Imerys announces revenue up 9.4% for the first 9 months of 2018

2018-11-09

Nov. 09, 2018 - Revenue for the first 9 months of 2018 ended September 30, 2018 amounts to €3,464.4 million, up + 9.4% compared to the same period of 2017. This increase reflects an organic growth of + 4.5%, thanks in particular to a positive price-mix effect in all business groups, up + 3.8%. Volumes were affected in the third quarter of 2018 by an unexpected slowdown of some markets, in particular automotive and graphite in China, as well as a drop in volumes of ceramic proppants. 

Revenue for the first 9 months also includes a positive perimeter effect of + €293.0 million (+ 9.3%), of which €250.0 million from Kerneos (acquired in July 2017) in particular, as well as the impact of significantly adverse exchange rates for - €140.0 million euros (- 4.4%). 

Current operating income totaled €424.6 million in the first 9 months of 2018, up + 3.9% compared to the same period of 2017. Net income from current operations, Group share, rose + 9.1% to €266.0 million. Net income from current operations, Group share, per share is up + 8.8% to €3.36. 

CEO Conrad Keijzer commented: “Imerys achieved an improvement in results for the first nine months of 2018, thanks to a favorable price-mix in particular, while market conditions have become more challenging in the third quarter. We made the decision to withdraw from the ceramic proppants market and implement a “care and maintenance program” for our operations in Namibia. For the full year 2018, we target to increase our net income from current operations by close to +7%, assuming no further change in market conditions. We have successfully completed the divestment of our Roofing business, which has significantly strengthened our balance sheet. ” 

BUSINESS GROUPS’ ACTIVITY 

Energy Solutions & Specialties (28% of consolidated revenue as of September 30, 2018)

The Energy Solutions & Specialties business group’s revenue totaled €975.3 million in the first 9 months of 2018, down - 1.7% on a reported basis. This change takes into account a significant - €46.9 million exchange rate effect (- 4.7%) and a net perimeter effect of + €9.9 million (+ 1.0%) due to external growth operations completed in the Carbonates division (acquisition of Micronita in Brazil, in November 2017 and Vimal Microns in India, in February 2018, as well as disposal in August 2018 of an activity of lime and limestone production in Brazil, which generated €12 million of revenue in 2017) and in the Monolithic Refractories division (acquisition of Set Linings end of March 2017). 

Filtration & Performance Additives (28% of consolidated revenue as of September 30, 2018)

The Filtration & Performance Additives business group’s revenue totaled €981.7 million in the first 9 months of 2018, a + 5.4% year-on-year increase. It includes a + €46.3 perimeter effect (+ 5.0%) relating in particular to the acquisition of Regain Polymers (September 2017) and a - 42.2 million exchange rate impact (- 4.5%).

Ceramic Materials (18% of consolidated revenue as of September 30, 2018)

The Ceramic Materials business group’s revenue totaled €637.8 million in the first 9 months of 2018. The - 5.0% year-on-year actual change factors in a significant - €40.9 million negative exchange rate effect (- 6.1%), in particular due to the Brazilian real. 

High Resistance Minerals (26% of consolidated revenue as of September 30, 2018)

The High Resistance Minerals business group’s revenue totaled €943.3 million in the first 9 months of 2018. The + 52.5% year-on-year reported change in revenue factors in a + €258.4 million significant perimeter effect (+ 41.8%) relating to the integration of Kerneos, and to a lesser extent to Zhejiang in China in the Fused Minerals division. The exchange rate impact was substantial at - €24.1 million (- 3.9%).