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

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: <pre> 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 interests 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 </pre> * Previous year figures adjusted for adopting IAS 19R retrospectively <pre> 14 November 2013 Publication of the Q3 2013 Report </pre> Contact: H&R AG, Investor Relations / Communications, Ties Kaiser Neuenkirchener Stra�e 8, 48499 Salzbergen, Germany Phone: +49 40 43218-321, Fax: +49 40 43218-390 Email: 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 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 --------------------------------------------------------------------- 14.08.2013 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 --------------------------------------------------------------------- 225699 14.08.2013