiser; Neuenkirchener Stra�e 8, 48499 Salzbergen; Phone.: +49 40 43218-321, Fax: +49 40 43218-390; Mail: ties.kaiser@hur.com www.hur.com H&R AG: 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 --------------------------------------------------------------------- 24.02.2014 Dissemination of a Corporate News, transmitted by DGAP - a company of EQS Group AG. The issuer is solely responsible for the content of this announcement. DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------- Language: English Company: H&R AG Neuenkirchener Str. 8 48499 Salzbergen Germany 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