H&R WASAG AG with a good start in financial year 2010
Largest single investment in the company's history starts in May
H&R WASAG AG has made a very good start in the current financial year, is investing substantially in future growth and is confident of being able to surpass the operating earnings from the previous year in 2010. The executive board confirmed this forecast in the supervisory board meeting of 25th March. Furthermore, the executive board and the supervisory board decided to propose an increased dividend of €0.45 to the shareholders’ meeting.
Financial statements for 2009 completed
The supervisory board approved the audited financial statements for 2009, which almost completely confirmed the figures that were disclosed in the announcement on 19th February. According to this, H&R WASAG AG increased the operating earnings (EBITDA) by 22.8% to €65.6 million in the financial year 2009, despite difficult economic conditions. The EBITDA margin improved considerably from 5.2% to 8.6%. The EBIT increased by 20.5% to €44.7 million and the group net profit after minorities increased by 113.7% to €25.0 million. The earnings per share increased to €0.83 (compared to €0.39 in the previous year). At €762.3 million, sales remained about 26% below the level of the previous year. This is essentially due to the lower annual average of crude oil prices that were passed on to the customer in the form of lower product prices. When comparing with the previous year, it should be noted that the earning figures for 2008 were adversely affected by the provision for an anti-trust fine amounting to €22.0 million.
Dividend proposal: €0.45 per share
The H&R WASAG AG executive board and supervisory board have decided to propose a dividend of €0.45 per ordinary share, five cent more than last year, for the financial year 2009 to the shareholders’ meeting on 27th May 2010. Based upon the year-end closing price 2009 of €14.98, this corresponds to a dividend yield of 3.0%. “The improved group earnings and the positive outlook for the current business year led us to propose an increased dividend. For the subsequent years, assuming the results again develop positively, we plan to continue our shareholder-friendly dividend policy,” says Gert Wendroth, chairman of the executive board.
Dynamic start in financial year 2010
The positive development in sales in the chemical-pharmaceutical segments continued in the first few months of the new year. "Despite the hard winter, the production and sales levels in January and February were substantially higher than in the previous year. At the same time, we are aiming to pass on the raw materials costs that have recently increased again to our customers in order to profit even more from the higher sales levels," says Niels H. Hansen, chief operating officer. In the smaller plastics segment (approximately 5% of the total turnover) restructuring efforts are showing the first successful results. However, a sustainable return to profit requires a medium-term positive development of the automobile supplier industry, who is still the most impor-tant customer. Based upon the overall positive trend in the first few months of the current financial year, the executive board confirms the aim of surpassing previous year operative earnings (EBITDA) of €65.6 million in the current financial year.
H&R WASAG AG is starting the largest single investment in the company's history
However, there are also signs pointing towards growth after the financial year 2010. In May, H&R WASAG AG will commence with the construction of a propane deasphalting plant that is scheduled to start production at the end of 2011. The largest single investment in the history of H&R WASAG AG - with a volume of €55.0 million - will further increase the processing depth of the refinery and will improve value creation. The plant will convert residues that are difficult to reuse created during the production process into higher-quality, environmentally-friendly products. From the financial year 2012, the executive board anticipates an additional EBITDA contribution of the unit amounting to between €12 million and €14 million annually.
Growth stimulus thanks to mandatory labelling of vehicle tyres from 2012
The company is expecting further growth stimulus thanks to the new Europe-wide mandatory labelling of vehicle tyres from 2012. As a result of the labelling, buyers will be provided with information concerning factors such as noise, rolling resistance or wet grip. The utilised plasticisers have a significant influence upon these factors. Based upon the high quality of the aromatic plasticisers manufactured by H&R WASAG AG, the company expects to be able to particularly benefit from the EU \"Tyre Label\" Regulation.
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