/ Key word(s): Half Year Results/Quarter Results
Nabaltec AG confirms preliminary results for the first half of 2020
The slump in revenues and earnings in the second quarter was largely due to the impact of the Covid-19 pandemic, which brought a steep drop in sales. Earnings were also weighed down by EUR 2.1 million in non-recurring effects, as reported in July 2020. These included a write-down on inventories in the US, as well as write-offs of equipment which is no longer needed following closure of the mullite production plant at the Schwandorf site in the second quarter.
"As we had expected, the Covid-19 pandemic had a noticeable impact on the entire market environment in the second quarter of 2020. Due to the resulting slump in demand, Nabaltec's revenues in the quarter were down by around one quarter from the year before," reported Johannes Heckmann, Nabaltec AG's CEO. "We were generally able to mitigate the impact on earnings by taking measures such as cutting hours, with a corresponding reduction in pay, as well as lowering spending for outside services. But quarterly results were nevertheless dragged down by the two non-recurring effects."
Revenues in the "Functional Fillers" product segment amounted to EUR 26.1 million in the second quarter of 2020, down from EUR 33.8 million in the year before. Total revenues in this segment over the first six months of 2020 came to EUR 57.8 million, down from EUR 66.3 million in the same period of last year (down 12.8%). Within this product segment, boehmite revenues in the fast-growing electric mobility market were up by around 50% in the second quarter of 2020 over the same quarter of last year. Revenues in the "Specialty Alumina" product segment came to EUR 10.3 million in the second quarter of 2020, down from EUR 15.2 million in the same quarter of last year. Total revenues over the first half of the year amounted to EUR 24.0 million, down from EUR 31.1 million in the first half of 2019.
Günther Spitzer, Nabaltec AG's CFO, confirmed: "On the whole, Nabaltec's position continues to be very robust, with solid liquidity. With an equity ratio of 43.7% right now, we have continued to roll back our debt since the end of 2019. Particularly if we set aside the two non-recurring effects, it is clear that we have been able to remain profitable in a difficult environment. Nevertheless, we remain cautious for the remainder of the year and do not expect to see any improvement yet in global markets. As things stand today, the third quarter of 2020 will once again be characterized by a highly volatile order situation."
Note: Nabaltec AG's quarterly report for the second quarter of 2020 will be available for download as of 27 August 2020 in the Investor Relations section of www.nabaltec.de/en.
27.08.2020 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
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