Press Releases

Haniel maintains sales and improves profit before taxes in first half-year

08/31/2011

  • ELG and TAKKT benefit from very favourable economic impetus in first six months
  • Repositioning of CWS-boco yields initial rewards
  • Celesio result pegged back by impairments and government intervention
  • Sale of properties belonging to Metro’s founding shareholders boosts investment result
  • Economic activity will weaken in second half-year

Duisburg, August 31, 2011. Although the pace slowed during the second quarter, the global economy has continued to recover initially in the first half of 2011. Commenting on the pattern of business to date this year, Haniel Chairman Prof. Jürgen Kluge said, "Thanks to our diverse portfolio, we have maintained sales and increased the profit before taxes." While ELG and TAKKT benefited from very favourable impetus and posted appreciable sales gains, Celesio recorded more or less stable turnover year on year. CWS-boco already recorded a slight rise in sales again as its repositioning programme took hold. The Haniel Managing Board is, however, adopting a cautious outlook for the remaining months of the fiscal year. According to Kluge, "Indications suggest that the global economy will falter in the second half of the year."

Haniel's sales unchanged
In the first half of 2011, Haniel Group sales increased by 1 per cent year on year, from 13,706 million to 13,882 million euros. The ELG division pushed up its sales significantly, by 10 per cent, thanks to marginally higher output and, in particular, the rise in the price of nickel, which is the element that drives the price of stainless steel scrap. TAKKT also benefited from the economic recovery and increased sales substantially again. Growth was fuelled by TAKKT EUROPE in particular. Turnover at Celesio remained on a par with the previous year. CWS-boco has stabilised its business after two consecutive years of declining sales; it posted a slight rise again as the repositioning programme took hold.

Operating result hampered by valuation allowances
The operating result of the Haniel Group dropped from 350 million to 193 million euros. This downturn is largely attributable to a contraction in the result of Celesio. An unscheduled asset impairment test caused the division to recognise impairments of goodwill and other intangible assets in the amount of 116 million euros. The largest portion originated from the marketing service provider Pharmexx, which concluded fewer new contracts than anticipated. Celesio also had to contend with the burden of economies in the public healthcare sector again.

Year-on-year rise in profit before taxes
Profit before taxes rose by 13 per cent, from 170 million to 192 million euros. Besides the operating result, it includes, in particular, the income from financing activities, from the Metro investment, and from the other investments.

In view of reduced non-recurring expenses to date this year in connection with the Shape 2012 efficiency and value enhancement programme, METRO GROUP posted a year-on-year rise in its operating result.

The division's financial result was diminished by negative currency translation effects, but these were mitigated to some extent by the positive impact arising from the disposal of an investment. In addition to the METRO GROUP result attributable pro rata to Haniel, the sale of properties belonging to Metro's founding shareholders boosted Haniel's income by 133 million euros. The total contribution made by the Metro investment to Haniel's results in the first half of 2011 was 129 million euros. The amount for the corresponding period of 2010 was -3 million euros.

Outlook
Several indications suggest at present that economic vitality will weaken in the coming months. Setbacks in the USA and a worsening of the sovereign debt crisis in the eurozone have the potential to impair global economic growth as the year unfolds. Kluge remarked, "We will rise to the challenge presented by the worsening economic climate and respond appropriately."

Summary of business figures for first half of 2011:

IFRS in million eurosJune 30, 2012June 30, 2011
Haniel Group
Sales13.70613.882
Operating result350193
Profit before taxes 170*192
Haniel cash flow 310*303
CWS-boco
Sales360369
Operating result2127
Employees (average headcount)7.8277.852
ELG
Sales1.4611.609
Operating result5856
Employees (average headcount)9861.050
TAKKT
Sales377418
Operating result4259
Employees (average headcount)1.9491.984
Celesio
Sales11.50911.486
Operating result25986
Employees (average headcount)46.97846.517
Metro Investment
Haniel's investment result-3129**

* The figures for the previous year have been restated in compliance with IAS 8.26

** Including income from property disposals.