Henkel AT finances start strong in 2013.
Earnings before interest and taxes nearly 5 percent above plan for first quarter 2013. Read more.
Earnings before interest and taxes came in at 21.4 percent for the first quarter 2013, which was 4.7 percent above the current plan and 2.6 percent above the first quarter 2012.
“Thanks to strong automotive production from our original equipment manufacturer customers, we’re seeing a very solid start to 2013,” said Raphaela Lessmann, Vice President, Financial Director, AT North America, Henkel.
Net external sales finished at 121.48 million in the first quarter 2013, 1.4 percent above first quarter 2012 results of 119.81 million.
Several steering units contributed to this solid beginning to 2013, achieving significant growth in March 2013 versus March 2012, including:
· Acoustics and structurals - 14.6 percent
· Surface treatment – 7.9 percent
· Engineering adhesives – 4.7 percent
Additional details on Henkel AT’s financial progress in 2013 can be found here.
March 2013 Net External Sales
Net External Sales in March 2013 were -3.7% unfavorable to March 2012 and -2.7% unfavorable to Plan for AT w/o ATA. Acoustics & Structural was favorable to both prior year and Plan, with Surface Treatment and Engineering Adhesives better than prior year. Sealing & Coating, Metal Packaging and AT Other/Intercompany were also favorable to Plan.
NES in TUSD / March 2013PY (Comp) / KP 2013 / Actual / % growth / % growth
Mar-12 / Mar-13 / Mar-13 / vs PY / vs KP
Sealing & Coating / 11,005 / 9,574 / 10,197 / -7.3% / 6.5%
Acoustics & Structural / 6,037 / 6,472 / 6,917 / 14.6% / 6.9%
Surface Treatment / 6,651 / 7,217 / 7,176 / 7.9% / -0.6%
Cleaners & Lubricants / 4,417 / 5,007 / 3,650 / -17.4% / -27.1%
Engineering Adhesives / 2,470 / 2,704 / 2,586 / 4.7% / -4.3%
Assembly Adhesives / 2,278 / 2,335 / 1,882 / -17.4% / -19.4%
Steel Coil w/o RO / 2,977 / 3,160 / 2,594 / -12.9% / -17.9%
Steel Coil w RO / 1,768 / 1,368 / 1,254 / -29.1% / -8.3%
Metal Packaging / 2,777 / 2,502 / 2,662 / -4.1% / 6.4%
AT Other/Inco / 1,599 / 1,228 / 1,511 / -5.5% / 23.2%
AT NA wo ATA / 41,978 / 41,565 / 40,429 / -3.7% / -2.7%
First Quarter 2013 Net External Sales
The first quarter 2013 Net External Sales results were 1.4% favorable compared to prior year and slightly above KP. This solid start to the year provides us with a positive outlook for the next quarter and rest of year. Acoustics & Structural, Surface Treatment and AT Other/Intercompany had sales above prior year. Sealing & Coating, Acoustics & Structural, Steel Coil w RO and AT Other/Intercompany had sales which exceeded plan.
NES in TUSD / Year-To-Date March 2013PY (Comp) / KP 2013 / Actual / % growth / % growth
Mar-12 / Mar-13 / Mar-13 / vs PY / vs KP
Sealing & Coating / 32,160 / 30,030 / 32,068 / -0.3% / 6.8%
Acoustics & Structural / 16,488 / 19,566 / 20,388 / 23.6% / 4.2%
Surface Treatment / 18,945 / 19,827 / 19,815 / 4.6% / -0.1%
Cleaners & Lubricants / 12,334 / 12,349 / 11,923 / -3.3% / -3.5%
Engineering Adhesives / 7,439 / 7,887 / 7,369 / -0.9% / -6.6%
Assembly Adhesives / 6,481 / 6,400 / 5,466 / -15.7% / -14.6%
Steel Coil w/o RO / 8,878 / 9,487 / 8,587 / -3.3% / -9.5%
Steel Coil w RO / 5,273 / 4,104 / 4,184 / -20.6% / 2.0%
Metal Packaging / 7,442 / 7,235 / 7,154 / -3.9% / -1.1%
AT Other/Inco / 4,379 / 4,341 / 4,527 / 3.2% / 4.6%
AT NA wo ATA / 119,817 / 121,226 / 121,481 / 1.4% / 0.2%
Net External Sales: NES is higher than plan and prior year due to strong automotive production; however, demand from non-OEM customers slipped in March. Sales in Metal Packaging are down compared to prior year and plan due to a decline in the demand for beverage cans.
GP1: MTD GP1 was 2.0% favorable to Plan and 2.5% favorable to PY predominately due to favorable raw material costs. Also, plant cost was lower than 2012 avg. due to cost savings projects and tight spending policy implemented at plants.
EBITR%: For March 2013 EBITR was 22.0%, 4.4 percentage points above KP and 2.9 percentage points above PY. For YTD March 2013 EBITR was 21.4%, 4.7 percentage points above Plan and 2.6 percentage points above PY. This is a great result and start to the year.
Financial Key
Abbreviation / DefinitionKP (German – Kuzfrist Planung) / Next year budget or short term planning
EBITR / Regional Earnings Before Interest and Taxes
EBITR % of NES (aka ROS % of NES) / Return on Sales (as % NES)
GP1 / Gross Profit
NA / North America
NES / Net External Sales
NPI / New Product Introduction
PY / Prior Year
YTD / Year to Date
ATA / Aerospace