Heraeus Concludes Financial Year 2012 With Satisfactory Results
HANAU, Germany, May 7, 2013 /PRNewswire/ --
The Hanau-based precious metals and technology group Heraeus closed out financial year 2012 with satisfactory results overall. This was announced by the Heraeus Holding GmbH Board of Management at a press conference on annual results held in Frankfurt on May 7. The collapse of the photovoltaics industry around the world-which affected several Heraeus business groups-and one-off expenditures for restructuring led to a decline in sales and earnings for the entire group. All-time highs like those achieved in financial year 2011 were not reached. Heraeus had total product revenue of €4.2 billion (13 percent less than in 2011). Adjusted for precious metals price effects, the decline is equal to 5 percent. The company is holding its ground in its submarkets, some of which have been marked with ongoing high degrees of uncertainty. In 2012, Heraeus earned operating results (EBIT) of €365 million, which corresponds to a decrease of 25 percent from 2011. With the lower demand for platinum, gold, and silver over the last financial year, precious metals trading revenue fell to €16 billion, despite higher prices for precious metals.
"Developments in the photovoltaics industry last year left a mark on our business. 2011 was an exceptional year, and in 2012 it was essential to hedge the results at a high level. We succeeded thanks to our broad base, which allowed us to face the global economic challenges from a position of strength," stated Dr. Frank Heinricht, Chairman of the Board of Management of Heraeus Holding GmbH, summarizing the economic development.
All business groups achieve positive operating results
The Heraeus Group's business groups experienced varied results over the course of financial year 2012. Strong demand for bonding wires as well as for sensors for steel production was a positive force. In addition, the markets for bone cements and optical fibers for the telecommunications industry remained good. Relevant markets such as photovoltaics, the semiconductor industry, and the economic development of the automotive industry led to decreased revenues in some business groups. Because of long-term changes to the basic conditions of some of the company's submarkets, Heraeus began a restructuring program in 2012. The dental products and materials and technologies business groups each introduced appropriate measures that will be continued into 2014.
Outlook: Financial risks remain, but initial signs point toward cautious optimism
There is every likelihood that the uncertain overall economic situation the Heraeus Group navigated in 2012 will continue in finaincial year 2013. The first quarter results highlight this. On the other hand, initial predictions indicate an economic recovery in submarkets and in regions where Heraeus is active. "We remain cautiously optimistic for the current financial year," according to Jan Rinnert, who is taking over for Dr. Frank Heinricht as the CEO of Heraeus Holding, effective June 1, 2013.
Heraeus continues to rely on the automotive electronics, telecommunications, medicine, steel, semiconductors, and renewable energy industries. "The company's innovative strength, once again supported by a high volume of investment, and appropriate acquisitions paired with stable liquidity create a solid foundation for profitable growth," affirmed Rinnert regarding plans for 2013.
Key financial indicators for financial year 2012
Key financial indicators in EUR million 2012 2011 Change in % Product revenue 4,228 4,840 -13 Precious metals trading revenue 15,989 21,343 -25 Earnings before interest and taxes (EBIT) 365 489 -25 Net income 237 315 -25 Shareholders' equity 2,344 2,247 +4 Capital expenditures 126 105 +19 R&D expenditures 84 76 +11 Employees at year-end 13,615 13,323 +2
Heraeus, the precious metals and technology group headquartered in Hanau, Germany, is a global, private company with over 160 years of tradition. Our fields of competence include precious metals; materials and technologies; sensors; biomaterials and medical products; dental products; quartz glass; and specialty light sources. With product revenues of €4.2 billion and precious metal trading revenues of €16 billion, as well as more than 13,600 employees in more than 120 subsidiaries worldwide, Heraeus holds a leading position in its global markets.
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Head of Corporate Communications
Heraeus Holding GmbH
SOURCE Heraeus Holding GmbH