Kemira Oyj's Interim Report January-March 2015: Performance continued to improve
(Thomson Reuters ONE) -
Kemira Oyj
Stock Exchange Release
April 24, 2015 at 1.30 pm (CET+1)
This is a summary of the January - March 2015 Interim report. The complete
January - March 2015 Interim report with tables is attached to this release and
available at www.kemira.com/investors.
* Revenue increased 4% to EUR 553.0 million (529.9) supported by favorable
currency exchange rates. Revenues in local currencies, excluding
acquisitions and divestments remained flat.
* Operative EBITDA increased 15% to EUR 66.4 million (57.5) with a margin of
12.0% (10.9%).
* Earnings per share decreased to EUR 0.16 (0.28). Comparable period included
a capital gain of EUR 37 million related to the divestment of formic acid
business.
* Kemira maintains its outlook for 2015.
Kemira's President and CEO Jari Rosendal:
"Kemira's year started according to plan. The revenue in the first quarter
increased by 8%, excluding the impact of the divested formic acid business in Q1
2014. Operative EBITDA margin improved from 10.9% to 12.0% in Q1 2015. The
strengthened U.S. dollar was the main reason for revenue growth. Nearly 40% of
Kemira's revenue is either directly U.S. dollar-based or linked to the U.S
dollar, like the Chinese renminbi.
Growth in the Paper segment was solid in the first quarter, supported by
favorable currency exchange rates and stable organic growth. Organic growth was
driven by increased sales of new innovative solutions to our packaging board and
paper customers, thus improving their operational efficiency as well as their
end-product quality. In addition, pulp chemical deliveries to Montes del Plata
pulp mill in Uruguay continued in line with the ramp up of the new mill.
In the Oil & Mining segment, demand for our products for US shale operations has
slowed down in Q1 due to significant reduction in the drilling and fracking
activity in the region. Uncertainty around the US shale operations is expected
to continue at least for the next couple of quarters. Strong U.S. dollar
alleviates the situation to some extent but reaching topline growth in the Oil &
Mining segment will be challenging in 2015. In the longer term, we remain
optimistic about the growth in the business.
I am pleased with the continued good progress in the Municipal & Industrial
segment. The segment's revenue has stabilized after the restructuring period,
and profitability has improved substantially, over 30% in the first quarter of
2015.
The closure of AkzoNobel's paper chemical business acquisition is now expected
to take place in Q2 2015, due to the pending approval from the competition
authority in Ukraine. Our readiness to start the integration is very good.
I consider Kemira to be well positioned to focus on growth with clear strategic
objectives, customer-driven innovation, responsible business practices, and
engaged and skilled professionals."
KEY FIGURES AND RATIOS
EUR million Jan-Mar 2015 Jan-Mar 2014 2014
------------------------------------------------------------------------
Revenue 553.0 529.9 2,136.7
------------------------------------------------------------------------
Operative EBITDA 66.4 57.5 252.9
------------------------------------------------------------------------
Operative EBITDA, % 12.0 10.9 11.8
------------------------------------------------------------------------
EBITDA 65.2 77.7 252.9
------------------------------------------------------------------------
EBITDA, % 11.8 14.7 11.8
------------------------------------------------------------------------
Operative EBIT 39.1 36.3 158.3
------------------------------------------------------------------------
Operative EBIT, % 7.1 6.9 7.4
------------------------------------------------------------------------
EBIT 37.8 54.3 152.6
------------------------------------------------------------------------
EBIT, % 6.8 10.2 7.1
------------------------------------------------------------------------
Share of profit or loss of associates 0.2 0.0 0.2
------------------------------------------------------------------------
Financing income and expense -7.5 -5.3 -30.7
------------------------------------------------------------------------
Profit before tax 30.5 49.0 122.1
------------------------------------------------------------------------
Net profit 26.4 43.1 95.8
------------------------------------------------------------------------
Earnings per share, EUR 0.16 0.28 0.59
------------------------------------------------------------------------
Operative earnings per share 0.13 0.15 0.63
------------------------------------------------------------------------
Capital employed* 1,466.2 1,460.0 1.427.7
------------------------------------------------------------------------
Operative ROCE* 11.0 10.8 11.1
------------------------------------------------------------------------
ROCE* 9.3 4.0 10.7
------------------------------------------------------------------------
Capital expenditure 27.0 25.6 145.1
------------------------------------------------------------------------
Cash flow after investing activities 16.0 130.3 75.2
------------------------------------------------------------------------
Equity ratio, % at period-end 48 50 51
------------------------------------------------------------------------
Gearing, % at period-end 49 30 42
------------------------------------------------------------------------
Personnel at period-end 4,285 4,267 4,248
------------------------------------------------------------------------
*12-month rolling average (ROCE, % based on the reported EBIT)
Definitions of key figures are available at www.kemira.com > Investors >
Financial information. Comparative 2014 figures are provided in parentheses for
some financial results, where appropriate. Operative EBITDA, operative EBIT,
operative earnings per share and operative ROCE do not include non-recurring
items.
