Kemira Oyj's Interim Report January-March 2012: Stable revenue and sales margin offset by higher fixed costs
Kemira Oyj
Stock exchange release
April 24, 2012 at 8.30 am (CET+1)
* Revenue remained stable at EUR 552.9 million (556.8).
* Operative EBIT decreased 15% to EUR 38.2 million (44.9) with a margin of
6.9% (8.1%) mainly due to higher fixed costs.
* Earnings per share decreased 21% to EUR 0.19 (0.24) mainly due to changes in
fair values of electricity derivatives.
* Kemira outlook for 2012 is revised from the 2011 year-end report. Kemira
expects revenue and operative EBIT in 2012 to be approximately at the same
level than in 2011.
Kemira's President and CEO Wolfgang Büchele:
"Kemira's revenue and operative EBIT improved at the beginning of the year
compared to the challenging fourth quarter of 2011. Compared to the first
quarter of 2011, Kemira was able to compensate the lower sales volumes and
higher raw material prices with the sales price increases. However, our fixed
costs increased in all segments and resulted in a decrease in the operative
EBIT.
Kemira will continue to focus on the water and more specifically on the water
quality and quantity management. This is a unique aspect in the chemical
industry. Now we are focusing on the following priorities:
First of all, we have to get into an accelerated mode in order to reach our EBIT
financial target of 10% by improving our internal efficiency. This will be
achieved by reducing the complexity of our business while growing profitably at
the same time.
Secondly, as the fastest growth of water related business will be in Asia and
South America, we have to substantially strengthen our position there.
Lastly, we need to sharpen our strategy and to make it more tangible for
everyone.
I assumed the position of CEO on April 1, 2012 but already prior to that I have
spent time meeting Kemira employees. What impressed me most was the energy and
enthusiasm of our people. As one Kemira, we will together leverage our market
potential and create value for the company and its stakeholders.
In the near term, uncertainty in Europe and a slowdown in global economic growth
may affect the demand for our products. Kemira expects revenue and operative
EBIT in 2012 to be approximately at the same level than in 2011. This guidance
assumes that no major macroeconomic disruption and/or further substantial
increase in oil price would occur."
Key figures and ratios
Jan-Mar 2012 Jan-Mar 2011 Jan-Dec
EUR million 2011
------------------------------------------------------------------------
Revenue 552.9 556.8 2,207.2
EBITDA 61.8 68.4 259.6
EBITDA, % 11.2 12.3 11.8
------------------------------------------------------------------------
Operative EBIT 38.2 44.9 157.3
EBIT 36.1 44.9 158.3
------------------------------------------------------------------------
Operative EBIT, % 6.9 8.1 7.1
EBIT, % 6.5 8.1 7.2
------------------------------------------------------------------------
Share of profit or loss of associates 10.8 7.5 31.0
------------------------------------------------------------------------
Financial income and expenses -10.3 -3.8 -20.9
------------------------------------------------------------------------
Profit before tax 36.6 48.6 168.4
------------------------------------------------------------------------
Net profit 29.9 37.9 140.3
------------------------------------------------------------------------
EPS, EUR 0.19 0.24 0.89
------------------------------------------------------------------------
Capital employed* 1,717.0 1,677.2 1,705.0
ROCE, %* 10.7 10.6 11.1
------------------------------------------------------------------------
Cash flow after investing activities -8.1 20.7 115.3
------------------------------------------------------------------------
Capital expenditure 19.4 14.4 201.1
------------------------------------------------------------------------
Equity ratio, % at period-end 52 53 51
------------------------------------------------------------------------
Gearing, % at period-end 45 42 38
------------------------------------------------------------------------
Personnel at period-end 5,051 4,952 5,006
------------------------------------------------------------------------
* 12-month rolling average
Definitions of key figures are available at www.kemira.com > Investors >
Financial information. Comparative 2011 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.
Outlook (revised)
Kemira's vision is to be a leading water chemistry company. Kemira will continue
to focus on improving profitability and reinforcing positive cash flow. The
company will also continue to invest in order to secure the future growth in the
water business.
Kemira's financial targets remain as communicated in connection with the Capital
Markets Day in September 2010. The company's medium term financial targets are:
-Â Â Â Â Â Â Â Â Â revenue growth in mature markets > 3% per year, and in emerging
markets > 7% per year
-Â Â Â Â Â Â Â Â Â EBIT, % of revenue > 10%
-Â Â Â Â Â Â Â Â Â positive cash flow after investments and dividends
-Â Â Â Â Â Â Â Â Â gearing level < 60%.
The basis for growth is the expanding water chemicals markets and Kemira's
strong know-how in the water quality and quantity management. Increasing water
shortage, tightening legislation and customers' needs to increase operational
efficiency create opportunities for Kemira to develop new water applications for
both current and new customers. Investment in research and development is a
central part of Kemira's strategy. The focus of Kemira's research and
development activities is on the development and commercialization of the new
innovative technologies for Kemira's customers globally and locally.
In the near term, an uncertainty in Europe and a slowdown in global economic
growth may affect the demand for our products in the customer industries. In
2012, Kemira expects the revenue and operative EBIT to be approximately at the
same level than in 2011. This guidance assumes that no major macroeconomic
disruption and/or further substantial increase in oil price would occur.
Press and analyst conference and conference call
Kemira will arrange a press conference for analysts and the media starting at
10.30 am at Kemira House, Porkkalankatu 3, Helsinki. In the conference, Kemira's
President and CEO Wolfgang Büchele and Chief Financial Officer Jyrki Mäki-Kala
will present the results. The press conference will be held in English and will
be webcasted at www.kemira.com 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 10.30 am.
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 7162 0125, code 915674 ten minutes before the conference begins. A
recording of the conference call will be available on Kemira's website later the
same day.
For more information, please contact
Tero Huovinen, Director, Investor Relations
+358 10 862 1980
Kemira is a global two billion euro water chemistry company that is focused on
serving customers in water-intensive industries. The company offers water
quality and quantity management that improves customers' energy, water, and raw
material efficiency. Kemira's vision is to be a leading water chemistry company.
www.kemira.com
www.waterfootprintkemira.com
Interim Report January-March 2012:
http://hugin.info/3008/R/1605166/508247.pdf
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Source: Kemira Oyj via Thomson Reuters ONE
[HUG#1605166]