COIL : 2018 FIRST-HALF EARNINGS
02 Octobre 2018 - 05:45PM
2018 FIRST-HALF
EARNINGS
-
First quarter impacted by
destocking caused by extreme volatility of aluminium price (Q1
revenues: -27%), followed by a return to more normal demand
levels in second quarter
-
Transitional first half of the
year to further strengthen industrial capabilities
-
Earnings temporarily affected
by non-recurring costs for starting up the two new production
lines
-
Robust balance sheet with net
debt representing 45% of shareholders' equity
-
Margins expected to pick up
again over the second half of the year
Brussels, October
2, 2018 (5:45pm) - COIL, the world leader for aluminium anodising,
is releasing its earnings for the first half of 2018.
Half-year
highlights
From a commercial perspective, the
first half of 2018 was marked by unprecedented aluminium price
volatility. This had a negative impact on the short-term purchasing
strategies of industrial aluminium users and particularly metal
distributors. Reflected in a destocking trend, primarily during the
first quarter, this affected the company's sales for the first
half, which contracted 15.5% to €12.1m. Given the high level of
variable costs, this had a significant unforeseen impact on
profitability.
From an industrial perspective,
COL has supported the start-up of its sixth continuous anodising
line, in Germany, and brought into service its new automated batch
anodising line, based on the innovative Aloxide®
process, in Belgium.
A number of different technical
issues on Line 6 delayed the full transition of production from
Line 3 in Belgium to Line 6 in Germany, creating a duplication of
costs and a lack of opportunity to optimise variable costs on Line
6. Most of these issues have now been successfully resolved.
The new Aloxide® line in
Belgium has entered service successfully with excellent levels of
production quality.
These two new facilities are
contributing to a significant increase in COIL's production
capacity and consolidating the expansion of the range of products
and services it is able to offer.
Earnings
The cost structure is aligned with
expectations for future sales growth and the temporary slowdown in
business over the first half of the year and the non-recurring
costs linked to the two new production lines starting up affected
the accounts for the period.
EBITDA for the first half of 2018
came to €1.3m, compared with €3.9m for the first half of 2017. This
notably reflects the recognition of: i/ non-productive costs
to bring the two new production lines into service (€0.5m) and ii/
an increase in payroll costs (+€0.4m) linked to the recruitment of
additional staff to cover the launch of operations for Line 6 in
Germany.
Operating income represents
€(0.6)m and notably includes an increase in other expenses (+€0.8m)
due to higher environmental taxes and lower subsidies.
With financial expenses down to
€0.2m, net income is negative, coming in at €(0.8)m, versus a
€2.3m profit for the first half of 2017.
Condensed income
statement
€m |
H1 2018 |
H1 2017 |
Revenues |
12.1 |
14.4 |
EBITDA* |
1.3 |
3.9 |
% of revenues |
10.3% |
26.9% |
Operating
income |
(0.6) |
2.7 |
% of revenues |
(4.5%) |
18.6% |
Pre-tax
income |
(0.7) |
2.3 |
Net
income |
(0.8) |
2.3 |
% of revenues |
(6.5%) |
16.0% |
Financial
structure
COIL's balance sheet highlights
the company's capacity to successfully come through a major
strategic investment cycle in a positive position. Shareholders'
equity represents €28.7m, down €3.6m from December 31, 2017,
factoring in half-year earnings and the dividend (€2.8m), recorded
at June 30 and paid in September. Net financial debt at June 30,
2018 came to €13.0m, stable versus December 31, 2017, and
represents 45% of shareholders' equity.
Outlook
For the second half of the year,
based on a more normal situation for its activity and an optimised
industrial organisation, COIL expects its sales to gradually
improve and its profitability to pick up again. For the full year
in 2018, the company is targeting annual revenues of between €24m
and €26m.
At the leading-edge of aluminium
anodising, COIL has outstanding fundamentals in place to ramp up
its development in a market for which the long-term outlook is very
positive. Its prospects have been further strengthened by the
development of its new Aloxide® business and
the benefits of its investments in Line 6.
The return to a more normal market
situation, elimination of non-recurring costs and the extra
capacity and diversity of the Aloxide® line will
allow Coil to forecast significant improvements across all areas in
2019.
Next date
2018 full-year revenues will be
released on February 8, 2019 (after close of trading)
COIL is the world's largest
architectural and industrial anodiser.
Anodising is an electrochemical process - electrolysis - that
develops a natural and protective exterior layer on aluminium that
can be coloured, providing exceptional corrosion protection and/or
increased functionality for the metal.
Anodising preserves all the natural and ecological properties of
aluminium - it retains its high strength-to-weight ratio,
non-magnetic properties and exceptional corrosion resistance
without any impact on the total and repeated recyclability of the
metal.
Anodised aluminium is used across a wide range of architectural,
designer, industrial and automotive applications. |
Euronext
Growth Paris
ISIN: BE0160342011 - ALCOI
Reuters: ALCOI.PA
Bloomberg: ALCOI:FP
www.coil.be
COIL
Tim Hutton
Chief Executive Officer
tim.hutton@coil.be
Tel: +32 (0)11 88 01 88
CALYPTUS
Cyril Combe
cyril.combe@calyptus.net
Tel: +33 (0)1 53 65 68 68 |
2018 first-half earnings
This
announcement is distributed by West Corporation on behalf of West
Corporation clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: COIL via Globenewswire
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