Half year results 2018
Results first half 2018:
Continued good results in volatile market
conditions
Regulated information - 27 September 2018
– 18:00
Headlines
During the first semester of 2018 Campine
achieved a revenue of 113.8 Mio € (2017: 116.5 Mio €). Profit after
taxes amounted to 4.67 Mio €, (2017: 4.98 Mio €). The slight
reduction in Sales (-2.3%) and profit (‑6.2%) are solely related to
the volatile and lower lead prices in 2018.
“The metal markets have been more volatile in
2018 due to threats of trade wars” explains CEO De Vos and adds
that “Despite similar average metal prices in the first half of
2017, the LME lead price in 2018 showed a downward trend. In
combination with increased used-battery purchase prices, this has a
short term negative impact on margins.” Campine confirms that since
August battery prices are lowering and availability improves. In
combination with the new lead furnace filter and related increased
output capacity, Campine is looking forward to a positive second
semester with good filled orderbooks for all businesses.
Re-aligned Business Units
Campine has aligned its business organisation
into 2 segments in conformance with its markets served. This
orientation also fits with our internal management structure says
De Vos: “The Plastics and Antimony Business Units are serving the
same customers, often even for the same applications, so it is
logical to bring them in one Segment called Specialty
Chemicals. In May 2018 the company announced its new
business plan, in which it confirmed also to increasingly recycle
other metals besides Lead. “What started as an attempt to recover
antimony from our drosses and other industrial waste streams,
resulted in the recovery, concentration or extraction of different
other metals. The metallurgical process to do this and the
suppliers and customers involved, are more linked to our lead
recycling operations, so these businesses fit very well under the
Segment header of Metals Recycling” adds De
Vos.
Specialty Chemicals hosts all
businesses which serve end-markets with chemical products and
derivates. The manufacturing of antimony trioxide used as
flame-retardant, polymerization catalyst and pigment reagent
(formerly reported under the Antimony unit) and the production of
different types of polymer and plastic masterbatches (formerly
reported under BU Plastics) are hosted in this Segment, which now
comprises the BU Antimony and BU Plastics.
Metals Recycling hosts the businesses in which
metals are being recovered from industrial and post-consumer waste
streams. The main activity is the manufacturing of lead alloys
(formerly reported in the BU Lead). To this business is now added
the growing activity of the recycling of other metals such as
antimony and tin (formerly integrated in the BU Antimony). This
Segment now comprises the BU Lead and BU Metals Recovery.
The financial reporting is adapted according to this
modification.
Performances per Segment
Specialty Chemicals
Market and Operations
- The demand for flame retardants continues to increase. Despite
regulatory pressure, antimony trioxide remains the most widely used
and most efficient product in the fire protection of plastics.
- Sales volumes increased to 8,078 mT compared to 7,855 mT over
the same period in 2017, which is an increase of 3 %. Demand
remains strong for the rest of the year.
- The operating result improved substantially to 2.70 Mio € (from
1.20 Mio € in 2017), due to increased operational
efficiencies.
- Campine keeps expanding its range of plastic masterbatches with
the addition of a 4th mixing unit.
Outlook 2018The demand for Campine’s chemical products remains
strong. The expectation is that the Specialty Chemicals Segment
will continue to perform better than in 2017 throughout the
year.
Metals Recycling
Market and Operations
- The demand for Lead products remains high and similar to last
year. Sales volumes in the first semester were however about 1,120
mT below last year’s first semester (30,469 mT versus 31,585 mT).
This was caused by capacity limitations related to the old filter,
which was replaced during the summer shutdown. The new furnace
filter (building) was taken into operation as planned on August 1st
and gives Campine about 15% additional lead recycling
capacity.
- LME lead prices were very volatile. The average LME lead prices
of the first 6 months 2018 were comparable with those of the first
semester 2017. However there are some substantial differences: In
2017 LME lead prices started relatively low around 1,900 €/mT and
increased thereafter. In 2018 LME lead prices started relatively
high (2,100 €/mT) and dropped considerably by begin of March
towards 1,900 €/mT after president Trump’s announcement of metal
import duties. Prices remained very volatile since then, even
reaching 1,700 €/mT in September.
- The operating result reduced accordingly to 6,245 Mio € (from
8,897 Mio € in 2017).
- Our process knowledge to recycle other metals such as antimony
and tin has reached a more mature stage, allowing us to run our
equipment more efficiently.
Outlook 2018The increased capacity will be
gradually filled during Q3 and we expect a strong output during Q4
to satisfy the high market demand. Campine expects the Metals
Recycling Segment to end the year 2018 with similar or even higher
volumes than in 2017. Margins are progressively restoring as
used-battery prices are adapting to the lowered lead LME rates.
The full press release and interim financial
report can be found in annex and are available on our
website
- 180927half year results
- interim financial report
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