AMG Mining AG
Graphit Kropfmühl AG: Turnover jumps to EUR 60.7 million in the 1st half year; EBITDA of EUR 8.9 million; Investments of approx. EUR 2.5 million
Graphit Kropfmühl AG / Key word(s): Quarter Results Kropfmühl, Germany, 10 August 2011 — In the second quarter of 2011 the Graphit Kropfmühl group (DEUTSCHE BOERSE: 'GKR') was able to confirm the positive course of business at the beginning of the year. Demand proved stable in both business segments, even though the performance ratios of the first quarter could not be reached again. Compared to macroeconomic growth rates the group turnover in the second quarter increased disproportionately by 19.0 % to TEUR 29,773. After the record turnover of the first quarter, the total first half year compared to the same period of the previous year still showed a remarkable jump in turnover of more than 30 % to TEUR 60,671. Higher sales proceeds in the most important product fields and efficiency increases resulting from excellently utilised production capacities more than compensated increased costs on the procurement side. Despite higher selling, general and administrative expenses in relation to project costs for the exploration of raw material deposits in Mozambique and Brazil, and higher personnel expenses, the development of earnings therefore is highly satisfying.
1 Adjusted EBITDA before restructuring measures and impairing losses, expenses for recultivation and foreign exchange result
In the first half year 2011 this segment through higher sales volumes and higher sales prices generated a turnover increase of 28.5 % to TEUR 39,478. Altogether the sales volumes of silicon-metal increased by 3.2 % to 14,883 t. With RW filler products, by-products of silicon-metal production, a sales volume of 12,200 t means a 13.8 % increase compared to the previous year. Earnings ratios in the silicon-metal segment again clearly increased.
1 Adjusted EBITDA before restructuring measures and impairing losses, expenses for recultivation and foreign exchange result
Graphite segment The demand for natural graphite products still remains at a very high level. As a consequence, production capacities mostly were excellently utilised, which resulted in efficiency increases that, however, only partially compensated the effects of higher procurement prices. The gross profit clearly increased compared to the previous year, but the achieved gross profit margin remained lower than in the previous year despite the clear increase in turnover. Expenses for the securing of future raw material supplies relating to the projects in Brazil and Mozambique also burdened the earnings and resulted in an only disproportionately low increase of the adjusted EBITDA.
1 Adjusted EBITDA before restructuring measures and impairing losses, expenses for recultivation and foreign exchange result
Investments The graphite segment in the first half year 2011 invested an amount of TEUR 1,623 in new capacities to be able to meet the future demand resulting from the considerable growth potential in the field of construction chemistry. At the Kropfmühl plant the construction of an additional micronising line was therefore started in the first quarter to further increase competitiveness. Furthermore, additional micronising capacities were created in China, and the acquisition of a lubricant production line was concluded in Sri Lanka.
Outlook Based on the development in the first half year, on the current business situation, and on the forecasts for 2011 the group has raised its turnover forecast for the total year to more than EUR 110 million. Earnings ratios are expected to rise in line with the development of turnover, provided that the general economic environment remains stable. In the silicon-metal segment the price adjustments reached for the year 2011 should result in clearly improved turnover and profitability ratios. The graphite segment still remains under the impression of strongly increased procurement prices. Depending on the future development on the relevant markets, further adjustments may be necessary on the selling side, which would lead to a disproportionately high increase of the segment turnover. However, the profitability development of the graphite segment will not be able to keep pace with the development of turnover.
Financial calendar
Forward-looking statements
Information on the company End of Corporate News 10.08.2011 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 | ||
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 |
134934 10.08.2011 |