Nabaltec AG: revenues up 23.1%, to EUR 100.7 million in the First Nine Months of 2011
EBT increased from EUR 2.0 million to EUR 6.2 million / outlook for the next few months affected by uncertainty
Both business divisions posted growth over the same period of last year, with revenues in the "Functional Fillers" division up 2.7% in the third quarter and revenues in the "Technical Ceramics" division up 17.3%. The growth trend in the "Technical Ceramics" division remains intact in the third quarter, while some product segments of the "Functional Fillers" division recorded a slight weakening. Over the first nine months of the year, revenues in the "Functional Fillers" division came to EUR 66.7 million, up 21.7% from the first nine months of 2010, when revenues were EUR 54.8 million. This growth, which was especially strong in the first six months of the year, was driven above all by the growth in fine precipitated hydroxides, i.e. eco-friendly flame retardant fillers, e.g. for the wire & cable industry. Revenues in the "Technical Ceramics" division continued to grow, increasing by EUR 7.0 million in the same period of last year to EUR 34.0 million in the first nine months of 2011.
Earnings before interest, taxes, depreciation and amortization (EBITDA) improved from EUR 11.0 million in the first nine months of 2010 to EUR 17.0 million in the reporting period, and Nabaltec's EBITDA margin (EBITDA as a percentage of total performance, which improved from EUR 81.9 million to EUR 103.4 million in the first nine months 2011) increased from 13.4% to 16.4%. As was the case for revenues, earnings were once again very strong in both business divisions, in terms of both EBITDA and operating result (EBIT). Consolidated EBIT in the reporting period amounted to EUR 11.0 million, up from EUR 5.2 million in the same period of last year. The EBIT margin increased significantly, from 6.3% to 10.6% (EBIT as a percentage of total performance). The disproportionately improvement in earnings is attributable above all to Nabaltec's ability to develop products with especially high added value, as the long-term product strategy of focusing on high-quality and concentration on specialty products has shown the desired effect.
The development in net financial income was mainly affected by the EUR 30.0 million corporate bond issue, which was launched in October 2010 with a coupon rate of 6.50%. Weighed down by the interest expenses in connection with this bond issue, net financial income in the first nine months of 2011 changed from EUR -3.2 million to EUR -4.9 million. At the same time, Nabaltec was able to restructure a substantial portion of its existing long-term bank debt in the third quarter of 2011. The terms represent a clear improvement over the previous loan contracts.
Earnings before taxes (EBT) improved considerably, from EUR 2.0 million to EUR 6.2 million. After taxes and non-controlling interests, consolidated earnings for the first nine months of the year were EUR 3.7 million, and earnings per share were EUR 0.46, up from EUR 0.15 in the same period of last year.
The current circumstances of the world economies, the volatile financial markets and the unresolved debt crisis have created increasing uncertainty in Nabaltec's target markets and industries. In this environment, Nabaltec expects revenues for 2011 as a whole to grow into the range of EUR 128-131 million. As a result, the earnings target for 2011 (based on EBIT) of EUR 12 million appears highly ambitious, but still achievable.
Nabaltec AG, with registered office in Schwandorf, a chemicals business which has received multiple awards for innovativeness, manufactures, develops and distributes highly specialized products based on aluminum hydroxide ("ATH") and aluminum oxide, as well as other raw materials, on an industrial scale through its "Functional Fillers" and "Technical Ceramics" divisions. The company's product range includes halogen-free flame retardant fillers and eco-friendly additives for the plastics industry. Flame retardant fillers are used e.g. in cables in tunnels, airports, high-rise buildings and electronic devices, while additives replace stabilizers containing heavy metals in PVC processing. Nabaltec also produces base materials for use in technical ceramics, the refractory industry and catalysis. Unlike halogenated flame retardant fillers, the products manufactured by the company's "Functional Fillers" division contain no hazardous substances and do not require separate disposal. Rather, the company's flame retardant fillers actually decrease the development of fumes hazardous to human health and the environment in the event of fire. Nabaltec maintains production sites in Germany and the US and plans to continue to consolidate its market position by expanding capacity, further optimizing processes and quality and making strategic extensions to its product range. On the strength of its specialty products, the company strives to attain the market leadership in each segment.