Brenntag Sees Earnings Growth for Q1 2012

Gross profit reached €475 million ($616 million) compared with €434.4 million ($563 million), up 7.4% based on constant exchange rates (9.3% as reported).

9 May 2012 --- Chemical distributor Brenntag AG said earnings and sales were up in the first quarter, supported by organic growth as well as acquisitions made in 2011, and the company expects further earnings growth in the full year.

The company’s first-quarter sales increased 10.4% to €2.38 billion ($3 billion).

Gross profit reached €475 million ($616 million) compared with €434.4 million ($563 million), up 7.4% based on constant exchange rates (9.3% as reported).

The second key performance indicator, operating earnings before interest, taxes, depreciation and amortization, improved to €171.5 million ($221.9 million) from €158.1 million ($205 million).

Adjusted for the net effect of expenses related to efficiency measures and further non-recurring effects (about €3 million) operating EBITDA amounted to €174.5 million. First-quarter profit after tax was €79.4 million compared with €66.9 million.

Steven Holland, CEO of Brenntag AG: “We were again able to grow all our relevant earnings parameters. However, against the background of the somewhat volatile macro-economic environment and a generally weaker economic outlook we will not rest on our laurels. As part of our strategy of sustainable and efficient growth we implemented an accelerated programme of efficiency gains in Europe to progressively increase our internal efficiency, measured by the conversion ratio of operating EBITDA to gross profit whilst retaining the capacity and capability to promote our growth strategies in a more challenging business environment. With these efficiency measures implemented and considering the ongoing growth of the chemical distribution market, combined with our focus on attractive growth segments, we expect to continue growing all relevant earnings parameters excluding exchange rate effects in 2012, as well.”

In light of efficiency measures and ongoing growth of the chemical distribution market, combined with a focus on attractive growth segments, Brenntag expects to continue growing all relevant earnings parameters in 2012.

Operating gross profit should continue to increase. The rise in operating EBITDA is likely to be higher than the growth of operating gross profit thanks to efficiency improvements.