H&R Wasag reports record sales in Q4

ERJ staff report (RD)

Salzbergen, Germany - Low-PAH oil producer, H&R Wasag AG's sales exceeded Euro1000 million for the first time in the fourth quarter (Q4) of 2008, compensating for the company's write-down on inventories of Euro 29.6 million, and still returning an operating result of Euro 6.3 million.

The company said the 29.7 percent increase in sales to Euro 1035 million from Euro 798 million in 2007 was mainly driven by higher price levels. Earnings before tax reached Euro 47.4 million (adjusted for cartel fine) compared to Euro 59.8 million in 2007, the company reported 20 Feb.

“Adjusted for additional write-downs on inventory, operating results in Q4 came in at a record level and reflected the excellent production and sales effort of the entire organization.” Explained Gert Wendroth, H&R Wasag ceo.

The company's Chemical/Pharmaceutical Raw Materials division achieved the largest growth with sales increasing by 35.4 percent to Euro 988 million from Euro 729 million in 2007. Operating earnings fell from Euro 81.1 million in 2007 to Euro 50.1 million due to the “provision for the cartel fine amounting to Euro 22 million and write-downs on inventory,” the company said.