Graphit Kropfmühl AG / Final Results
18.03.2009
Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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On 4 March 2009 the Supervisory Board approved the audited annual financial
statements of Graphit Kropfmühl AG and the consolidated financial
statements. The annual financial statements for the fiscal year 2008 are
hereby confirmed.
The Graphit Kropfmühl group closed the fiscal year 2008 with clearly
increased sales and earnings. The escalating financial crisis with its
subsequent effects on the real economy, however, influenced the group's
business development in the last quarter. The growth rates that we had
achieved until 30 September could no longer be maintained due to the drop
in sales in the last two months.
With consolidated sales of EUR 90.5 million our expectations and forecasts
were fulfilled even in this difficult environment. The increase of EUR 7.4
million or 8.9 % primarily was borne by the silicon-metal segment with EUR
7.0 million. The graphite-segment contributed EUR 0.4 million.
The earnings ratios of the group increased disproportionately. Earnings
before interest, taxes, depreciation and amortisation, and restructuring
measures (adjusted EBITDA) amounted to EUR 9.7 million after EUR 7.8
million in the previous year and thus increased by 24.4 %. Earnings before
interest, taxes and restructuring measures (adjusted EBIT) increased by
40.0 % to EUR 7.0 million.
Despite the excellent balance sheet profit the Board of Directors and the
Supervisory Board suggest not to distribute a dividend for fiscal year
2008. The common objective of all the shareholders must be to further
strengthen the company's equity. This especially is true in view of the
insecure business development in 2009 that is characterised by the general
economic situation.
For the group the financial ratios are as follows:
Group 2006 2007 2008 Change
Total sales euro mill. 75.3 83.1 90.5 8.9 %
Foreign-country share of in % 36.6 36.7 36.1
total sales
Gross profit 1 euro mill. 10.4 13.0 15.2 16.9 %
EBITDA 1 euro mill. 5.8 7.8 9.7 24.4 %
EBIT 1 euro mill. 2.9 5.0 7.0 40.0 %
EBT euro mill. 1.4 3.2 4.8 50.0 %
Consolidated earnings euro mill. 2.5 2 1.9 3.5 84.2 %
for the year
Cashflow from ordinary euro mill. 4.9 4.3 4.4 2.3 %
business activities
Investments euro mill. 1.8 4.3 7.1 65.1 %
Balance sheet total euro mill. 59.4 61.1 70.9 11.6 %
Stockholders equity euro mill. 19.3 21.0 23.8 13.3 %
Equity ratio in % 32.3 34.3 33.6
Net debt euro mill. 17.5 17.1 19.3 13.0 %
Employees (31December) 666 714 600 - 16.0 %
Profitability 2006 2007 2008 Change
EBITDA margin in % 7.7 9.3 10.7
EBIT margin in % 3.9 6.1 7.7
Return on sales in % 3.3 2.3 3.9
Return on equity in % 12.8 9.0 14.7
Silicon-metal segment 2006 2007 2008 Change
Sales euro mill. 48.5 54.0 61.0 13.0 %
Segment share of total in % 64.4 65.0 67.4
sales
EBITDA 1 euro mill. 3.2 4.2 7.0 66.7 %
EBIT 1 euro mill. 2.4 3.3 6.0 81.8 %
EBT euro mill. 1.6 2.6 5.3 > 100.0 %
Employees (31 December) 110 107 108 0.9 %
Graphite segment 2006 2007 2008 Change
Sales euro mill. 26.8 29.1 29.5 1.4 %
Segment share of total in % 35.6 35.0 32.6
sales
EBITDA 1 euro mill. 2.6 3.6 2.7 - 25.0 %
EBIT 1 euro mill. 0.5 1.7 1.0 - 41.2 %
EBT euro mill. - 0.2 0.6 - 0.5 o. A.
Employees (31 December) 556 607 492 - 18.9 %
Share 2006 2007 2008 Change
Earnings in euro 0.86 0.66 1.21 83.3 %
Cashflow in euro 1.69 1.49 1.52 2.0 %
Dividend in euro 0.00 0.00 0.00 3 0.0 %
1 Earnings ratios before restructuring measures, previous year's figures
adapted to uniform group accounting principles
2 Tax refund claims: euro 1.1 million in 2006
3 Proposal
Considerable improvement of the silicon-metal segment
In the year 2008 we reached total sales of EUR 61.0 million in the
silicon-metal segment, which means that this segment contributed 67.4 % to
the group sales. Due to the sales increase of EUR 7.0 million which is
disproportionally high, the share in the group sales increased by another
2.4 % .
