14 November 2012 11:26 [Source: ICIS news]
LONDON (ICIS)--H&R AG reported a modest rise in net income for the third quarter of 2012 compared with the same period last year, but posted a sharp year-on-year fall in net income during the first nine months as a result of increased raw materials costs, the Germany-based company said on Wednesday.
A producer of specialties, waxes, plasticisers and white oils, H&R generated €6.6m ($8.6m) in net income for the third quarter compared with €6.2m in the same period of 2011, but reported a 69% decline in net income for the first nine months to €10.7m, compared with €35.0m over the same period last year.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) for the third quarter were €20.3m, up from €17.1m in the same period in 2011.
The company attributed the fall in net income to raw materials costs growing faster than product prices, leading to a 37% drop in EBITDA over the nine-month period to €46.3m, despite a 4.3% increase in revenues year on year for the period to €946m.
The company affirmed its full-year 2012 earnings forecast of €1.1bn-1.3bn, but warned that EBITDA was likely to be “considerably” lower than in 2011.
“The prospects for the world economy have continued to deteriorate since the summer. If the debt crisis in Europe and the budgetary wrangling in the US cannot be resolved, the International Monetary Fund (IMF) thinks the global economy may even stumble into a deep recession,” the company said in an earnings statement.
EBITDA for the company’s domestic chemicals and pharmaceuticals division – by far its largest business division - fell year on year to €34.5m from €58.0m in the first nine months of the 2011, while EBITDA for its international chemicals and pharmaceuticals operations over the period increased to €14.1m from €13.9m for the first nine months of the previous year.
EBITDA for H&R's plastics division fell to €800,000 in the nine months to 30 September, from €1.8m in the same period of 2011, the company said.
($1 = €0.79)
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