May 9, 2011

Tessenderlo records strong operational performance for Q1

Belgian chemicals company Tessenderlo's first quarter 2011 revenue increased 18.3% to EUR670.9 million (US$964.8 million), with all but one of the group's reported segments recording double digit revenue growth.

REBIT for the first quarter was materially higher than a year ago, at EUR39.4 million (US$56.7 million), while REBITDA of EUR65.8 million (US$94.6 million) was more than double last year's amount.

Profit for the period was strong at EUR30.1 million (US$43.3 million).

First quarter 2011 results confirm a strong start to the year for Tessenderlo Group. Group revenue, REBIT and REBITDA all grew solidly in the first quarter of 2011 in comparison to the low first quarter of 2010. Each operating segment made a positive contribution, reporting improved top line results as well as profitability. As a result of the group's better operational performance, profit for the quarter was EUR30.1 million (US$43.3 million). and represented a substantial improvement to the loss recorded in the first quarter of 2010.

The balance sheet remains solid and another milestone was achieved in the group's funding strategy. Net financial debt for the quarter was EUR176.8 million (US$254.3 million), well below the same period last year and only a slight increase versus the position at the end of December 2010. At the end of April, the group concluded an amendment to its syndicated credit facility, signed at the end of February 2010, which provides for improved terms and conditions, as well as an extended maturity of the facilities.

Further steps taken demonstrate consistent execution of group strategy. At the start of February, the group announced the sale of its aromas and esters activities based in the UK. In March, the group announced the expansion of its core sulphur activities in the US. This expansion covers a long term sulphur processing agreement with a new customer, as well as an investment to increase sulphur fertiliser capacity to meet growing demand from the agriculture sector. Taken together, these actions provide further evidence that the group is making progress in carrying out its strategy.