Rise in operating earnings for Alba SE in 2015


Alba SE increased its earnings in the 2015 fiscal year despite difficult market conditions and declining revenues. Earnings before interest, taxes, depreciation and amortisation (Ebitda) grew by more than 22 per cent to €41.2m. Earnings before tax (EBT) came in at €9.9m, following a loss of €34.4m in the previous year, the group said at the presentation of its annual results at the end of April. Consolidated revenues were down by €210m to approximately €1.36bn.

Axel Schweitzer, chairman of the administrative board of Alba SE, said the increased earnings were evidence the company was on track with its restructuring: "With regard to the operating result, our plans have been confirmed", he said. While the services segment developed positively, the conditions in the steel and metal recycling business last year were "exceptionally difficult". Therefore the group had to continue its course of restructuring and implement all of the measures planned and already initiated, he added. Furthermore, the weak situation in the steel and metals recycling business necessitated impairments of €14.1m.

Revenues in the steel and metals recycling segment declined from €1.25bn to €1.02bn last year. The segment’s Ebitda slipped slightly from €9.1m to €7.9m. By contrast, pre-tax results improved by €33.6m, but were still deeply in the red with the division posting a pre-tax loss of €21.2m.

"The reporting year in the services segment was marked by fierce competition with discounts and a sharp decline in selling terms for specific fractions", commented Mr Schweitzer. Nevertheless, the key performance indicators in this area all developed positively. Sales were higher by 5 per cent at €341m and Ebitda grew by more than one-third to €33.3m, while earnings before tax in 2015 improved by €10.7m to €31.1m.

For the current year, Alba SE anticipates a significant decline in consolidated sales. Ebitda is also expected to be lower than in 2015. By contrast, the company expects a considerable improvement in pre-tax earnings as impairments should be lower.

A detailed examination of the 2015 financial report of Alba SE as well as the group's outlook for the current year will appear on 11 May in EUWID 10/2016.

- Ad -

Article categories
- Ad -