Press Releases

Haniel Group records pleasing growth

08/31/2010

  • Sales up by 17 per cent 
  • Profit before taxes improves by 38 per cent
  • Holding Company diversifies financing through issue of additional bonds
  • Much more temperate stainless steel climate boosts ELG's business
  • Celesio and TAKKT also post sales increases
  • Positive impact of METRO GROUP's strict cost management and Shape 2012 efficiency and value enhancement programme
  • CWS-boco initiates repositioning project with focus on the future
  • Launch of Haniel 2020 strategy project

Duisburg, August 31, 2010. Commenting on the progress of business thus far, Haniel Chairman Prof. Jürgen Kluge says, "Although the crisis remains current, the good results of the first half-year put us in a cautiously optimistic mood for the months ahead." The benefits of the initial recovery differed in Haniel's individual divisions. ELG in particular posted appreciable growth as the stainless steel business picked up. Celesio and TAKKT also reported very good increases. The economy's revival did not have any impact, however, on CWS-boco.

Increasing sales
In the first half of 2010, sales of the Haniel Group advanced by an impressive 17 per cent year on year, from 11,698 million to 13,706 million euros. Acquisitions played a role in this growth, especially Celesio's takeover of Panpharma in the second half of 2009. Allowing for exchange rates and company acquisitions and disposals, sales rose by 8 per cent. The main driving force was the favourable pattern of business at ELG. Bolstered by the rise in the nickel price and higher output, its sales more than doubled year on year. Celesio and TAKKT also achieved organic sales growth. CWS-boco, in contrast, recorded another downturn in sales. While its washroom hygiene and mats segments remained more or less stable, sales declined sharply in the textile services unit. CWS-boco is addressing the current situation with an extensive repositioning programme entitled "Fokus Zukunft" (focus on the future).

Operating result improves substantially
The operating result climbed by 39 per cent, from 251 million to 350 million euros. This rise in earnings is chiefly attributable to the improved sales situation – especially at ELG, but optimised cost structures also exerted a favourable influence on the operating result.

The Haniel investment result arising from METRO GROUP was influenced proportionally by the year-on-year increase in its operating result. METRO GROUP developed its business steadily in the first half-year, posting higher sales and EBIT in what remains a challenging environment. The burden imposed by the METRO GROUP investment on the Haniel Group's results fell from -32 million euros in the first half of 2009 to -3 million euros in the first six months of 2010.

Lower investment volume 
Outgoings in the first half-year were largely scheduled payments for earlier acquisitions. The net volume of spending arising from business combinations and disposals therefore fell appreciably year on year. Net expenditure on property, plant and equipment, intangible assets and other non-current assets was higher than in the first six months of the previous year. Celesio in particular posted a rise – largely because of investments in the network of wholesale outlets, the refitting of pharmacies, the market entry in Sweden, and IT expenditure.

Outlook
Haniel's Managing Board takes a cautiously optimistic view of the coming months and is hoping for further confirmation that an economic recovery has begun. An occasional faltering of economic activity cannot, however, be ruled out. Haniel's divisions will continue to benefit to a differing extent from favourable signs. Given that most divisions are improving their operating earnings, the Managing Board anticipate a year-on-year rise in the profit before taxes.

Key figures for HY1 2010 at a glance:

IFRS in million euros

30.06.2009

30.06.2010

Haniel Group

 

 

Sales

11,698

13,706

Operating result

251

350

Profit/loss before taxes

113

156

Haniel cash flow

284

296

CWS-boco

 

 

Sales

369

360

Operating result

28

21

Annual average number of employees (headcount)

7,922

7,827

ELG

 

 

Sales

587

1,461

Operating result

-13

58

Annual average number of employees (headcount)

992

986

TAKKT

 

 

Sales

358

377

Operating result

30

42

Annual average number of employees (headcount)

2,086

1,949

Celesio

 

 

Sales

10,384

11,509

Operating result

235

259

Annual average number of employees (headcount)

38,257

46,978

METRO GROUP

 

 

Haniel's investment result

-32

-3