Aug 03, 2012. /Lesprom Network/. Sonae Industria reports unaudited consolidated first half results for 2012 (1H 2012). Compared to 1H 2011, consolidated turnover for 1H 2012 marginally increased to Euro 712 million despite a reduction of approximately 3% in volumes sold. Price adjustments compensated the variable cost increases which resulted in a slightly increase of the recurrent EBITDA margin reaching 7.8% of turnover, as the company said in the press release received by Lesprom Network.
Consolidated turnover in 2Q 2012 totalled Euro 350 million, representing a 3% decrease compared to 1Q12. The Recurrent EBITDA margin dropped 2.1pp to 6.7% mainly due to the lower activity in Germany and France.
Total EBITDA in 1H 2012 reached Euro 52 million (which includes around Euro 3 million non recurrent costs) and was slightly above 1H 2011.
1H 2012 consolidated net losses attributable to Sonae Industria shareholders were 18 Euro million, an improvement of Euro 27 million compared with 1H 2011.
Net debt in 1H 2012 reached Euro 696 million, Euro 32 million lower than 1H 2011. Nevertheless, net interest charges for 1H 2012 are Euro 2 million above 1H 2011, due to the higher interest rate.
President of the Executive Committee of Sonae Industria Belmiro de Azevedo said: “During the last quarter macroeconomic conditions in Europe deteriorated, stopping the trend towards the profitability improvement we experienced over the last years. The Euro area faced a slowdown of activity, namely in Germany as a consequence of a weaker demand from the main furniture producers as a result of decreasing levels of export activity to neighbour countries. Additionally, the uncertainty of the financial system continues deteriorating internal consumption, affecting particularly customers from our Iberian plants. Fortunately, we have been able to compensate this lack of internal demand by exporting to more dynamic markets.
Our volumes sold in 2Q 2012 declined by 4% and consolidated turnover reached Euro 350 million, a decrease of 3%, when compared to the previous quarter. Additionally, the new supply chain management approach enabled to reduce the stocks level, however resulting in some additional production stoppages. These combined factors led to a recurrent EBITDA margin decline of 2.1pp to 6.7%.
Nevertheless, when compared to 1H 2011, despite lower volumes sold, 1H 2012 shows a positive evolution in terms of recurrent EBITDA.
Unfortunately, the situation in the UK plant, following the fire that occurred in June 2011, did not improve during 2Q. The long delays to reconstruct the plant due to the difficulties in obtaining the necessary planning approvals, coupled with the current economic climate and the downturn in the construction industry, led the plant to an unsustainable situation. Therefore, as previously announced, Sonae Industria (UK) Ltd will enter into consultations with employee and trade union representatives regarding the future of its operations in Knowsley. Nevertheless, it is our intention to continue supplying the UK market.”
Sonae Indústria is one of the largest wood based panels producers in the world. The product range includes: particleboard; MDF (Medium Density Fibreboard); hardboard; OSB (Oriented Strand Board).