H&R GMBH & CO. KGAA (FRA:DE000A2E) DGAP-Adhoc: H&R GmbH & Co. KGaA: Preliminary Results 2017

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DGAP-Ad-hoc: H&R GmbH & Co. KGaA / Key word(s): Final Results/Preliminary Results
H&R GmbH & Co. KGaA: Preliminary Results 2017

15-Feb-2018 / 11:55 CET/CEST
Disclosure of an inside information acc. to Article 17 MAR, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

H&R GmbH & Co. KGaA: Increase in sales revenues and good operating earnings

- Positive contributions by all segments again yield high level of operating income: EBITDA of EUR 97.9 million fully within expected range

- Net income of EUR 32.1 million

- Sales revenues exceed EUR 1.0 billion threshold

- Ability to distribute dividends restored

Salzbergen, 15 February 2018. According to preliminary figures, H&R GmbH & Co. KGaA (short form: H&R KGaA; DE000A2E4T77) achieved its third-best operating income ever (EBITDA - consolidated earnings before income taxes, other financial income and expenses and depreciation, impairments and reversals of impairments to property, plant and equipment and amortization of intangible assets) of EUR 97.9 million in financial year 2017 (2016: EUR 101.4 million). At the same time, it was fully within the expected range of EUR 96.0 million to EUR 101.0 million last stated in November 2017 and significantly exceeded the original minimum forecast of EUR 86.0 million. Because of higher depreciation and amortization, the other earnings levels were somewhat lower, but still convincing: EBIT totaled EUR 54.8 million (2016: EUR 64.2 million) while earnings before taxes (EBT) amounted to EUR 46.2 million (2016: EUR 54.2 million). Consolidated earnings attributable to shareholders totaled EUR 32.1 million (2016: EUR 38.4 million). For the first time in years, this offers the company an ability to pay dividends again. The solid earnings were generated on EUR 1,025.1 million of sales revenues, which were around 9% higher than in the previous year (2016: EUR 942.7 million) - mainly because of the price of crude oil, which on average was higher than in the previous year.

High level of earnings for the first three quarters

After the first three quarters, the high level of earnings (EBITDA for the first nine months: EUR 80.8 million) slowed down considerably in the final quarter of 2017. This was primarily attributable to the implementation of extensive planned maintenance work in the fall, which reduced availability and quantities of individual products. This effect was only partially offset by a return to full utilization of production capacities and solid demand at the end of the year. As a result, compared to the good prior-year figure (Q4 2016: EUR 21.8 million), Q4 2017 EBITDA stood at EUR 17.1 million. Due to higher depreciation and amortization in the fourth quarter, EBIT totaled EUR 0.4 million (Q4 2016: EUR 8.5 million). Earnings before taxes (EBT; Q4 2017: EUR -1.3 million; Q4 2016: EUR 6.1 million) and consolidated earnings attributable to shareholders (Q4 2017: EUR -1.8 million; Q4 2016: EUR 0.8 million) also decreased.

Compared with the prior-year period, the company's sales revenues for the quarter rose by 1.2% to EUR 240.2 million (Q4 2016: EUR 237.4 million), due to higher commodity prices.

Operating cash flow again positive in 2017

Because consolidated earnings were lower, cash flow from operations decreased from EUR 8.5 million to EUR 1.5 million in the fourth quarter of 2017. Free cash flow was negative (EUR -18.8 million), reflecting an increase in investment activities (Q4 2016: EUR -1.9 million).

By contrast, for the year as a whole, cash flow from operations remained strongly positive, although it declined from EUR 75.5 million to EUR 46.2 million. At the same time, higher cash outflows for investments lowered free cash flow from EUR 36.7 million to EUR -11.9 million.

Solid equity base

As of the end of financial year 2017, total assets (total equity and liabilities) had increased to EUR 662.6 million (31 December 2016: EUR 648.2 million). Due to the company's positive economic and financial situation, equity increased to EUR 342.7 million on the balance sheet date (31 December 2016: EUR 317.4 million). These changes were mainly attributable to the higher level of retained earnings due to the positive consolidated net income. The equity ratio was 51.7% (31 December 2016: 49.0%).

For a complete presentation of the company's business performance, including segment reporting and the separate financial statements, H&R KGaA recommends consulting the 2017 Annual Report that will be published on 21 March 2018.

Contact information:
H&R GmbH & Co. KGaA, Investor Relations/Communications, Ties Kaiser
Neuenkirchener Strasse 8, 48499 Salzbergen
Tel.: +49 40 43218-301, Fax: +49 40 43218-390

H&R GmbH & Co. KGaA:
H&R KGaA is a specialty-chemicals company listed on the Frankfurt Stock Exchange's Prime Standard segment. It develops and manufactures crude-oil-based chemical and pharmaceutical specialty products and produces high-precision plastic parts.

Forward-looking statements and forecasts:
This insider information pursuant to Article 17 of the Market Abuse Regulation [MAR] contains forward-looking statements. The statements are based on the current estimates and forecasts by the Management Team and the information available to it at this time. These forward-looking statements do not provide any warranty for the future developments and results contained therein. The future developments and results are dependent on a number of factors; they entail various risks and contingencies and are based on assumptions which could prove to be incorrect. We do not assume any responsibility for updating the forward-looking statements contained in this insider information pursuant to Article 17 of the MAR.

15-Feb-2018 CET/CEST The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
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Language: English
Company: H&R GmbH & Co. KGaA
Neuenkirchener Str. 8
48499 Salzbergen
Phone: +49 (0)40 43 218 321
Fax: +49 (0)40 43 218 390
ISIN: DE000A2E4T77
Listed: Regulated Market in Dusseldorf, Frankfurt (Prime Standard), Hamburg; Regulated Unofficial Market in Berlin, Hanover, Munich, Stuttgart, Tradegate Exchange

End of Announcement DGAP News Service

654549  15-Feb-2018 CET/CEST