As a result the earnings ratios of the silicon-metal segment clearly
improved last year. Earnings before interest, taxes, depreciation and
amortisation (EBITDA) increased to EUR 7.0 million, which is a growth of
EUR 2.8 million. Due to our high investment activities depreciations on
tangible assets clearly increased. After considering depreciations of EUR
1.0 million (previous year. EUR 0.8 million) the EBIT is EUR 6.0 million,
after EUR 3.3 million in the previous year. The EBIT margin increased from
6.2 % to 9.8 %.
Graphite segment
The development of the graphite segment clearly is influenced by the
decreasing dynamics of the economy in the course of the year. In the first
months of 2008 an exceptionally great demand resulted in a temporary
unavailability of various graphite grades on the market and in a drastic
price increase for such grades. Freight rates also drastically increased
and reached historically high levels. The fourth quarter of 2008, and
especially the months of November and December, however, were characterised
by a distinct drop of sales. Especially our customers from the automotive
sector noticeably changed their order patterns. As a result the graphite
segment, after a good start with sales that developed as expected, could
not reach the set sales target for the total year. The achieved total sales
of EUR 29.5 million just were not sufficient to reach the intended jump to
over EUR 30 million.
Due to the weak fourth quarter, earnings before interest, taxes,
depreciation and amortisation, and restructuring measures (adjusted EBITDA)
remained behind the previous year's figures and reached EUR 2.7 million
after EUR 3.6 million in the previous year.
Course of business 2009
The current economic crisis has a noticeable effect on both segments. At
present it is very difficult to make any statements concerning the course
of business, and any such statements are tainted with great uncertainty. In
the first half year of 2009 we expect a weak demand for our products. The
further course of business can not yet be sufficiently predicted at
present, because is essentially depends on the future course of the
financial and economic crisis, and on the implementation and effectiveness
of the resolved economic stimulus programs. In the current situation,
however, we altogether expect a rather declining business volume.
We will continue to meet this development with capacity adaptations. In the
first quarter of 2009 these measures already will lead to a further staff
reduction in the graphite segment by 80 employees in Asia. For the time
being we will furthermore limit investments to an absolutely necessary
level.
We expect that the decreasing business volume will be reflected in the
sales and earnings figures of the Graphit Kropfmühl group. In the total
year 2009 it will no longer be possible to reach the previous year's sales
and earnings figures.
The interim report describing the course of business in the 1st quarter
2009 will be published on 13 May 2009.
The Board of Directors Kropfmühl, 18 March 2009
Financial Calendar
Annual Report 2008 27 March 2009
Interim report 1st quarter 2009 13. May 2009
UBJ - Investment Conference, Hamburg 14. May 2009
Annual General Meeting, München 10 June 2009
Interim report 1st half year 2009 12. August 2009
German Equity Forum 9 - 11 November 2009
Interim report 3rd quarter 2009 11 November 2009
Forward-looking statements
This press release contains statements about future developments that are
based on currently available information and may involve risks and
uncertainties, the result of which may be that the actual results differ
from the forward-looking statements. Statements about future developments
must not be understood as guarantees. Future developments and events rather
depend on a variety of factors, they contain various risks and
imponderabilities and are based on assumptions that might turn out to be
incorrect. For example, these include unforeseeable changes of the general
political, economic, and social conditions.
Information on the company
Graphit Kropfmühl AG is a specialist for the production of silicon-metal
and a globally leading supplier of refined natural graphite, with locations
in Europe, Asia and Africa. The company that is listed in the Prime
Standard (ISIN: DE0005896005) provides its customers with silicon-metal and
graphite solutions for various versatile applications. Silicon-metal is
used in various industries such as chemical, aluminium, semiconductors and
solar cells. Graphite is used in various highly sophisticated applications
such as carbon brushes, lubricants, and in the sinter industry and is
gaining continuously increasing importance in the chemical industry, for
example in thermal insulation panels.
DGAP 18.03.2009
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Language: English
Issuer: Graphit Kropfmühl AG
Langheinrichstraße 1
94051 Hauzenberg
Deutschland
Phone: +49 (0)8586/609-197
Fax: +49 (0)8586/609-111
E-mail: ir@gk-graphite.com
Internet: www.gk-graphite.com
ISIN: DE0005896005
WKN: 589600
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Düsseldorf, Hamburg, München, Stuttgart
End of News DGAP News-Service
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DGAP-News: Graphit Kropfmühl AG: Sales increase 2008 by 8.9 % to euro 90.5 million; Consolidated earnings 2008 (EBIT) increase by 40.0 % to euro 7.0 million
| Source: EQS Group AG