Mytilineos - METKA first glimpse (Manos Chatzidakis) ~ Naked Monk

6/8/14

Mytilineos - METKA first glimpse (Manos Chatzidakis)

11:37 π.μ. No comments

Mytilineos	Results H1 2014			Estimates H1'14
*In thous. euro*	2013	2014	Δ	H1 14 E	Δ (Est)
Sales	730,799	656,405	-10.2%	650,000	1.0%
Q2	371,755	311,825	-16.1%	305,420	2.1%
EBITDA	93,869	120,579	28.5%	118,000	2.2%
(% *Sales*)	*12.84%*	*18.37%*	*+552 bps*	*18.15%*	*+22 bps*
Q2	44,514	53,328	19.8%	50,749	5.1%
(% Sales)	11.97%	17.10%	+513 bps	16.62%	+49 bps
Net Income	12,537	23,366	86.4%	24,000	-2.6%
*(% Sales)*	*1.72%*	*3.56%*	*+184 bps*	*3.69%*	*-13 bps*
Q2	1,909	8,156	327.2%	8,790	-7.2%
(% Sales)	0.51%	2.62%	+210 bps	2.88%	-26 bps

METKA	Results H1 2014			Estimates H1'14
*In thous. euro*	2013	2014	Δ	H1 14 E	Δ (Est)
Sales	289,930	361,867	24.8%	360,000	0.5%
Q2	155,937	172,807	10.8%	170,940	1.1%
EBITDA	45,287	57,645	27.3%	58,000	-0.6%
(% *Sales*)	*15.62%*	*15.93%*	*+31 bps*	*16.11%*	*-18 bps*
Q2	22,346	24,925	11.5%	25,280	-1.4%
(% Sales)	14.33%	14.42%	+9 bps	14.79%	-37 bps
Net Income	46,401	54,496	17.4%	49,000	11.2%
*(% Sales)*	*16.00%*	*15.06%*	*-94 bps*	*13.61%*	*+145 bps*
Q2	30,303	29,056	-4.1%	23,560	23.3%
(% Sales)	19.43%	16.81%	-262 bps	13.78%	+303 bps

The Group announced a good set of results in line with our estimates on strong METKA results and Aluminium business turn around . METKA coming stronger bottom line figure on lower tax rates and financial income. H1 Results Highlights:

Mytilineos

§ Energy Segment in Q2 is down by 71% in Sales, EBITDA -44% and -64% in Net earnings.
§ Metallurgy posted marginal positive bottom line after six consecutive negative quarters. Sales in Q2 posted a marginal decline by 3.4% while EBITDA is up by 280% (€14.9m) incorporating “Mellon” cost cutting effects.
§ On Group level EBITDA margin remained at a healthy 17.2% (FY2013 15.6%).
§ Net debt at the end of Q2 stood at 345.9 vs 437 in Q1 and 509.7 at the end of 2013

METKA

§ Syria contribution in H1 is at €148.6m, Backlog stands at €1,308m.
§ METKA’s net cash position reached €285mn (47% of Market cap)
§ Management retains positive outlook for H2 2014 seeking new EPC projects also focusing in domestic market.

Overall a very positive quarter for the Mytilineos group and METKA with major improvements in B/S liquidity and deleveraging. Conference Call is scheduled today at 17:45 GR time.