Nov. 10, 2010 - Graphit Kropfm hl AG is operating in a positive market environment which we used to emerge from the crisis stronger than before.
In the first nine months the consolidated turnover increased by 15.9 % to TEUR 71,709. This growth was especially carried by the graphite segment, which increased by 43.1 %.
The earnings position is influenced by increasing purchasing prices for energy and raw materials, which partly compensate positive effects that were realised due to good capacity utilisation and investments in more efficient production plants.
In the first nine months the gross profit increased by 12.1 % compared to the previous year and amounts to TEUR 7,232 or 10.1 % of turnover (2009: TEUR 6,449 or 10.4 %).
In the total year the sales volume of silicon-metal improved by 5.5 % to 21,941 t. Compared to the previous year, however, sales in the 3rd quarter decreased by 7.6 % to 7,521 t.
In the 3rd quarter of 2010 maintenance measures resulted in lower sales figures and increased expenses. Throughout the year we are furthermore burdened by a clear price increase for electrodes and by higher energy costs. These increasing costs could not be compensated by sales prices in 2010.
As a result both the gross profit and the other earnings ratios in this segment have decreased disproportionately.
Production capacity utilisation in this segment still is excellent, even after an additional micronising line has been put into operation. Margins in the graphite segment still are under pressure due to the development of purchasing prices. However, in the past we have clearly improved our cost structure, so that in combination with the clearly increased capacity utilisation we were able to clearly improve our profitability in this segment.
Previous year's figures adapted to uniform group accounting principles 3 Balance sheet values each refer to the accounting date of the reporting period (30. Sep.) Research and development With the awarding of this year's Nobel Prize in Physics to two Russian scientists for their research work concerning so-called graphenes this subject recently was brought to the focus of public attention. Not only since this time our research activities also have included this carbon modification. Research of this material generally still is in a very early phase, and in the short term no major turnover will be created here for the Graphit Kropfm hl group.
Graphite is 'critical raw material' in the EU In a list totally comprising 14 raw materials, the European Union (EU) classified graphite as a critical raw material. Due to a lack of own resources the EU to a large extent depends on imports of these products. In key sectors these products furthermore have an important position for technological advancement and economic growth, because so far there are no comparable substitute materials, and the continuing growth in threshold countries will lead to a further shortage. In this context e-mobility will play a major role in the future.
The graphite segment has own active resources. Furthermore the company has a mine at the Kropfm hl location, which currently is not run. With increasing graphite prices and a supply shortfall the Kropfm hl mine would be economically to run in the future.
In addition we are constantly analysing new deposits to reduce our dependency on external sources. Our efforts here primarily concentrate on regions outside Asia, and especially in Africa and South America there are deposits that have not been developed so far.
In a friendly market environment we expect good turnover figures for the last quarter in both segments. For the total year 2010 the consolidated turnover presumably will be more than EUR 92.0 million. Compared to the previous year the EBITDA in the group should clearly increase and amount to at least EUR 5.5 million (2009: Euro 4.2 million).
For 2011 the available indicators suggest a continuing positive development of sales and turnover in both segments. The effects of the government austerity package lead to uncertainties concerning the development of earnings especially in the silicon-metal segment. Because of the still ongoing discussion and a so far missing legal basis these cannot be exactly specified.
The market development for graphite will continue to be essentially influenced by Asia. For the graphite segment this means further chances for a successful development.
In the first nine months the consolidated turnover increased by 15.9 % to TEUR 71,709. This growth was especially carried by the graphite segment, which increased by 43.1 %.
The earnings position is influenced by increasing purchasing prices for energy and raw materials, which partly compensate positive effects that were realised due to good capacity utilisation and investments in more efficient production plants.
In the first nine months the gross profit increased by 12.1 % compared to the previous year and amounts to TEUR 7,232 or 10.1 % of turnover (2009: TEUR 6,449 or 10.4 %).
In the total year the sales volume of silicon-metal improved by 5.5 % to 21,941 t. Compared to the previous year, however, sales in the 3rd quarter decreased by 7.6 % to 7,521 t.
In the 3rd quarter of 2010 maintenance measures resulted in lower sales figures and increased expenses. Throughout the year we are furthermore burdened by a clear price increase for electrodes and by higher energy costs. These increasing costs could not be compensated by sales prices in 2010.
As a result both the gross profit and the other earnings ratios in this segment have decreased disproportionately.
Production capacity utilisation in this segment still is excellent, even after an additional micronising line has been put into operation. Margins in the graphite segment still are under pressure due to the development of purchasing prices. However, in the past we have clearly improved our cost structure, so that in combination with the clearly increased capacity utilisation we were able to clearly improve our profitability in this segment.
Previous year's figures adapted to uniform group accounting principles 3 Balance sheet values each refer to the accounting date of the reporting period (30. Sep.) Research and development With the awarding of this year's Nobel Prize in Physics to two Russian scientists for their research work concerning so-called graphenes this subject recently was brought to the focus of public attention. Not only since this time our research activities also have included this carbon modification. Research of this material generally still is in a very early phase, and in the short term no major turnover will be created here for the Graphit Kropfm hl group.
Graphite is 'critical raw material' in the EU In a list totally comprising 14 raw materials, the European Union (EU) classified graphite as a critical raw material. Due to a lack of own resources the EU to a large extent depends on imports of these products. In key sectors these products furthermore have an important position for technological advancement and economic growth, because so far there are no comparable substitute materials, and the continuing growth in threshold countries will lead to a further shortage. In this context e-mobility will play a major role in the future.
The graphite segment has own active resources. Furthermore the company has a mine at the Kropfm hl location, which currently is not run. With increasing graphite prices and a supply shortfall the Kropfm hl mine would be economically to run in the future.
In addition we are constantly analysing new deposits to reduce our dependency on external sources. Our efforts here primarily concentrate on regions outside Asia, and especially in Africa and South America there are deposits that have not been developed so far.
In a friendly market environment we expect good turnover figures for the last quarter in both segments. For the total year 2010 the consolidated turnover presumably will be more than EUR 92.0 million. Compared to the previous year the EBITDA in the group should clearly increase and amount to at least EUR 5.5 million (2009: Euro 4.2 million).
For 2011 the available indicators suggest a continuing positive development of sales and turnover in both segments. The effects of the government austerity package lead to uncertainties concerning the development of earnings especially in the silicon-metal segment. Because of the still ongoing discussion and a so far missing legal basis these cannot be exactly specified.
The market development for graphite will continue to be essentially influenced by Asia. For the graphite segment this means further chances for a successful development.
