AMG Mining AG
Graphit Kropfmühl AG: Record turnover in the 1st quarter EUR 30.9 million – EBITDA EUR 4.6 million
Graphit Kropfmühl AG / Key word(s): Interim Report Kropfmühl, Germany, 11 May 2011 — In the first quarter of 2011 the Graphit Kropfmühl group (DEUTSCHE BOERSE: 'GKR') continued the successful development of the last fiscal year and reached a disproportionately high increase both in turnover and in earnings. In a highly dynamic economic environment both business segments were able to clearly improve their operative financial ratios. In both segments the very strong demand that has been continuing since the last year has resulted in a sustained increase of sales. In view of clearly increased raw material prices GK also was able to achieve higher sales prices. Compared to the same quarter of the previous year this development altogether resulted in an 42.9 % increase in turnover to EUR 30.9 million, which is the highest quarterly turnover in the history of the Graphit Kropfmühl group. The high utilisation of capacities in both segments cushioned the development of further increased procurement prices, so that the earnings ratios of the Graphit Kropfmühl group showed a disproportionately growth. The adjusted EBITDA amounts to EUR 4.6 million and has more than tripled compared to the previous year's quarter. The EBIT with EUR 3.9 million developed correspondingly and has increased more than tenfold compared to the low value of the previous year of EUR 0.4 million. The financial ratios for the group are as follows:
1 Adjusted EBITDA before restructuring measures, foreign exchange result, and expenses for recultivation The sales volume of silicon-metal increased by 12.4 % to 7,696 t. The chemical industry with a sales volume increase to 5,707 t again was the driving force for growth in this segment, whereas sales to customers in the aluminium industry with 1,989 t decreased compared to the previous year. Compared to the same quarter of the previous year the sales of both standard quality and special quality (Q 1) of the RW Filler clearly increased to 6,370 t, which compared to the previous year's quarter means an increase of 18.5 %. With 570 t the sales of so-called secondary silicon, however, clearly remained behind the previous year's figure. Driven by demand the prices for silicon-metal have clearly increased compared to the previous year, and a higher price level also could be realised for the special RW Filler quality Q 1. Average proceeds for the standard RW Filler quality and for secondary silicon, however, almost remained at the previous year's level. Increasing material and energy costs could be more than compensated by the price development and by the positive effects of excellent plant capacity utilisation. Earnings and profitability ratios in this segment increased disproportionately despite higher structural costs in production and an increase of selling, general and administrative expenses.
1 Adjusted EBITDA before restructuring measures, foreign exchange result, and expenses for recultivation
Graphite segment Compared to the previous year's quarter the customer sectors of dispersions and energy efficiency again made an above-average contribution to the jump in turnover. The field of traditional applications continued the development of 2010 and also reached a clear growth compared to the same quarter of the previous year. The field of customer solutions showed a comparatively moderate increase, whereas sales in the trading customer sector slightly remained behind the previous year's figure. In the first quarter of 2011 the continuing rise of procurement prices again was somewhat alleviated by achieved efficiency increases. As a result GK was able to improve the gross profit of the graphite segment. Earnings ratios, however, are burdened by higher personnel and project costs relating to raw material securing projects in Mozambique and Brazil, which resulted in a disproportionately low increase in the adjusted EBITDA.
1 Adjusted EBITDA before restructuring measures, foreign exchange result, and expenses for recultivation
Outlook Despite the expected great total demand for graphite globally, earnings prospects in the graphite segment will be burdened by increasing procurement prices. In the total year the necessary increases of sales prices will result in an additional growth of the segment turnover. The development of profitability, however, due to these burdens will not be able to keep up with the development of turnover. For the whole group we for the first time expect an annual turnover of more than EUR 100 million, provided that in the next quarters economic risk positions will not lead to unexpectedly strong market influences. Earnings ratios will clearly improve compared to 2010. Necessary investments that are intended to provide further rationalisation, energy saving, and capacity expansions, were resolved and initiated in the first quarter in order to guarantee the competitiveness of the Graphit Kropfmühl group also in the future by using state-of-the-art production technologies. In Kropfmühl GK started the construction of another energy-efficient micronising line that is planned to be put into operation in autumn 2011. In Pocking the modernisation of another arc furnace has been initiated. With a total investment volume of about EUR 6 million this measure will lead to an increase of capacity and at the same time ensure a reduced specific energy consumption in 2012.
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Information on the company End of Corporate News 11.05.2011 Dissemination of a Corporate News, transmitted by DGAP – a company of EquityStory 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: | Graphit Kropfmühl AG | |
Langheinrichstraße 1 | ||
94051 Hauzenberg | ||
Deutschland | ||
Phone: | +49 (0)8586/609-197 | |
Fax: | +49 (0)8586/609-111 | |
E-mail: | ir@gk-graphite.com | |
Internet: | www.gk-graphite.com | |
ISIN: | DE0005896005 | |
WKN: | 589600 | |
Listed: | Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, Hamburg, München, Stuttgart | |
End of News | DGAP News-Service |
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