DGAP-News: Nabaltec AG: Further stabilization in the third quarter of 2009

24.11.2009

Dissemination of a Corporate News, transmitted by DGAP - a company of EquityStory AG. The issuer / publisher is solely responsible for the content of this announcement.

- Revenues in Q3/2009 up 19.0% over previous quarter - Sharply improved gross profit margin and positive EBIT again for first time in three quarters - US subsidiary Nashtec increases revenues and reaches break-even - New 'Additives' business unit starts as planned with the commissioning of the large CAHC production facility - Outlook for total year 2009: Revenues to exceed EUR 70 million

Schwandorf, 24 November 2009 - The third quarter of 2009 proved that the Nabaltec Group's financial efficiency remains intact in a market environment that is still extremely challenging. Thanks to a 19.0% increase in revenues over the second quarter of 2009 to EUR 20.0 million and consistent cost management, Nabaltec was able to increase the gross profit margin to 49.2% and again disclose positive earnings before interest and taxes (EBIT) of EUR 0.3 million for the first time in three quarters.

In the first nine months of 2009, Nabaltec generated revenues of EUR 53.1 million, representing a 30.5% decrease from the same period in the previous year. After nine months, EBIT was EUR -1.7 million (previous year: EUR 4.8 million). The net result after minority interests amounted to EUR -4.5 million for the first nine months of the year. This figure had been EUR 1.9 million in the previous year. Cash flow from operating activities totaled EUR 1.6 million after nine months.

Revenue performance by business division and region Both the 'Functional Fillers' and 'Technical Ceramics' business divisions contributed positively to the stabilized performance in the third quarter. Due to a clearly tangible increase in demand for fine precipitated hydroxides in the third quarter 2009, the 'Functional Fillers' business division registered disproportionate growth over the first half. Decisive was also the continued improvement in the business of the U.S. subsidiary Nashtec L.P. Both demand and the corresponding revenues grew steadily there, also thanks to Nabaltec's decision to introduce a second product quality to the American market. The subsidiary Nashtec has been cash-positive for six months, achieved positive EBIT for the first time since its founding in the second quarter of 2009 and now broke the profit barrier based on the pre-tax earnings. More than 80% of the U.S. plant is now being utilized - a figure that appeared inconceivable just a few months ago given the market environment.

The revenue performance of the Group as a whole largely reflects the global market constitution. Positive exceptions were the U.S. and some Asian countries. In the U.S., Nabaltec achieved the strongest single quarter in terms of revenue since Nashtec's founding. Likewise in the Asian region, the quarter just closed was one of Nabaltec's strongest to date. Yet compared to the same period from the previous year, a 29.5% revenue decrease was registered for Europe (not including Germany) and a 41.6% decrease for Germany.

The preparations for the commissioning and production start in the fourth quarter of 2009 for the new ACTILOX(R) CAHC product line as an additive for the plastics industry are proceeding according to plans. Initial revenue effects are anticipated for 2010. The commissioning of the CAHC facility in the fourth quarter will for the most part conclude the 2009 investment program in the amount of approx. EUR 22 million.

Outlook for total year 2009 In a positive scenario, Nabaltec is anticipating a repeat of third-quarter revenues for the fourth quarter. If the current trend continues, revenues should achieve a mark of at least EUR 70 million for the total year. Prices should stabilize at the third-quarter level. One ambitious object is to confirm the previous quarter's positive EBIT in the fourth quarter. Yet the fourth-quarter EBITDA margin will certainly be above the comparable figure from the first half of 2009.

As a result of Nabaltec's operative efficiency, which was underscored not least by the satisfactory course of business in the third quarter, coupled with the return to positive EBIT, positive operative cash flow and the strict cost management, it can be expected that Nabaltec will perform better than the market and thus be able to expand its competitive position in its key product segments.

About Nabaltec AG Nabaltec AG, with registered office in Schwandorf, a chemicals business which has received multiple awards for innovativeness, manufactures, develops and distributes highly specialized products based on aluminum hydroxide ('ATH') and aluminum oxide, as well as other raw materials, on an industrial scale through its 'Functional Fillers' and 'Technical Ceramics' divisions. The company's product range includes flame-retardant fillers for the plastics industry, used e.g. in cables in tunnels, airports, high-rise buildings and electronic devices, as well as base materials for use in technical ceramics, the refractory industry and catalysis. Unlike halogenated flame-retardant fillers, the products manufactured by the company's 'Functional Fillers' division contain no hazardous substances and do not require separate disposal. Rather, the company's flame-retardant fillers actually decrease the development of fumes hazardous to human health and the environment in the event of fire. Nabaltec maintains production sites in Germany and the US and plans to continue to consolidate its market position by expanding capacity, further optimizing processes and quality and making strategic extensions to its product range. On the strength of its specialty products, the company strives to attain not just the quality leadership, but also the market leadership in each segment.

Contact: Heidi Wiendl Nabaltec AG Phone: +49 9431 53-202 Fax: +49 9431 53-260 E-mail: InvestorRelations@nabaltec.de Frank Ostermair Better Orange IR & HV AG Phone: +49 89 8896906-14 Fax: +49 89 8896906-66 E-mail: frank.ostermair@better-orange.de

24.11.2009 Financial News distributed by DGAP. Medienarchiv at www.dgap-medientreff.de and www.dgap.de

Language: English
Company: Nabaltec AG
Alustraße 50-52
92421 Schwandorf
Deutschland
Phone: +49 9431 53-0
Fax: +49 9431 53-260
E-mail: info @nabaltec.de
Internet: www.nabaltec.de
ISIN: DE000A0KPPR7
WKN: A0KPPR
Listed: Freiverkehr in Berlin, Düsseldorf, München, Stuttgart; Entry
Standard in Frankfurt

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