AMG Mining AG
Graphit Kropfmühl AG: Upbeat revenue of EUR 30.1 million recorded in Q1 2012; Earnings of EUR 3.9 million slightly down on previous year mark
Graphit Kropfmühl AG / Key word(s): Quarter Results Kropfmühl, Germany, 15 May 2012 — Graphit Kropfmühl Group (DEUTSCHE BOERSE: 'GKR') recorded a recovery in business development in both business segments during the first quarter of 2012 following a weak final quarter in 2011. Consolidated revenue of EUR 30,118 thousand was posted in the first quarter 2012, falling only slightly short of the corresponding figure in the previous year. As expected, the Group was unable to match the excellent profitability of 2011. Adjusted EBITDA came in at EUR 3.9 million in line with expectations. The caution exercised by our customers in the second half of 2011 eased somewhat in the first quarter 2012 in both business segments. Compared to the strong first quarter in the previous year, consolidated revenue was down 2.5 %, totalling EUR 30,118 thousand. As expected, earnings figures also fell short of the strong earnings posted in the previous year. The higher energy and raw materials costs in both business segments impacted profitability, as did one-off effects. Earnings before interest and taxes (EBIT) was recorded at EUR 3,281 thousand. An increased loss on currency translations resulting from the weak Euro also impacted the EBT figure, which came in at EUR 2,703 thousand.
1 Adjusted EBITDA before restructuring measures and impairing losses, expenses for recultivation and foreign exchange result
Silicon-metal business segment All key earnings and profitability figures for the Silicon-metal business segment are presented in the table below.
1 Adjusted EBITDA before restructuring measures and impairing losses, expenses for recultivation and foreign exchange result
Graphite business segment While demand from the construction chemicals sector emerged during the middle of the first quarter in the previous year, the sustained cold weather up to the end of February 2012 delayed development in the period under review. The figures from Q1 2011 also contained one-off revenue from a change in the logistics arrangements with an important customer. The trend towards increasing global demand for graphite products remains intact, and not only in the construction chemicals industry. As a result, we anticipate significantly stronger revenue in this segment in the second quarter. Margins in the Graphite segment were depressed by higher procurement prices for raw materials and process materials relative to the previous year. In addition, reduced capacity utilisation on the back of anticipated lower sales led to a comparatively higher impact from fixed costs. The expenses entailed in preparing to restore and recommence mining activities in Kropfmühl were partially offset by lower sales, administration and other expenses in this segment. 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
In the Graphite segment, a major project launched last year was completed on schedule with the commissioning of new milling capacities at the start of the year in Kropfmühl. In addition, preparatory work began on resuming mining operations in Kropfmühl. Intensive efforts continued with regards to exploring deposits in Mozambique and further project costs were capitalised as intangible assets.
Outlook The excellent key figures from the previous year will likely not be achieved. Higher raw materials and energy costs are impacting the margins in both business segments. In addition, purchases made in foreign currencies will put pressure on margins due to the strong US dollar, although major items are already hedged using currency derivatives. The exploration and development projects will also result in cost items which impact earnings.
Investor relations: Tender offer from AMG affects share price development
Annual General Meeting: Rescheduled
Financial calendar
Forward-looking statements
About the Company End of Corporate News 15.05.2012 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 |
169769 15.05.2012 |