H&R Wasag's Q2 earnings fall 26% on high costs

14 August 2008 10:18  [Source: ICIS news]

LONDON (ICIS news)--H&R Wasag posted a 26% drop in second-quarter pre-tax earnings due to increased feedstock costs and scheduled plant turnarounds, the German chemicals company said on Thursday.

 

The company reported earnings of €12.4m ($18.5m), compared with €16.8m in the same period last year.

 

Turnover rose by 34% to €495m due to higher sales prices from passing on increased crude costs to customers, the company said.

 

The company confirmed its 2008 outlook, forecasting a year-end turnover of €1bn and pre-tax earnings in the range of €50-60m.

 

“The result of the quarter was negatively impacted by significantly increased raw material costs since the price increases could only be passed on to customers with a delay due to term contracts,” said Wasag in a statement.

 

“This effect was partially offset by the higher valuation of inventories, also resulting from the increases in raw material prices,” it added.

 

Based in Salzbergen, western Germany, the company produces pharmaceutical raw materials and plastics.

 

At 08:35 GMT the company's shares were down 0.11% to €16.73 on Germany's Xetra exchange.

 

($1 = €0.67)

 

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By: Mark Watts
+44 20 8652 3214

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