- Decline in consolidated sales owing mainly to the
drop in lead and zinc prices compared to the first half of
2015
Suresnes, August 4, 2016: The
Recylex Group (Euronext Paris: FR0000120388 - RX) has today
reported its interim sales for the six months to June 30, 2016.
Consolidated sales for the
six-month period to June 30, 2016 totaled €167.8 million, a
decrease of 15% on the first six months of 2015, breaking down as
follows:
Consolidated
sales by segment (unaudited IFRS figures):
(€ million) |
Six months to June 30, 2016 |
Six months to June 30, 2015 |
Change (%) |
Lead |
119.1 |
140.4 |
-15% |
Zinc |
32.3 |
36.9 |
-12% |
Special Metals |
8.0 |
11.3 |
-29% |
Plastics |
8.4 |
9.5 |
-12% |
Total |
167.8 |
198.1 |
-15% |
Yves Roche,
Chairman and Chief Executive Officer of the Recylex Group,
commented:
"The Recylex
Group's sales performance during the first half of 2016 mainly
reflects a market effect, as metals prices fell below their level
in the first half of 2015. They decreased
significantly during the second half of 2015 and they have not yet
recovered the substantial ground they lost. From an operational
standpoint, the Lead segment was also impacted by the limited
availability of materials for recycling owing to the mild winter in
Europe. The Group continued to pursue its selective purchasing
strategy to maintain cash position and margins. Despite a
challenging pricing environment, the Zinc and Plastics segments
held up well during the first half. Conversely, the Special Metals
segment's sales decreased due to global economic conditions,
especially in germanium. In addition, the Group's teams are still
actively working to satisfy, by the fourth quarter of 2016, all the
terms and conditions on the conditional loan offer made in July
2016 to the Group's German subsidiaries."
-
Trend in metals prices in the
six months to June 30, 2016 (€)
The average lead price in the
first half of 2016 was 8% lower than in the first six months of
2015. In addition, the average zinc price over the same period was
almost 16% lower than in the first half of 2015. Average prices for
the six-month period to end-June were as follows:
(€ per tonne) |
Six months to June 30, 2016 |
Six months to June 30, 2015 |
Change (%) |
Lead price |
1,552 |
1,680 |
-8% |
Zinc price |
1,611 |
1,913 |
-16% |
While lead prices remained
relatively stable between January 4 and June 30, 2016, zinc
prices moved steadily higher over the same period.
-
Breakdown of consolidated sales
to June 30, 2016 relative to June 30, 2015
Consolidated sales in the first
six months of 2016 came to €167.8 million, down 15% compared
with the same period of 2015.
During the first half of 2016,
Lead sales accounted for 71% of consolidated sales.
They totaled €119.1 million,
down 15% compared with the first half of 2015.
Despite a favorable base of
comparison given the maintenance shutdown in the first six months
of 2015, the segment was impacted by the fall in lead prices (-8%)
and by lower production volumes (-7%) given the reduced
availability of materials for recycling.
The Group made adjustments to its
input mix, making up to some extent for the shortfall of scrap
batteries for recycling (owing to the mild weather conditions over
the winter) by using lead concentrates (with a lower lead content
than the secondary materials in scrap batteries) as part of its
tolling arrangements. During the first half of 2016, production at
the Weser-Metall GmbH smelter totaled 52,011 tonnes, down 7% from
55,771 tonnes in the first half of 2015.
Zinc sales accounted for 19% of
the Group's consolidated total during the first six months of
2016.
In the first half of 2016, they
totaled €32.3 million, a decrease of 12% compared with the
same period of 2015. Restated to include the Group's share of
50%-owned Recytech SA's sales, the segment's sales came to
€39.9 million, down an identical 13% compared with the same
period of 2015.
This decline was chiefly
attributable to the strong decline in zinc prices compared with the
first half of 2015, partly offset by higher production.
Harz-Metall GmbH's electric arc
furnace dust recycling business recorded an increase in its sales,
despite the fall in zinc prices over the period, owing to a
favorable base of comparison as a result of the maintenance
shutdown in the first half of 2015. Therefore, total Waelz oxide
production in the segment, which includes the Harz-Metall GmbH
subsidiary and Recytech, rose 9% to 34,884 tonnes in the first half
of 2016 from 32,132 tonnes in the first half of 2015.
The scrap zinc recycling business
was held back by the fall in zinc prices over the period, which
weighed on selling prices. Norzinco GmbH's zinc oxide
production increased to 11,714 tonnes in the first half of 2016,
from 11,417 tonnes in the same period of 2015 (+3%).
