AMG Mining AG
Graphit Kropfmühl AG: Revenue up by 4.2% to EUR 63.2 million; Earnings (adjusted EBITDA) recorded at EUR 8.5 million
Graphit Kropfmühl AG / Key word(s): Half Year Results Kropfmühl, Germany, 9 August 2012 — Graphit Kropfmühl Group (TICKER SYMBOL: 'GKR') was able to increase Group revenue by 4.2% on the previous year period to EUR 63,201 thousand. Adjusted EBITDA came in at EUR 8,500 thousand and was around 4.6% down on the previous year. In the first half of 2012, revenue recorded highly satisfactory development within the Graphit Kropfmühl Group. Catch-up effects from the weaker previous quarters even led to new record revenue of EUR 42,050 thousand in the Silicon-metal business segment. Strong revenue development in the Asia/Pacific region supported revenue of EUR 21,151 thousand in the Graphite business segment, which was only slightly below the excellent level of the previous year.
The negative impact from the economic developments in the Eurozone was, however, felt by the GK Group. The operating earnings figure was impacted by a change in the product mix in both business segments as well as lower capacity utilisation of production sites in the Graphit business segment compared to the previous year. The effects of the Euro crisis and the strong US Dollar are also reflected in the higher procurement costs for raw materials sold in USD. Earnings before interest and taxes (EBIT) including special costs came in at EUR 6,003 thousand, some 17% down on the previous year mark.
1 Adjusted EBITDA before restructuring measures and impairing losses, expenses for recultivation and foreign exchange result
Silicon-metal business segment However, the product mix changed substantially within the business segment. The sales volume and revenue for silicon-metal is up on the previous year, while sales of RW filler products were slowed by the long frosty period and the current fall in demand in applications for the construction industry. The sale of secondary silicon was around one third higher than the previous year in the first half of the year and supported the positive revenue development. The changed product mix, higher costs for the required raw materials and technical influences led to a fall in profitability despite the increase in total revenue. Adjusted EBITDA was down by around 3% to EUR 6,876 thousand. All important earnings and profitability key figures from the Silicon-metal business segment are presented in the following table.
1 Adjusted EBITDA before restructuring measures and impairing losses, expenses for recultivation and foreign exchange result
Graphite business segment Compared to the previous year, operating earnings were impacted by higher raw material procurement prices. The strength of the Dollar had a particularly strong impact on margins. The one-off expenses and costs for recommencement and start-up of mining operations at the Kropfmühl site are completely included in the operating result in the first half of the year and contained within the profitability figures. Adjusted EBITDA was recorded at EUR 1,624 thousand and therefore fell 10.9% short of the previous year mark. One-off effects of around EUR 696 thousand from group restructuring costs, expenses incurred on the back of the flood damage as well as legal advisory costs due to the merger and squeeze out proposal of the majority shareholder are all removed from the adjusted EBITDA figure. EBIT for the first six months came in at only EUR 115 thousand including these one-off and special costs. The substantial fall in EBIT year-on-year by 87.9% is due to the one-off effects and special costs listed above. All key earnings and profitability figures for the Graphite business segment are presented in the table below.
1 Adjusted EBITDA before restructuring measures and impairing losses, expenses for recultivation and foreign exchange result
Investments In the Graphite segment, a major project begun last year was completed on schedule at the start of the year with the commissioning of new milling capacities in Kropfmühl. The recommencement of graphite mining at the Bavarian site was marked with a celebration on 21 June 2012 in front of 250 invited guests from the worlds of politics and industry. From now on, graphite mining at the Kropfmühl mine will contribute to covering the raw materials requirements for producing high quality graphite for Graphit Kropfmühl AG's customers. The largest individual measure included in the investment was around EUR 225 thousand in the conveyor belt system for connecting the mine to the processing plants in Kropfmühl. At Graphite Týn spol. s.r.o. in the Czech Republic, around EUR 107 thousand was invested in an on-site expandable graphite facility in the first half of the year, which extends the value creation depth in this important product area.
Outlook In terms of earnings, we will not be able to achieve the high key figures of last year. Higher raw materials and energy costs are impacting the margins in both business segments. In addition, the exploration and development projects will form significant cost items in the results. Acquisitions calculated in foreign currencies are also exerting additional pressure on the operating margins due to the strong US dollar. The special expenses and one-off costs will also be reflected in the full year results.
Investor relations: Purchase offer from AMG affects share price development AMG Mining AG informed the Management Board of Graphit Kropfmühl AG on 1 June 2012 that the majority shareholder of Graphit Kropfmühl AG intended to open negotiations regarding the conclusion of a merger agreement which would see Graphit Kropfmühl AG merge with AMG Mining AG. Since this time, AMG Mining AG has confirmed and underlined its desire to exclude the minority shareholders. With its correspondence dated 10 July 2012, the company communicated to the Management Board of Graphit Kropfmühl AG its desire to have the Annual General Meeting of Graphit Kropfmühl AG resolve on the transfer of shares held by minority shareholders to AMG Mining AG in return for cash compensation totalling EUR 31.92 per individual share certificate in Graphit Kropfmühl AG in connection with a merger of Graphit Kropfmühl AG with AMG Mining AG. In the merger agreement, it stated that in connection with the merger, the remaining shareholders of Graphit Kropfmühl AG are to be excluded pursuant to Sec. 62 Para. 5 Sentence 1 of the German Transformation Act in conjunction with Secs. 327a et seq. of the German Stock Corporation Act (so-called squeeze-out merger). The Annual General Meeting of Graphit Kropfmühl AG is taking place on Monday 27 August 2012 at Munich Conference Centre – Hanns Seidel Stiftung, Lazarettstraße 33, 80636 Munich, Germany. All documents on the merger as well as all information on the Annual General Meeting including possible additional motions and countermotions are available in the Investor Relations area of our website at www.gk-graphite.com.
Financial calendar
Forward-looking statements
About the Company End of Corporate News 09.08.2012 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 | ||
Germany | ||
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 |
181035 09.08.2012 |