Nabaltec AG Builds on Last Year’s Dynamic Performance in 2017
Revenues in each quarter were up from the same quarter of the year before. Each of the two product segments, Functional Fillers and Specialty Alumina, contributed to the positive revenue trend. Revenues in the Functional Fillers product segment were EUR 112,2 million in 2017, up 2,8 % from the year before (EUR 109,1 million). The Specialty Alumina product segment generated EUR 56,4 million in revenues in financial year 2017, over proportionally up 12,6 % from the year before (2016: EUR 50,1 million).
According to preliminary data, Nabaltec AG posted EBIT of EUR 18,3 million in 2017, up from EUR 12,2 million the year before, representing a gain of 50,0 %. Earnings before interest, taxes, depreciation and amortization (EBITDA) were up 31,0 %, from EUR 22,9 million to EUR 30,0 million. The EBIT margin (EBIT as a percentage of total performance) was 10,8 %, compared to 7,7 % from the year before.
2018, which will be for Nabaltec a transitional year due to the extraordinary situation in USA, is off to a good start. Following the acquisition of all shares in Nashtec LLC in 2017, construction and technical work is progressing towards realization of the stand-alone solution. Production is expected to resume in the second quarter of 2018. Following the start-up phase in 2018, Nashtec will have a total capacity of 30 000 t/a. There are also plans to acquire two properties in USA through a US subsidiary which has yet to be formed. Under the current plan, the first stage will be to construct a production facility for refined hydroxides with a capacity of around 30 000 t/a by mid-2019.
A facility for the production of boehmite will follow in a second stage. This project will allow Nabaltec to extend its product portfolio in USA for non-halogenated flame retardant and catalysis applications. The investment volume for the first stage of the project is expected to be around USD 12 million. Nabaltec currently expects the project to have a positive impact on consolidated earnings one year after the facility in USA goes online. Assuming stable economic performance, Nabaltec expects revenue growth in the mid-single digits in 2018 and an EBIT margin in the high single digits. The start-up phase for the US subsidiary Nashtec will hold down earnings in 2018, which will be a transitional year.