Market Overview

Tessenderlo Group announces Third Quarter 2012 results in line with expectations


Continued progress in strategy execution

  • Tessenderlo Group announced in early October that it had launched a turnaround project to reposition its Loos (France) site to focus on the production of water treatment chemicals, securing the group's leading position in this profitable growth segment
  • Also in early October, the group announced its intention to divest its pharmaceutical ingredients activities Farchemia and Calaire Chimie to ICIG, a private industrial holding company
  • Upon conclusion of the information and consultation process, the group signed an agreement to sell its continental European profiles activities, subject to merger control approval, to Open Gate, a global investment company

3Q12 operating results led by growth businesses Tessenderlo Kerley and Gelatin & Akiolis

  • Revenue rose 0.6% to 517.5 million EUR in 3Q12; 9M12 revenue of 1.6 billion EUR was up 2.4%
  • REBITDA of 36.6 million EUR in 3Q12 and 136.4 million EUR for 9M12 represented a decline of 24.0% and 16.9% respectively, versus the same period last year
  • The segments Tessenderlo Kerley and Gelatin & Akiolis, which represent 76% of group REBITDA, again had together a solid revenue and profitability performance in the third quarter
  • Recurrent profit was 3.6 million EUR for 3Q12 and 30.8 million EUR for 9M12
  • The group had a 40.2 million EUR loss in 3Q12, due to a non-recurring charge of 46.0 million EUR.  This charge is primarily made up by a loss of 35.1 million EUR on the divestment of the group's pharmaceutical ingredients activities mentioned above.  Consequently, the group made a loss of 49.4 million EUR for 9M12

Financial position in line with expectations

  • Net financial debt at end September 2012 was 265.2 million EUR, resulting in a leverage of 1.7x and gearing of 33.2%
  • Notional net debt was 350.9 million EUR; on this basis, leverage was 2.2x and gearing 39.7%

Outlook

The group's performance over the first nine months is overall in line with its expectations.

Food and agriculture markets globally are anticipated to remain positive, acknowledging the fact that weather conditions may have a short term, limited negative impact on Tessenderlo Kerley.  Given the specific environment of Inorganics, margins are expected to remain under pressure.

Demand for Gelatin and Akiolis should remain resilient in light of the end markets served.

Construction markets show signs of further deterioration, given the elevated level of macroeconomic uncertainty in Europe.

Strategy execution, in terms of divestments of non-core businesses, as well as investments including acquisitions in growth activities, will continue to be a top priority.






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(i) the releases contained herein are protected by copyright and other applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of the
information contained therein.

Source: Tessenderlo Group via Thomson Reuters ONE

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