- EBIT of EUR 12.2 million down only slightly from year before (EUR 14.5 million) despite the extraordinary situation in the US;
- A stand-alone solution for the US subsidiary, Nashtec, to be implemented through the end of 2017;
- 2017 forecast calls for revenue and earnings growth.
Schwandorf, 21 March 2017 – In 2016, Nabaltec AG continued its successful performance from the year before, with consolidated revenues of EUR 159.2 million, up 5.2% from the year before (EUR 151.3 million). The results in each individual quarter improved upon the results from the same quarter of the year before. The company's two business divisions, "Functional Fillers" and "Technical Ceramics," both contributed to the revenue growth. Revenues in the business division "Functional Fillers" were EUR 109.1 million in 2016, up 6.6% from the year before (EUR 102.3 million). The business division "Technical Ceramics" reported EUR 50.1 million in revenues in Financial Year 2016, up 2.0% from the year before (2015: EUR 49.1 million).
According to preliminary figures, Nabaltec posted an operating profit (EBIT) of EUR 12.2 million in 2016. This was a highly satisfactory result in view of the extraordinary situation in the US, with the insolvency of Nashtec LLC's raw materials supplier and the associated production freeze, as well as the increase in contributions to retirement benefit obligations. In the year before, EBIT came to EUR 14.5 million. Earnings before interest, taxes, depreciation and amortization (EBITDA) were down slightly, falling by 7.3%, from EUR 24.7 million to EUR 22.9 million. The EBIT margin (EBIT as a percentage of total performance) was 7.7%, down from 9.5% in the year before.
The start in the year 2017 was positive. "We have made progress on our plan for a stand-alone solution for Nashtec, for which we achieved the most important milestone with the signing of agreements for the full acquisition of Nashtec LLC," said Johannes Heckmann, Nabaltec AG's CEO. "Financial Year 2017 will certainly be challenging due to our work in the US, but it will also be more predictable with the new situation." Nabaltec AG will begin retooling its production site in Corpus Christi, Texas in the near future and expects to be able to implement a stand-alone solution for Nashtec through the end of 2017. Nashtec is expected to resume deliveries to US customers at the beginning of 2018.
Due to the circumstances to Nashtec, Nabaltec AG has refrained from issuing a revenue and earnings forecast for 2016. In light of the implementation of a stand-alone solution through the end of 2017 and assuming economic and sector performance remain stable, Nabaltec expects revenue growth in the low single digits in 2017. Nabaltec expects an EBIT margin in the high single digits in 2017.