Nabaltec sets a new revenue record in the first half of 2016
Revenues up 8.0% over the year before, to EUR 84.0 million / EBIT of EUR 5.0 million in the second quarter, up from last quarter and the same quarter of last year
"The positive results in the first half of 2016 once again demonstrate our company's strong position," said Johannes Heckmann, Member of the Board of Nabaltec AG. "Revenues were up in both of our business divisions, and EBIT in the second quarter came to EUR 5.0 million, up from the year before and from last quarter. We were also able to post an EBIT margin of 10.1% relative to total performance over the first six months of the year."
Consolidated EBIT in the first half of 2016 amounted to EUR 8.5 million, compared to EUR 9.0 million in the same period of last year. Earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to EUR 13.8 million in the first half of 2016, down 1.4% from the same period of last year, when a figure of EUR 14.0 million was posted. This slight decrease in earnings was attributable to relatively weak earnings in the first quarter of 2016. With after-tax earnings of EUR 4.3 million, on par with the year before, earnings per share in the first quarter of 2016 came to EUR 0.53, compared to EUR 0.54 in the same period of last year.
Revenues in the business division "Functional Fillers" amounted to EUR 30.3 million in the second quarter of 2016, up 13.1% from the second quarter of 2015, when the division's revenues came to EUR 26.8 million. The stable growth in demand for functional fillers continues to be built upon the strong positive trend in the fine precipitated hydroxides product segment (eco-friendly flame retardant fillers, e.g. for the cable & wire industry). Strong drivers e.g. in the construction industry and other markets, particularly in international regions, are generating strong demand in the cable & wire industry. Revenues in the business division "Technical Ceramics" amounted to EUR 12.5 million in the second quarter, compared to EUR 12.2 million in the same period of last year. In general, the revenue growth in this business division came at the expense of profit margin to some extent, as the growth in sales of standard oxides was higher than for higher-margin specialty oxides.
Cash flow from operating activities decreased from EUR 20.7 million in the same period of last year to EUR 16.8 million in the first half of 2016. This decrease was attributable to a smaller decrease in inventories as well as to an increase in income tax payments relative to the same period of last year. Cash flow from financing activities amounted to EUR -7.1 million, compared to EUR 13.9 million in the same period of last year. Following a comprehensive restructuring of key items on the debt side in the year 2015, amortization payments were in line with estimates in the first half of 2016.
According to Gerhard Witzany, Member of the Board of Nabaltec AG, "Our market drivers are fully intact and our strategic positioning has proven to be robust, particularly in times of uncertainty as a result of the situation with regard to our subsidiary Nashtec in the US. Although Nashtec will temporarily halt production commencing from September, as announced, we are working to ensure that it will be able to resume operations in the future based on a stand-alone solution. In the meantime, our customers will be supplied by Nabaltec from Schwandorf using the recently added capacity, so that we will be able to prevent any interruptions in supply in that regard."
Nabaltec AG will continue to refrain from issuing a quantitative revenue and earnings forecast for 2016 due to the fact that Chapter 11 bankruptcy proceedings are currently pending for the key supplier in the US. At present, the company is not expecting significant revenue losses. However, the temporary production stoppage at Nashtec may give rise to factors which will weigh down earnings. The precise amount of these potential losses cannot be stated at this time.
Note: Nabaltec AG's interim report for the second quarter of 2016 will be available for download as of 30 August 2016 in the Investor Relations section of www.nabaltec.de.
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 develop 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.