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Thursday, 15 February 2018

RECYLEX SA: FINANCIAL INFORMATION TO DECEMBER 31, 2017

RECYLEX SA    

Published: 18:00 CET 15-02-2018 /GlobeNewswire /Source: RECYLEX SA / : RX /ISIN: FR0000120388


  • Full year 2017 strong sales growth, mainly supported by the uptrend in lead and zinc prices as well as high production levels
  • Slight sales decline in the fourth quarter of 2017 mainly due to maintenance works in the Lead and Zinc segments


Suresnes, February 15, 2018: the Recylex Group (Euronext Paris: FR0000120388 - RX) has today reported its consolidated sales figures for the full year at December 31, 2017 and for the fourth quarter of 2017.

Full year 2017 sales came to €450.3 million, up 18% compared to 2016. Sales during the fourth quarter of 2017 came to €112.7 million, a decrease of 4% on the fourth quarter of 2016.

 

Consolidated sales by segment (unaudited IFRS figures):

(€ million)

FY 2017

FY 2016

Change (%)

Lead

324.1

278.3

+16%

Zinc

98.4

73.2

+34%

Special Metals

14.2

15.0

-5%

Plastics

13.6

15.5

-12%

Total

450.3

382.0

+18%

 

 

Sebastian Rudow, Chairman and Chief Executive Officer of the Recylex Group, commented:

"The Recylex group posted a strong sales performance throughout 2017, thanks to the rise in metals prices and to solid production levels. Despite a challenging context during the first half of the year, all teams have maintained a great level of involvement and we have also been particularly committed to reinforce trust with all our business partners. Since my arrival at the end of November 2017, I have visited all plants in France and Germany and met many teams. It has once more strengthened my strong belief in the great potential of the Group and also my commitment to move it forward. To secure future performances, Recylex has to embrace the ongoing new age of industrial processes and needs to act, with motivated teams, in a responsible, open minded and creative way. The future commissioning of the new reduction furnace will be a first achievement, improving radically the European lead circular economy."


 

  1. Metal prices in euros and €/$ exchange rates in the year to December 31, 2017

 

 (€ per tonne)

FY 2017

FY 2016

Change (%)

Lead price average

2,052

1,694

+21%

Zinc price average

2,561

1,896

+35%

Source: London Metal Exchange 2018.

 

The average lead price in 2017 was 21% higher than in 2016 but recorded strong volatility between quarters: after a strong increase in the first quarter (following a strong recovery in the third and fourth quarter of 2016), lead prices decreased during the second quarter, increased slightly during the third quarter and increased more significantly during the fourth quarter.

 

The average zinc price in 2017 increased by 35% compared to 2016. Although it experienced a correction in the second quarter of 2017 reaching a record low at the end of the quarter, it remained above its 2016 level and then increased strongly during the third and fourth quarter of 2017. As a reminder, in 2016 zinc prices suffered a strong decline in the first half, but then posted a very sharp rise in the second half.

 

The average €/$ exchange rate over 2017 increased slightly (+2%), reaching 1.1295 compared to 1.1067 in 2016. It is worth noting the constant uptrend between January 1, 2017 and December 31, 2017.

 

 

  1. Breakdown of consolidated sales to December 31, 2017 relative to December 31, 2016

 

Consolidated sales for the financial year 2017 came to € 450.3 million, up 18% on their 2016 level. Restated* 2017 sales came to €476.5 million, up 19% compared with 2016.

Fourth-quarter 2017 consolidated sales totaled €112.7 million, down 4% compared to the fourth quarter of 2016. Restated* fourth-quarter 2017 sales came to €120.1 million, down 3% compared to the same period of 2016.

 

  • Lead: sales up 16%

In the financial year 2017, the Lead segment sales accounted for 72% of consolidated sales.

Full year 2017 sales came to €324.1 million, up 16% compared with 2016 thanks to the strong rise in lead prices and a very good level of production compared with 2016.

While pursuing their selective purchasing policy, the recycling plants of Recylex S.A. in France and Harz-Metall GmbH in Germany processed more than 137,100 tonnes of scrap batteries, representing a significant increase compared to 2016, as a result of an improved availability of materials for recycling.

In this context, the smelter's feeding mix evolved in favor of more secondary materials and lead production at the Weser-Metall GmbH smelter rose 5% to 122,600 tonnes in 2017, despite the impact of the scheduled major maintenance shutdown which occurred in the first half of 2017 (no shutdowns occurred in 2016).

In the fourth quarter of 2017, sales came to €81.5 million, a 8% decline on the fourth quarter of 2016. This slight contraction reflects the impact of a short maintenance shutdown at the lead smelter in Nordenham as well as the changes in the feeding mix and the commercial conditions linked to the tolling of lead concentrates.

Moreover, a scheduled maintenance shutdown of approximately four weeks is to occur at the lead smelter at the end of the first quarter of 2018, principally in order to connect the current furnace with the new reduction furnace under construction.

 

  • Zinc: sales up 35%

In the financial year 2017, the Zinc segment sales accounted for 22% of consolidated sales.

In 2017, they totaled €98.4 million, a 34% increase on 2016. Restated* 2017 sales came to €124.6 million, up 35% compared with 2016.

In spite of the scheduled maintenance shutdown at the Harz-Metall GmbH subsidiary during the first half of 2017 (no shutdowns in 2016), sales for the "electric arc furnace dust recycling" activity were higher than in 2016 mainly as a result of the strong increase in zinc prices. The Group's total Waelz oxide production (including 100% of Recytech S.A.'s output) rose 1% to 73,270 tonnes in 2017.