KEMIRA'S FINANCIAL TARGETS FOR 2017 AND OUTLOOK 2015 (UNCHANGED)
Kemira will continue to focus on improving its profitability and operative cash
flow. The company will also continue to invest in order to secure future growth
to serve selected water intensive industries.
The company's financial targets for 2017 are:
* revenue EUR 2.7 billion
* Operative EBITDA-% of revenue 15%
* gearing level <60%.
Kemira expects its capital expenditure-to-sales ratio, excluding acquisitions to
increase in the next few years from the 2014 level of 6.3%. In addition, Kemira
expects its medium-term operative tax rate to be in the range of 22%-25%. This
rate excludes non-recurring items.
The basis for growth is the expanding market for chemicals and Kemira's
expertise that helps customers in water intensive industries to increase their
water, energy and raw material efficiency. The need to increase operational
efficiency in our customer industries creates opportunities for Kemira to
develop new products and services for both current and new customers. Research
and Development is a critical enabler of organic growth for Kemira, providing
differentiation capabilities in its relevant markets. Kemira will invest in
innovation, technical expertise, and competencies in its selected focus areas.
Outlook for 2015
In 2015, Kemira will focus on profitable growth both organically and
inorganically. Kemira's revenue in 2015 is expected to increase compared to
2014 and operative EBITDA in 2015 to remain approximately at the same level or
to increase compared to 2014. The outlook excludes the impact of AkzoNobel paper
chemical business (acquisition expected to close in the second quarter of
2015). At closing, AkzoNobel paper chemical business is expected to add revenue
of more than EUR 200 million on an annualized basis.
Helsinki, April 24, 2015
Kemira Oyj
Board of Directors
FINANCIAL CALENDAR 2015 AND 2016
Interim Report January-June 2015 July 22, 2015
Interim Report January-September 2015 October 23, 2015
Financial Statements Bulletin 2015 February 11, 2016
Interim Report January-March 2016 April 26, 2016
Interim Report January-June 2016 July 21, 2016
Interim Report January-September 2016 October 25, 2016
Kemira Capital Markets Day will be held in Espoo R&D Center, Finland on
September 17, 2015.
Press and analyst conference and conference call
Kemira will arrange a press conference for analysts and the media starting at
2.30 pm (12.30 pm UK time) at Kemira House, Porkkalankatu 3, Helsinki. In the
conference, Kemira's President and CEO Jari Rosendal and CFO Petri Castrén will
present the results. The press conference will be held in English and will be
webcasted at www.kemira.com/investors. The presentation material will be
available around 2.00 pm and the webcast after the event at the above mentioned
company web site.
Conference call in connection to the press and analyst conference
You can also listen to the conference live over the phone and attend the Q&A
session via a conference call. In order to participate in the call, please dial
ten minutes before the conference begins:
FI: +358 9 817 10495
SE: +46 8 566 42702
UK: +44 20 31940552
US: +1 855 7161597
No PIN code requested.
For more information, please contact
Kemira Oyj
Tero Huovinen, VP, Investor Relations
+358 10 862 1980
Kemira is a global chemicals company serving customers in water-intensive
industries. We provide expertise, application know-how and chemicals that
improve our customers' water, energy and raw material efficiency. Our focus is
on pulp & paper, oil & gas, mining and water treatment. In 2014, Kemira had
annual revenue of EUR 2.1 billion and around 4,250 employees. Kemira shares are
listed on the NASDAQ OMX Helsinki Ltd.
www.kemira.com
Link to the release:
http://hugin.info/3008/R/1914000/684136.pdf
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Source: Kemira Oyj via GlobeNewswire
[HUG#1914000]
Unternehmensinformation / Kurzprofil:
Datum: 24.04.2015 - 12:31 Uhr
Sprache: Deutsch
News-ID 388381
Anzahl Zeichen: 12628
contact information:
Town:
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Kategorie:
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