Progress in strategy execution: exit from Profiles industry and intention to sell Phosphates business

·    September 2013: Tessenderlo Group sold its UK Profiles activities.  Following this transaction, the group has completed its exit from the Profiles industry.
·    November 2013: The group announces today its intention to sell its Phosphates business excluding the phosphate production in Ham.

3Q13 operating performance mainly impacted by weakness in the segment Gelatin & Akiolis;
Tessenderlo Kerley faced slowing demand

·    3Q13 revenue decreased 5.3% to 415.1 million EUR; for 9M13 revenue edged 0.3% lower to end up at 1.4 billion EUR.
·    REBITDA for 3Q13 of 25.8 million EUR was 29.5% lower, while 9M13 REBITDA of 107.5 million EUR was 19.0% down year on year.
·    Recurrent profit was -0.5 million EUR for 3Q13 and 13.4 million EUR for 9M13.
·    The group had a loss of 12.1 million EUR in 3Q13, due to non-recurring charges related to the classification of the group's phosphates business excluding the phosphate production in Ham as assets held for sale.  For the nine months of 2013, the group had a loss of 47.3 million EUR.

Net debt decreased further due to cash proceeds and improved working capital

·    Net financial debt at the end of September 2013 was 232.7 million EUR, resulting in leverage of 1.8x and gearing of 46.5%.
·    Notional net debt at the end of September 2013 was 321.1 million EUR; on this basis, leverage was 2.4x and gearing 54.5%.
·    Cash flow from divestments received in the third quarter of 2013 amounted to 56.4 million EUR.
·    All covenants continue to be fully respected.

Outlook 2013

Based on the nine months 2013 performance, Tessenderlo Group's best estimate today is that the REBITDA decrease of 2013 versus 2012 could be up to 25%. This estimate is based on the events already disclosed in the half year 2013 results release. The competitive environment for the segment Gelatin and Akiolis remains difficult. The group is currently also facing social issues following the announcement  of the restructuring plan designed to create a profitable future for the sulfates business in Ham.


To respond to the current operational and strategic challenges, management is currently developing a comprehensive cost reduction and cash preservation plan, which will include a proposal to suspend the payment of the dividend.

Tessenderlo Group is a worldwide specialty company, focused on food, agriculture, water management and on valorizing bio-residuals. The group employs about 5,200 people and is a leader in most of its markets, with a consolidated revenue of 2.1 billion EUR in 2012.  Tessenderlo Chemie NV is listed on NYSE Eurolist by Euronext Brussels and is part of Next 150 and BEL Mid indices. Financial News wires: Bloomberg: TESB BB - Reuters: TesBt.BR - Datastream: B:Tes



Media Relations                                        Investor Relations

Kathleen IWENS                                         Philip LUDWIG

( +32 (0) 478 664 555                                ( +32 2 639 16 58

 

This press release is available in Dutch, French and English on the corporate website www.tessenderlogroup.com  - under 'News & Media' 

  
Click here to read the full press release:
http://hugin.info/133974/R/1742943/586119.pdf
Persbericht:
http://hugin.info/133974/R/1742943/586120.pdf
Communiqué de presse:
http://hugin.info/133974/R/1742943/586121.pdf


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Source: Tessenderlo Group via Thomson Reuters ONE
HUG#1742943