The scrap zinc recycling activity' 2017 sales were also higher than in 2016 mainly owing to the rise in zinc prices. Zinc oxide production at the Norzinco GmbH subsidiary in Germany remained stable at 23,875 tonnes.

In the fourth quarter of 2017, the segment's sales came to €24.0 million, a 15% increase on the fourth quarter of 2016 and restated* 2017 sales came to €31.4 million, up 16% compared with the same period of 2016, reflecting the higher zinc prices during the fourth quarter of 2017 compared to the same period of 2016 but Norzinco GmbH was however temporarily affected by a scheduled maintenance operation and a temporarily downtrend in sales volumes.

Harz-Metall GmbH's next major maintenance shutdown is scheduled during the third quarter of 2018.

 

  • Special Metals: sales down 5%

In the financial year 2017, the Special Metals segment sales accounted for 3% of consolidated sales.

PPM Pure Metals GmbH reported 2017 sales of €14.2 million, down 5% compared to 2016.

This decline was chiefly attributable to lower volumes and prices for germanium and gallium sales. However, high-purity arsenic sales recovered significantly compared with 2016 with better volumes and prices.

During the fourth quarter of 2017, the segment's sales came to €3.9 million, up 15% on their 2016 level mainly as a result of improved germanium sales.

 

  • Plastics: sales down 12%

In the financial year 2017, the Plastics segment sales accounted for 3% of consolidated sales.

2017 sales came to €13.6 million, down 12% compared with 2016. Due to persistently tough conditions, C2P in Germany recorded a strong contraction in sales volumes and C2P France sales resisted better thanks to its strategy focused on upgraded products. In 2017, the Group's recycled polypropylene production came to 13,260 tonnes, a 10% decrease compared to 2016.

For the same reasons, the segment's sales during the fourth quarter of 2017 came to €3.4 million, down 15% on their level in the fourth quarter of 2016.

 

*To assess the performance of the Zinc segment, the Group also releases restated financial data including the contribution from 50%-owned Recytech S.A. consolidated proportionately, even though this method is not permitted under IFRS. See Note 19 to the 2016 consolidated financial statements.

 


  1. Other key developments

 

Following the successive exercises by Kepler Cheuvreux within the scope of the equity line since it was put in place in December 2016 to cover Recylex S.A.'s cash requirements arising from its ongoing operations in France, a total of 1,320,000 new shares (exercise price between €3.75 and €14.10) were issued at January 31, 2018, generating a total net cash flow of €7,932,120 for Recylex S.A..

Consequently, a shareholder who held 1% of Recylex S.A.'s share capital at December 31, 2016 (on the basis of 24,110,982 shares) would have had his/her stake decrease to 0.9481%.

 

 

  1. Ongoing legal proceedings involving Recylex S.A. and Metaleurop Nord SAS

 

The February 14, 2018 update summarizing developments in proceedings concerning Recylex S.A. and Metaleurop Nord SAS is available from the Recylex Group's website (www.recylex.fr - News - Legal proceedings schedule).

 

 

  1. Financial agenda

 

  • FY 2017 annual financial results: Thursday April 12th, 2018 (after market closing)

 

 

 

*************************************

Regenerating the urban mines

With operations in France and Germany, Recylex is a European group specialized in lead, zinc and plastics recycling as well as in the production of special metals. A key player in the circular economy with long-standing expertise in urban waste recovery, the Group has more than 660 employees in Europe and generated consolidated sales of €450 million in 2017.

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 average metals prices

 

(€ per tonne)

First quarter 2017

Second quarter 2017

Third quarter 2017

Fourth quarter 2017

First quarter 2016

Second quarter 2016

Third quarter 2016

Fourth quarter 2016

Lead price

2,138

1,963

1,988

2,117

1,582

1,523

1,677

1,993

Zinc price

2,610

2,358

2,522

2,749

1,522

1,699

1,991

2,335

Source: London Metal Exchange 2018.

 

 

2.     Consolidated sales by quarter

 

(€ million)

First quarter 2017

Second quarter 2017

Third quarter 2017

Fourth quarter 2017

First quarter 2016

Second quarter 2016

Third quarter 2016

Fourth quarter 2016

Lead

86.5

64.9

91.2

81.5

68.9

50.2

70.4

88.8

Zinc

28.5

23.9

21.9

24.0

15.5

16.8

20.0

20.9

Special Metals

3.8

3.5

2.9

3.8

3.9

4.1

3.7

3.3

Plastics

3.8

3.4

3.2

3.4

4.2

4.2

3.1

4.0

Total

122.6

95.7

119.2

112.7

92.5

75.3

97.2

117.0

IFRS figures. 2017 data unaudited, 2016 data audited.

 

 

3.     Recylex S.A.'s sales

 

(€ million)

FY 2017

FY 2016

Change (%)

Lead segment

89.8

57.8

+55%

Services to Group companies

1.3

1.3

-

Total sales

91.1

59.1

+54%

IFRS figures. 2017 data unaudited, 2016 data audited.

 

 



 



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This announcement is distributed by Nasdaq Corporate Solutions (One Liberty Plaza, 165 Broadway, New York, NY 10006. Tel: +1 212 401 8700. www.nasdaqomx.com) on behalf of Nasdaq Corporate Solutions clients. Source: Recylex S.A., 6, Place de la Madeleine, Paris 75008, France
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