2013-07-23 13:30:00 CEST
2013-07-23 13:30:46 CEST
REGLAMENTUOJAMA INFORMACIJA
Kemira Oyj - Half Year financial report
Kemira Oyj's Interim Report January-June 2013: Organic revenue growth and profitability improvement continues
Kemira Oyj
Stock Exchange Release
July 23, 2013 at 2.30 pm (CET+1)
This is a summary of the January - June 2013 Interim Report. The complete
January - June 2013 Interim Report with tables is attached to this release and
available at www.kemira.com/investors.
Second quarter:
* Organic revenue growth was 4%. Reported revenue increased 1% to EUR 569.3
million (562.3).
* Operative EBIT increased 11% to EUR 40.0 million (36.0) with a margin of
7.0% (6.4%).
* The reported earnings per share were reduced to EUR 0.02 (0.20), due to the
non-recurring restructuring charges.
* Kemira signed a deal to acquire 3F Chimica S.p.A, a privately owned Italian
polymer producer.
January-June:
* Organic revenue growth was 4%. Reported revenue increased 1% to EUR 1,130.2
million (1,115.2).
* Operative EBIT increased 10% to EUR 82.2 million (74.6) with a margin of
7.3% (6.7%).
* Operative earnings per share decreased to EUR 0.31 (0.41), mainly due to the
lower income from associated companies.
* Outlook for 2013 is unchanged, Kemira expects revenue in local currencies,
excluding divestments to be slightly higher than in 2012 and operative EBIT
to be significantly higher than in 2012.
Kemira's President and CEO Wolfgang Büchele:
In the second quarter of 2013 organic sales volumes growth continued, mainly
driven by the EMEA region, alongside further improved operative EBIT. In Oil &
Mining, sales volumes increased for the first time in six quarters driven by
polymer sales recovery in NAFTA. In Paper and Municipal & Industrial, the
operative EBIT improved significantly with 21% and 33% respectively. The
profitability in Oil & Mining declined, mainly due to the ongoing tough market
conditions and the raw material relief only ramping in towards the end of the
quarter.
We have booked the remaining "Fit for Growth" related restructuring charges, and
we are continuing with our stringent implementation. "Fit for Growth" savings
reached EUR 10 million in the quarter and we are targeting to reach the full
expected quarterly savings rate of EUR 15 million during the fourth quarter of
this year. We have also finalized the co-determination negotiations related to
the closure of process chemicals site in Vaasa, Finland. The establishment of
the Business Service Center in Gdansk, Poland is proceeding according to plan.
Furthermore, we are continuously looking for additional cost saving
possibilities to counterbalance the inflation.
In order to strengthen our polymer product line, in line with our sharpened
strategy, we have signed an agreement to acquire 3F Chimica. The acquisition
will provide us with additional polymer capacity and enable us to close
technological gaps in our monomer and polymer production. We also expect the
transaction to result in substantial synergies. For the non-core segment
ChemSolutions, we have initiated a process to evaluate strategic options.
We keep our guidance for 2013 unchanged.
KEY FIGURES AND RATIOS (figures for 2012 were restated on March 25, 2013)
EUR million Apr-Jun 2013 Apr-Jun 2012 Jan-Jun 2013 Jan-Jun 2012 2012
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Revenue 569.3 562.3 1,130.2 1,115.2 2,240.9
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Operative EBITDA 61.5 58.2 125.0 121.0 249.4
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Operative
EBITDA, % 10.8 10.3 11.1 10.8 11.1
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EBITDA 41.6 58.0 102.7 120.1 179.9
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EBITDA, % 7.3 10.3 9.1 10.8 8.0
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Operative EBIT 40.0 36.0 82.2 74.6 155.5
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Operative EBIT,
% 7.0 6.4 7.3 6.7 6.9
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EBIT 13.3 33.2 52.5 69.6 33.1
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EBIT, % 2.3 5.9 4.6 6.2 1.5
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Share of profit
or loss of
associates 0.1 5.8 -1.1 16.6 11.2
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Financing income
and expenses -4.2 1.4 -28.9 -8.9 -15.7
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Profit before
tax 9.2 40.4 22.5 77.3 28.6
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Net profit 3.7 31.4 6.5 61.5 22.4
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Earnings per
share, EUR 0.02 0.20 0.03 0.39 0.12
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Operative
earnings per
share, EUR 0.14 0.21 0.31 0.41 0.77
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Capital
employed* 1,505.1 1,722.4 1,505.1 1,722.4 1,673.0
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ROCE* 0.6 10.2 0.6 10.2 2.6
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Capital
expenditure 30.9 51.0 59.9 70.4 134.1
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Cash flow after
investing
activities 10.5 24.2 200.4 16.1 71.8
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Equity ratio, %
at period-end 51 51 51 51 51
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Gearing, % at
period-end 36 44 36 44 42
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Personnel at
period-end 4,664 5,181 4,664 5,181 4,857
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*12-month rolling average (ROCE, % based on the reported EBIT)
Definitions of key figures are available at www.kemira.com > Investors >
Financial information. Comparative 2012 figures are provided in parentheses for
some financial results, where appropriate. Operating profit, excluding non-
recurring items, is referred to as Operative EBIT. Operating profit is referred
to as EBIT.
