Nabaltec AG / Half Year Results/Results Forecast

24.08.2010 10:00

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Nabaltec AG: Revenues up 61.3% in the first half of 2010, to EUR 53.4
million
- Record revenues in the second quarter: EUR 29.1 million
- EBIT up by EUR 5.5 million over the first half of last year, to EUR 3.5
million
- Earnings per share back into the positive
- 2010 revenue and earnings forecast raised considerably

Schwandorf, 24 August 2010 - Nabaltec AG's revenues in the second quarter
of 2010 were the highest in the company's history, as consolidated revenues
grew by 73.2%, to EUR 29.1 million. The second quarter of 2009 was near the
low point of the demand crisis, with revenues falling to EUR 16.8 million.
'With this record quarter, coming after a very strong first quarter, we
have succeeded in making up our 2009 revenue losses faster than expected
and we are now back on our long-term growth track' said Gerhard Witzany,
member of the Nabaltec AG Management Board. Revenues in the first half of
2010 came to EUR 53.4 million, up 61.3% over the first half of 2009.

In terms of earnings as well, the first half of 2010 brought a clear
improvement and a return to profitability on all levels of the income
statement. Nabaltec's earnings before interest, taxes, depreciation and
amortization (EBITDA) improved from EUR 1.1 million to EUR 7.3 million in
the first half of the year. The EBITDA margin (EBITDA as a percentage of
total performance) was 13.9%. Consolidated EBIT came to EUR 3.5 million in
the first half of 2010, for a margin (EBIT as a percentage of total
performance) of 6.7%, following a loss of EUR 2.0 million in the first half
of 2009. After a strong improvement in earnings in the first quarter,
Nabaltec's earnings grew at an ever faster pace in the second quarter.
Nabaltec's EBIT in the second quarter, EUR 2.5 million, represented the
strongest quarterly earnings in the history of the company. Nabaltec was
also able to post positive consolidated result after taxes (EUR 0.5
million) in the first half for the first time since the financial crisis
(after non-controlling interests), corresponding to earnings per share of
EUR 0.06 in the first half.

Strong growth in both divisions
Both of the company's business divisions reported growth in the first half,
with the 'Functional Fillers' business division reporting 59.5% growth over
the first half of last year and the 'Technical Ceramics' business division
reporting 65.4% growth. Revenues in the 'Functional Fillers' business
division improved from EUR 22.7 million to EUR 36.2 million, and revenue
growth in the 'Technical Ceramics' business division was faster and
stronger than even Nabaltec itself expected, as revenues grew by EUR 6.8
million to EUR 17.2 million. Accordingly, both business divisions
contributed to the company's earnings growth, in terms of both EBITDA and
operating profit (EBIT).

Nabaltec was able to generate particularly strong growth in the US and
Asian regions. Nabaltec's US subsidiary, Nashtec, increased output once
again in the first half of 2010 and is now operating at maximum capacity.
Nabaltec's US revenues in the second quarter of 2010, for example, were
almost three times as high as in the second quarter of 2009.

In the first half of 2010 sales of boehmite has given noticeably impetus to
the revenues for the first time. Boehmite is a product which Nabaltec first
introduced in 2009. This product is generating growing demand in three
target markets: catalysis (the field for which the boehmite was developed),
the electronics industry and energy storage. Nabaltec is therefore planning
to substantially expand its production capacity in this product segment.
The company's key investment project for the year 2010 is progressing as
planned: the new boehmite production plant is scheduled to go online in
October at the Schwandorf site.

Earnings forecast doubled
Due to the very positive course of business, Nabaltec has now increased its
2010 revenue and earnings forecast for the second time and indications are
good that 2010 revenues will exceed the previous record, set in 2008.
Revenues for 2010 as a whole are now expected to reach EUR 100-108 million
and operating profit (EBIT) is expected to total at least EUR 6 million.
This EBIT forecast is twice as high as the previous forecast, and Nabaltec
expects to report positive earnings in 2010 even after interest and taxes.

Market conditions are right for a sustained positive business trend in all
of Nabaltec's product segments. For example, recent market studies from
Frost & Sullivan project that the halogen-free flame retardant market,
Nabaltec's highest-revenue segment, will grow at a rate of 8.1% a year
through 2014. Nabaltec plans to generate strong growth in this market by
replacing the heavy metal-based flame retardants which are still in use
with halogen-free, eco-friendly products and by taking market share away
from competitors thanks to its high-quality and innovative products. In the
market for technical ceramics and refractory products as well, the company
expects to see growth in 2010 following a period of significant
stabilization, as global steel production, the largest direct target sector
for these products, is showing clear signs of recovery.
 
About Nabaltec AG
Nabaltec AG, with registered office in Schwandorf, a chemicals business
which has received multiple awards for innovativeness, manufactures,
develops and distributes highly specialized products based on aluminum
hydroxide ('ATH') and aluminum oxide, as well as other raw materials, on an
industrial scale through its 'Functional Fillers' and 'Technical Ceramics'
divisions. The company's product range includes halogen-free flame
retardant fillers and eco-friendly additives for the plastics industry.
Flame retardant fillers are used e.g. in cables in tunnels, airports,
high-rise buildings and electronic devices, while additives replace
stabilizers containing heavy metals in PVC processing. Nabaltec also
produces base materials for use in technical ceramics, the refractory
industry and catalysis. Unlike halogenated flame retardant fillers, the
products manufactured by the company's 'Functional Fillers' division
contain no hazardous substances and do not require separate disposal.
Rather, the company's flame retardant fillers actually decrease the
development of fumes hazardous to human health and the environment in the
event of fire. Nabaltec maintains production sites in Germany and the US
and plans to continue to consolidate its market position by expanding
capacity, further optimizing processes and quality and making strategic
extensions to its product range. On the strength of its specialty products,
the company strives to attain not just the quality leadership, but also the
market leadership in each segment. 

Contact: 
Heidi Wiendl 
Nabaltec AG 
Phone: +49 9431 53-202
Fax: +49 9431 53-260 
E-mail: InvestorRelations@nabaltec.de

Frank Ostermair
Better Orange IR & HV AG
Phone: +49 89 8896906-14
Fax: +49 89 8896906-66
E-mail: frank.ostermair@better-orange.de




24.08.2010 Ad hoc announcement, Financial News and Press Release distributed by DGAP.
Media archive at www.dgap-medientreff.de and www.dgap.de

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Language:     English
Company:      Nabaltec AG
              Alustraße 50-52
              92421 Schwandorf
              Deutschland
Phone:        +49 9431 53-0
Fax:          +49 9431 53-260
E-mail:       info @nabaltec.de
Internet:     www.nabaltec.de
ISIN:         DE000A0KPPR7
WKN:          A0KPPR
Listed:       Freiverkehr in München, Berlin, Düsseldorf, Stuttgart; Entry
              Standard in Frankfurt
 
End of News                                     DGAP News-Service
 
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