Germany's H&R first-half earnings rises 9% on higher sales

12 August 2011 19:35  [Source: ICIS news]

LONDON (ICIS)--H&R – formerly H&R WASAG – reported a 9% year-on-year increase in first-half earnings before interest, tax, depreciation and amortisation, to €56m ($80m), as sales rose almost 11%, the Germany-based producer of specialties, waxes, plasticisers and white oils said on Friday.

H&R's sales for the six months ended 30 June were €595.3m, up from €537.9m in the same period a year ago.

H&R credited a strong performance in the first three months to 31 March for the improvement.

Beginning in April, however, H&R’s results suffered as crude oil prices soared, it said.

In addition, scheduled maintenance work at H&R’s main production site in Hamburg reduced sales volumes.

For the full year ending 31 December, H&R expects EBITDA of €90m-100m, CEO Gert Wendroth said.

However, Wendroth warned that the turmoil in financial markets and the potential impact on the real economy, as well as uncertainty over crude oil prices, make it difficult to predict business developments over the next few months.

H&R also said it expects to start up a mechanically completed propane de-asphalting plant at Hamburg in September, following extensive testing.

The unit will convert residue from H&R’s Hamburg refinery into higher-value oil-based specialty products.

Effective on 1 August, H&R changed its name to H&R AG, from H&R WASAG AG. The WASAG acronym referred to an explosives business the company stopped operating in 2007.

($1 = €0.70)

By: Stefan Baumgarten
+1 713 525 2653

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