In $ million, unless otherwise indicated | Quarter | Var. % | |||
1Q17 (a) | 4Q16 (b) | 1Q16 (c) | a/b | a/c | |
Refractories volume ('000 tonnes) | 239.0 | 221.4 | 231.1 | 8.0% | 3.4% |
Net operating revenues | 284.2 | 248.8 | 234.0 | 14.2% | 21.5% |
Gross profit | 94.1 | 86.4 | 78.5 | 8.9% | 19.9% |
Gross margin (%) | 33.1% | 34.7% | 33.6% | -160 bp | -40 bps |
EBIT | 28.4 | 57.1 | 29.4 | -50.4% | -3.4% |
EBIT margin (%) | 10.0% | 23.0% | 12.6% | -1300 bp | -260 bps |
Adjusted EBIT¹ | 35.3 | 25.0 | 28.6 | 41.0% | 23.5% |
Adjusted EBIT margin (%) | 12.4% | 10.1% | 12.2% | 240 bp | 20 bps |
EBITDA | 40.2 | 73.8 | 39.9 | -45.5% | 0.8% |
EBITDA margin (%) | 14.2% | 29.6% | 17.1% | -1550 bp | -290 bps |
Adjusted EBITDA¹ | 46.6 | 35.6 | 39.1 | 31.0% | 19.2% |
Adjusted EBITDA margin (%) | 16.4% | 14.3% | 16.7% | 210 bp | -30 bps |
Net income | 16.0 | 93.0 | 22.7 | -82.8% | -29.7% |
Net margin (%) | 5.6% | 37.4% | 9.7% | -3180 bp | -410 bps |
0.31 | 1.78 | 0.43 | -82.5% | -28.5% |
Last Twelve Months | Var. % | |
1Q17 (d) | 1Q16 (e) | f/g |
898.9 | 931.0 | -3.4% |
1.024.7 | 965.7 | 6.1% |
349.2 | 296.3 | 17.8% |
34.1% | 30.7% | 340 bps |
132.9 | -59.4 | -323.8% |
13.0% | -6.1% | 1910 bps |
115.8 | 85.1 | 36.2% |
11.3% | 8.8% | 250 bps |
176.0 | -9.5 | -1952.8% |
17.2% | -1.0% | 1820 bps |
158.9 | 134.9 | 17.8% |
15.5% | 14.0% | 150 bps |
126.4 | -265.5 | -147.6% |
12.3% | -27.5% | 3980 bps |
2.46 | -5.07 | -148.4% |
Earnings per share (US$/share)²
¹Excluding other income and expenses
²EPS considers the weighted amount of shares in the period minus shares held in treasury
Earnings Conference Call: Wednesday, May 10th, 2017 In English, with simultaneous translation to Portuguese11:00am (Brasília time) - Phone: +55 11 2188-0155 (Brazil)*
10:00am (New York time) - Phone: +1 646 843 6054 (USA)
3:00pm (London time) - Phone: +44 203 051 6929 (Other countries)
Password: Magnesita
*In the above dial-in, the participant will be directed automatically to the original audio in English. In case you would like to listen to the audio in Portuguese (simultaneous translation), please ask the operator.
Webcast (English): http://cast.comunique-se.com.br/Magnesita/1Q17
Webcast (Portuguese): http://cast.comunique-se.com.br/Magnesita/1T17
Investor Relations Contacts Eduardo Gotilla - Global CFO Daniel Domiciano - IR Manager
Phone: +55 11 3152 3237 / 3241 / 3202
ri@magnesita.com www.magnesita.com/ir
MESSAGE FROM THE MANAGEMENT"The year began with better prospects for Magnesita. After several years dealing with declining steel production in our established markets, we finally witnessed a rebound in first quarter of 2017. South America recorded an 8.6% increase vs 1Q16, whilst North America (excl. Mexico) and Western Europe posted a 4.3% and 2.4% expansion, respectively.
Accordingly, our deliveries to the steel industry expanded by 6%, more than offsetting lower sales to industrial applications. Moreover, we continued expanding our presence in new geographies such as Mexico and MEA-CIS. Another highlight in the quarter was our DBM sales where sales volumes were near record levels for Magnesita in a single quarter.
Net revenue reached US$284 million in the quarter, a 21% growth over the 1Q16, supported by higher sales to the steel industry and higher DBM sales. Adjusted EBITDA reached US$47 million, the 2nd highest quarterly level in 4 years, with a 16.4% margin.