- Special Metals: sales down
29%
Special Metals contributed 5% of
the Group's consolidated sales in the first half of 2016.
PPM Pure Metals GmbH reported
sales of €8.0 million, down 29% on the first half of 2015.
In spite of a slight increase in
high-purity arsenic sales, this strong decrease was chiefly
attributable to lower germanium sales volumes, coupled with the
ramp-up in tolling for this metal, the steep decline in indium
prices and, to a lesser extent, lower gallium sales.
Plastics sales accounted for 5% of
consolidated sales in the first six months of 2016.
They totaled €8.4 million,
down 12% compared with the first half of 2015.
During the first six months of
2016, the segment's total production of recycled polypropylene
dropped 15% to 8,058 tonnes from 9,433 tonnes in the first half of
2015.
Due to persistently tough
conditions caused by the low level of oil prices, C2P in France
recorded a modest decline in its sales volumes. Even so, its
selling prices held up well thanks to its strategy of diversifying
its business portfolio and of moving its products upscale.
Conversely, C2P in Germany posted a decline in its sales volumes
owing to the reduced appeal of recycled materials compared with
primary materials at the current level of prices.
-
Legal proceedings in progress
concerning Recylex SA and Metaleurop Nord SAS
Please refer to the document
summarizing the development of legal proceedings concerning Recylex
SA and Metaleurop Nord SAS on the Recylex Group website
(www.recylex.fr - News - Legal
proceedings schedule).
On June 28, 2016, the Conseil
d'État overturned the Douai Administrative Court's decision of
July 21, 2015, pursuant to which Metaleurop Nord's
Noyelles-Godault plant was included on the list of facilities
eligible for the early retirement allocation for asbestos workers
("ACAATA") for the period from January 1, 1962 until December 31,
1989.
The case has been sent back to the Douai administrative court, with
different judges to re-examine and rule on both the admissibility
and merits of the request to include the site on the list.
-
Financial agenda
- Annual General Meeting:
10.00am on
Thursday September 15, 2016
- Interim 2016 results:
Thursday, September 15, 2016 after the market close
*************************************
Regenerating the urban
mine
With operations in France,
Germany and Belgium, Recylex is a European group specialized in
lead and plastics recycling (mainly from automotive and industrial
batteries), zinc recycling (from electric arc furnace dust and zinc
scrap) and the production of special metals, primarily for the
electronics industry.
A key player in the circular
economy with long-standing expertise in urban waste recovery, the
Group has close to 680 employees in Europe and generated
consolidated sales of €385 million in 2015.
For more information about
Recylex Group: www.recylex.fr and on twitter: @Recylex
*************************************
Press/Investor
contact:
Gabriel ZEITLIN
+ 33 (0)1 58 47 29 89
gabriel.zeitlin@recylex.fr
Disclaimer: This press release may
contain forward-looking statements that do not constitute forecasts
regarding results or any other performance indicator, but rather
trends or targets. These statements are by their nature subject to
risks and uncertainties as described in the Company's annual report
available on its website (www.recylex.fr).
Further information about Recylex is available from its website
(www.recylex.fr)
APPENDIX
1. Quarterly
trend in metals prices
(€ per tonne) |
First quarter 2016 |
Second quarter 2016 |
First quarter 2015 |
Second quarter 2015 |
Lead price |
1,582 |
1,522 |
1,605 |
1,758 |
Zinc price |
1,522 |
1,699 |
1,848 |
1,981 |
2. Consolidated sales by quarter
(€ million) |
First quarter 2016 |
Second quarter 2016 |
First quarter 2015 |
Second quarter 2015 |
Lead |
68.9 |
50.2 |
75.9 |
64.5 |
Zinc |
15.5 |
16.8 |
19.4 |
17.5 |
Special Metals |
3.9 |
4.1 |
6.4 |
4.9 |
Plastics |
4.2 |
4.2 |
4.8 |
4.7 |
Total |
92.5 |
75.3 |
106.5 |
91.6 |
3. Recylex
SA's sales
(€ million) |
Six months to June 30, 2016 |
Six months to June 30, 2015 |
Change (%) |
Lead
segment |
27.0 |
33.4 |
-19% |
Services
to
Group companies |
0.6 |
0.8 |
-25% |
Total sales |
27.6 |
34.2 |
-19% |
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information contained therein.
Source: RECYLEX SA via Globenewswire
HUG#2033173