Tessenderlo Group announces second quarter 2013 results impacted by weakness in Akiolis, lower volumes in PPS and limited margin contraction in Kerley, and adjusts 2013 forecast
(Thomson Reuters ONE) -
* Second quarter 2013 group revenue increased 7.5%; REBITDA decreased 8.4%
versus the same period a year ago. Second quarter loss recorded due to non-
recurring restructuring charges.
* Forecasts for 2013 adjusted to reflect continued pressure in Akiolis and
PPS.
* Commitment to executing announced strategy and capturing long term prospects
remains unchanged.
Tessenderlo Group had second quarter 2013 (2Q13) revenue of 542.4 million EUR,
an increase of 7.5% compared to the same period a year ago. REBITDA totaled
49.0 million EUR, a decline of 8.4% versus last year mainly due to weakness in
Akiolis and despite growth in Tessenderlo Kerley and Inorganics. Net financial
debt at the end of June 2013 was 250.9 million EUR, and benefited from cash
proceeds from divestments and lower working capital needs. Recurrent profit for
the second quarter was 11.2 million EUR, while the group recorded a loss for the
period 2Q13 of -36.2 million EUR, mainly due to non-recurring restructuring and
related charges.
Based on current information, Tessenderlo Group's best estimate today is that
REBITDA for the full year 2013 should be around 20% below 2012. Our estimates
are based on the following facts:
REBITDA for Akiolis in the second half of 2013 will be materially below last
year, due to the sharp increase in competition for collection of volumes in
France and subsequent margin pressure. A comprehensive plan to improve Akiolis'
performance is being implemented. While this process will take time, Akiolis has
overcome similar challenges in the past, and is committed to fully recovering
its market position and restoring profitability.
For Plastic Pipe Systems, construction activity is expected to remain weak,
particularly in the Netherlands, putting downward pressure on volumes and
REBITDA. While the group believes that this low level of activity is not
sustainable, persistent economic uncertainty is not allowing a recovery to take
hold. To bridge this challenging period, PPS management is focused on
preserving gross margins and structurally reducing fixed costs.
Tessenderlo Kerley's (TKI) first half results have been influenced by lower ATS
and KTS margins compared to the record first half of 2012, due to higher raw
materials and logistics costs which have not been passed on to customers.
Agriculture markets head into the second half of 2013 with limited visibility
in the near term. After a late start to the 2013 US spring planting season,
favorable weather conditions are expected to result in strong crop production
this season and softening crop prices. Against this background, growers are
becoming more cautious with their fertilizer purchases and as a result, TKI's
REBITDA for the second half of 2013 will be lower than last year. However, based
on solid agricultural fundamentals, TKI foresees continued profitable growth
prospects. To seize these opportunities, it has recently opened a new ATS plant
in Oklahoma, and is currently investing to add KTS storage and production
capacity in the Western US. Furthermore, Tessenderlo Kerley is opening up new
growth opportunities such as the long term agreement to supply thiosulfates to
Barrick Gold for one of their gold mines.
The decrease of group REBITDA for 2013 does not change management's view of the
attractive long term growth prospects in our chosen activities. Tessenderlo
Group remains fully committed to executing its strategy, as it has done since
2010. This includes implementing profit improvement actions; several are
currently running and will positively contribute to REBITDA in the coming
quarters as well as next few years. Secondly, the group will pursue selective
growth initiatives in its core activities, which have had resilient
profitability and returns for the past several years. Thirdly, the group will
continue its program to divest non-strategic assets. And finally, given the
secured funding in place and a strong focus on managing debt levels, the group's
balance sheet remains firmly under control. By further executing its strategy,
Tessenderlo Group will become a faster growing, higher return specialty group.
Tessenderlo Group is a worldwide specialty company, focused on food,
agriculture, water management and on valorizing bio-residuals. The group employs
about 6,200 people and is a leader in most of its markets, with a consolidated
revenue of 2.1 billion EUR in 2012. Tessenderlo Chemie NV is listed on NYSE
Eurolist by Euronext Brussels and is part of Next 150 and BEL Mid indices.
Financial News wires: Bloomberg: TESB BB - Reuters: TesBt.BR - Datastream: B:Tes
Media Relations Investor Relations
Kathleen IWENS Philip LUDWIG
+32 (0) 478 664 555 +32 2 639 16 58
This press release is available in Dutch, French and English on the corporate
website www.tessenderlogroup.com - under 'News & Media'
Hier kan je het volledige bericht in het Nederlands lezen:
http://hugin.info/133974/R/1725515/575452.pdf
Pour lire le communiqué de presse complet, cliquez ici:
http://hugin.info/133974/R/1725515/575469.pdf
To read the full press release in English, click here:
http://hugin.info/133974/R/1725515/575451.pdf
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Tessenderlo Group via Thomson Reuters ONE
[HUG#1725515]
Unternehmensinformation / Kurzprofil:
Datum: 29.08.2013 - 07:01 Uhr
Sprache: Deutsch
News-ID 291937
Anzahl Zeichen: 6495
contact information:
Town:
Brussels
Kategorie:
Business News
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