Working capital remained virtually stable quarter-over-quarter, at a record-low of 21.1% of sales, and well below the 27.2% from the previous year. Likewise, leverage was also flat against December, at 3.0x, but significantly below 4.1x in the 1Q16.
As we post another very positive quarter for Magnesita, we feel very confident that our strategy to expand into selected geographies, while simultaneously increasing profitability, cash flow and return over invested capital, is generating significant value to our shareholders.
We remain committed, as well, to complete, before year end, the combination with RHI, which will certainly be a transformational event for Magnesita, accelerating our growth and global presence, bringing major benefits to our clients, and opening many new opportunities to our employees."
Octavio Pereira Lopes
Chairman
Segment | Quarter | Var. % | |||
1Q17 (a) | 4Q16 (b) | 1Q16 (c) | a/b | a/c | |
Refractory Solutions | |||||
Volume ('000 tonnes) | 239.0 | 221.4 | 231.1 | 8.0% | 3.4% |
Revenues (US$ million) | 250.9 | 214.0 | 208.8 | 17.2% | 20.2% |
Industrial Minerals | |||||
Revenues (US$ million) | 16.5 | 14.9 | 10.9 | 11.1% | 51.6% |
Services | |||||
Revenues (US$ million) | 16.7 | 19.9 | 14.2 | -15.9% | 18.0% |
TOTAL | |||||
Revenues (US$ million) | 284.2 | 248.8 | 233.9 | 14.2% | 21.5% |
Last Twelve Months | Var. % | |
1Q17 (d) | 1Q16 (e) | f/g |
898.9 | 931.0 | -3.4% |
894.4 | 844.8 | 5.9% |
62.2 | 61.1 | 1.8% |
68.1 | 59.8 | 13.9% |
1,024.6 | 965.7 | 6.1% |
Refractory Solutions
Refractory Solutions | Quarter | Var. % | |||
1Q17 (a) | 4Q16 (b) | 1Q16 (c) | a/b | a/c | |
Volume ('000 tonnes) | 239.0 | 221.4 | 231.1 | 8.0% | 3.4% |
Revenues (US$ million) | 250.9 | 214.0 | 208.8 | 17.2% | 20.2% |
Refractory Solutions - Steel | Quarter | Var. % | |||
1Q17 (a) | 4Q16 (b) | 1Q16 (c) | a/b | a/c | |
Volume ('000 tonnes) | 200.4 | 178,8 | 188,2 | 12.1% | 6.5% |
Revenues (US$ million) | 204.5 | 174.1 | 169.1 | 17.5% | 20.9% |
Refractory Solutions - Industrial | Quarter | Var. % | |||
1Q17 (a) | 4Q16 (b) | 1Q16 (c) | a/b | a/c | |
Volume ('000 tonnes) | 38.6 | 42.5 | 42.9 | -9.2% | -10.0% |
Revenues (US$ million) | 46.4 | 40.0 | 39.7 | 16.2% | 16.9% |
Last Twelve Months | Var. % | |
1Q17 (d) | 1Q16 (e) | f/g |
898.9 | 931.0 | -3.4% |
894.4 | 844.8 | 5.9% |
Last Twelve Months | Var. % | |
1Q17 (d) | 1Q16 (e) | f/g |
756.5 | 800.3 | -5.5% |
743.7 | 714.6 | 4.1% |
Last Twelve Months | Var. % | |
1Q17 (d) | 1Q16 (e) | f/g |
142.4 | 130.7 | 8.9% |
150.7 | 130.1 | 15.8% |
Revenue from the refractory segment amounted to US$250.9 million in 1Q17, 20.2% above the previous year driven by higher deliveries and the currency effect on sales in Brazilian real due to the appreciation against the US Dollar. Year-over-year, volume reached 239,000 tonnes, 3.4% above the previous year, driven by the increase in steel production in Magnesita's established markets and higher sales in new geographies such as Mexico and MEA-CIS. The positive performance in the steel industry more than offset the lower deliveries to industrial applications.
Refractory sales per region in the 1Q17 shows an increase in the participation of sales in South America, vis-à-vis the 1Q16, which is almost entirely attributable to the stronger sales performance in Brazil.
Refractory sales per region (in US$)The breakdown of sales by segment remained virtually unchanged year-over-year, with steel accounting for 81% of sales and industrial applications - mostly cement, nonferrous and glass - accounting for 19% of refractory sales.
Refractories sales by segment (US$)1Q17 1Q16
18.5%
19.0%
81.5%
81.0%
Steel Industrial
Magnesita Refratários SA published this content on 05 September 2017 and is solely responsible for the information contained herein.
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