KEMIRA'S FINANCIAL TARGETS, RESTRUCTURING PROGRAM "FIT FOR GROWTH" AND OUTLOOK
FOR 2013 (unchanged)
Kemira will continue to focus on improving its profitability and reinforcing the
positive cash flow. The company will also continue to invest in order to secure
the future growth in the water quality and quantity management business.
Kemira's financial targets have been revised in connection with its strategy
update on April, 23, 2013. The company's financial targets for 2016 are:
* revenue EUR 2.6 - 2.7 billion
* EBITDA-% of revenue 15%
* gearing level < 60%.
In addition, Kemira expects its medium-term operative tax rate to be in the
range of 22%-24%. Operative tax rate excludes non-recurring items and the impact
of the income from associated companies.
The basis for growth is the expanding market for the chemicals related to the
water quality and quantity management and Kemira's strong expertise in this
field. Customers' needs to increase operational efficiency create the
opportunities for Kemira to develop new products and services for both, current
and new customers. Research and Development is a critical organic growth enabler
for Kemira and it provides differentiation capabilities in the water quality and
quantity management markets. Kemira will invest in innovation, technical
expertise and competencies in the targeted focus areas.
Restructuring program "Fit for Growth"
Kemira Oyj has continued to implement its global restructuring program "Fit for
Growth", launched at the end of July, 2012, in order to improve the company's
profitability, its internal efficiency and to accelerate the growth in emerging
markets without sacrificing business opportunities in the mature markets. The
cost savings target with the program is EUR 60 million on an annualized basis.
In 2012, the cost savings impact of "Fit for Growth" was EUR 10 million.
The anticipated EUR 60 million cost saving impact of the program is expected to
be as follows: EUR 10 million in 2012, approximately EUR 50 million in 2013 and
EUR 60 million in 2014. The ultimate goal of the program is to reach at least
10% EBIT margin in 2014. Redundancies will account for 50% of the expected
savings. The remaining 50% will be achieved through the manufacturing network
consolidation as well as through the leaner operations. Based on the detailed
plan of measures, the cost savings estimates for the different segments, based
on the detailed plan of measures, are as follows: Paper EUR 22 million,
Municipal & Industrial EUR 22 million, Oil & Mining EUR 12 million and
ChemSolutions EUR 4 million.
Non-recurring charges related to the restructuring program were EUR 76 million,
EUR 46 million of which were severance payments and external services related
costs and EUR 30 million were asset write-downs. EUR 71 million of the
restructuring charges were booked in 2012 and EUR 5 million in the first half of
2013.
Outlook
In 2013, Kemira expects its revenue in local currencies and excluding
divestments to be slightly higher than in 2012 and its operative EBIT to be
significantly higher than in 2012. The guidance for 2013 is defined as follows.
Kemira guidance Definition
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Slightly higher/lower from 0% to 5% or from 0% to -5%
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Higher/lower from 5% to 15% or from -5% to -15%
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Significantly higher/lower more than 15% or less than -15%
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Press and analyst conference and conference call
Kemira will arrange a press conference for analysts and the media starting at
3.30 pm (1.30 pm UK time) at Kemira House, Porkkalankatu 3, Helsinki. In the
conference, Kemira's President and CEO Wolfgang Büchele will present the
results. The press conference will be held in English and will be webcasted at
www.kemira.com . Webcast will be available at www.kemira.com also after the
event. Presentation material will be available on Kemira's website at
www.kemira.com under Investors in English and at www.kemira.fi in Finnish at
about 3.00 pm.
Conference call in connection to the press and analyst conference
You can also listen to the conference live over the phone and attend the Q&A
session via a conference call. In order to participate in the call, please dial
+44 (0)20 71620 177 (dial-in from US: +1 334 323 6203, Finland: +358 (0)9
2313 9202), code 934877 ten minutes before the conference begins.
For more information, please contact
Kemira Oyj
Tero Huovinen, Director, Investor Relations
+358 10 862 1980
Kemira is a global chemicals company serving customers in water-intensive
industries. We provide expertise and chemicals that improve our customers'
water, energy and raw material efficiency. Our focus is on pulp & paper, oil &
gas, mining and water treatment. In 2012, Kemira had annual revenue of EUR 2.2
billion and around 4,900 employees. Kemira shares are listed on the NASDAQ OMX
Helsinki Ltd.
www.kemira.com
[HUG#1717875]
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