Tessenderlo's Q4 loss widens to €148.2m on environmental charge

28 February 2013 16:08  [Source: ICIS news]

LONDON (ICIS)--Tessenderlo recorded a €148.2m ($195m) 2012 fourth-quarter loss from continuing operations, compared with a loss of €8.4m in the same period a year ago, because of a big one-time charge for environmental site remediations and losses on divestments, the Belgium-based chemicals firm said on Thursday.

However, Tessenderlo’s recurring earnings before interest, tax, depreciation and amortisation (REBITDA) for the three months ended 31 December were up by 10.3% year on year to €24.7m as revenues rose by 5.4% to €503.9m.

Tessenderlo said that bottom-line results included a €154.6m charge to account for environmental provisions and losses on disposals – including planned sales of the company’s compound business and its organic chlorine derivatives activities.

The environmental provisions, to be spent over 40 years, are for historical soil and ground contamination of Belgian sites in Ham, Tessenderlo and Vilvoorde, as well as and Loos in France.

As for its 2013 outlook, Tessenderlo said that market conditions would be broadly unchanged from 2012.

Food and agriculture markets are expected to be strong in the US, and fertilizer volumes should be solid in 2013, it said.

Meanwhile, Tessenderlo’s markets for inorganics are likely to continue to be difficult in this year, it said.

“Construction markets in Europe will remain difficult,” it added.

“While it is too early to estimate the impact of these market conditions for the whole year, the group believes that its recurrent operating profitability in the first quarter of 2013 will be below the same period one year ago, and is unlikely to be materially higher for the full year 2013 compared to 2012,” it said.

Tessenderlo added that it does not expect to record substantial charges for environmental provisions or divestments in coming years.

($1 = €0.76)

By: Stefan Baumgarten
+1 713 525 2653

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