Gerresheimer raises earnings per share in first quarter due to US tax reform

Düsseldorf (ots) -

- Revenues at constant exchange rates EUR 299.2m in first quarter of
2018, as expected, stable relative to prior-year period; organic
revenue growth 0.4%
- Adjusted EBITDA at constant exchange rates EUR 54.9m, as budgeted
below the EUR 59.0m prior-year figure
- Development of US dollar against EUR led to 4.1% decrease in
revenues to EUR 290.4m and in adjusted EBITDA to EUR 52.6m
- Adjusted earnings per share increased to EUR 1.85, compared with
EUR 0.60 in prior-year quarter, primarily due to effects of US tax
reform
- Guidance for 2018 confirmed
- Call option for acquisition of remaining 25% of shares in Triveni
Polymer Private Ltd. exercised on April 9, 2018

Gerresheimer AG completed the first quarter of the financial year
2018 (December 1, 2017 to February 28, 2018) as budgeted with
revenues at constant exchange rates stable relative to the prior year
and adjusted EBITDA at constant exchange rates below the prior-year
figure. "The first quarter went as expected. I would particularly
like to emphasize the rise in adjusted earnings per share, which is a
one-time effect in this quarter, notably due to the US tax reform.
Our shareholders will also benefit from this in the dividend next
year. And to further advance our regional expansion, we have decided
to take over in its entirety our Indian subsidiary for pharmaceutical
plastic packaging by acquiring the remaining 25%", said Rainer
Beaujean, Management Board Spokesperson and Chief Financial Officer.

The Gerresheimer Group increased revenues at constant exchange
rates from EUR 298.0m in the prior-year quarter to EUR 299.2m in the
first quarter of 2018. On an organic basis-meaning adjusted for
exchange rate effects, acquisitions and divestments-revenues
consequently went up by 0.4% on the prior-year quarter. Revenues from
tooling were down in the quarter as budgeted. There was good sales
performance in medical plastic systems. The inhaler project in North
America is performing especially well. It more than made up for lower
demand from other medical plastic systems with a number of customers
for whom Gerresheimer is the sole supplier. Pharmaceutical plastic
packaging revenues picked up in Brazil and India significantly. Due
among other factors to the severe influenza season, there was also
fairly strong demand for plastic vials for prescription drugs in the
USA. By contrast, revenues from primary packaging glass in North
America were once again down. The relatively pronounced reticence on
the part of a number of large pharma customers there continues and
the situation is improving only gradually. However, good revenue
performance with glass primary packaging in all other regions was
able to fully compensate for this, notably as a result of good sales
of cosmetic glass in Europe and pharma glass in China. Due mainly to
the change in the USD exchange rate, reported revenues fell in the
same period from EUR 302.8m to EUR 290.4m.

Adjusted EBITDA at constant exchange rates decreased as expected
from EUR 59.0m in the prior-year quarter to EUR 54.9m in the first
quarter of 2018. The revenue performance in the engineering and
tooling business had a slight negative impact on adjusted EBITDA
here. Adjusted EBITDA was also adversely affected by higher costs of
plastic granulate, which Gerresheimer can only pass on to customers
with a time lag of several months. In the sales of Primary Packaging
Glass Division, lower revenues in the North America region with the
attended lower utilization of installed capacity were a key factor
behind a decrease in adjusted EBITDA. As in the prior-year quarter,
there was also a scheduled furnace overhaul. Adjusted EBITDA after
exchange rate effects came to EUR 52.6m, compared with EUR 59.9m in
the first quarter of 2017. Consequently, at 18.1%, the adjusted
EBITDA margin is thus likewise below the 19.8% recorded in the
prior-year quarter.

Adjusted net income after non-controlling interests was EUR 58.1m
and thus increased by EUR 39.4m compared to the prior-year figure of
EUR 18.7m, mainly as a result of the US tax reform. Accordingly,
adjusted earnings per share after non-controlling interests came to
EUR 1.85 in the first quarter of 2018, compared with a prior-year
figure of EUR 0.60.

Net financial debt increased slightly by EUR 14.2m to EUR 726.9m
as of February 28, 2018. Calculated as the ratio of net financial
debt to adjusted EBITDA over the last twelve months, adjusted EBITDA
leverage stood at 2.4 times, which is below the medium-term target of
2.5 times.

Capital expenditure totaled EUR 10.8m in the first quarter of
2018, as against EUR 15.1m in the prior-year quarter. One substantial
focus of capital expenditure was on the expansion of inhaler
production in the USA and additions to the product portfolio. Other
capital expenditure related to a scheduled furnace overhaul.

On April 9, 2018, Gerresheimer exercised the call option to
acquire the remaining 25% of shares in Triveni Polymers Private Ltd.,
New Delhi (India). The purchase price for this share is expected to
be in the low double-digit million euro range.

Outlook

Gerresheimer's expectations for the financial year 2018 remain as
set out in the following, in each case based on constant exchange
rates. The figures are calculated using actual average exchange rates
in the financial year 2017. For the US dollar-which is expected to
have the largest currency impact on the Group currency, accounting
for about a third of Group revenues budgeted for the financial year
2018 or about 40% of adjusted EBITDA- the Company has assumed an
exchange rate of approximately USD 1.12 to EUR 1.00. As before, a
rise or fall in the US dollar against the euro by about one cent has
an impact of around EUR 4m on revenues and EUR 1m on adjusted EBITDA.
Given the production locations in the USA and financial debt in US
dollars, fluctuations in the US dollar/euro exchange rate have no
material effect on Group earnings performance and essentially only
lead to translation effects.

In terms of revenues, Gerresheimer anticipates the lower end of
the range to correspond with the figure for the financial year 2017.
At the upper end, the Company expects revenues at constant exchange
rates of up to around EUR 1.4bn. For adjusted EBITDA at constant
exchange rates, Gerresheimer projects a range of between EUR 305m and
EUR 315m. Capital expenditure in 2018 will amount to around 8% of
revenues at constant exchange rates. For the long term, the Company
targets Gx ROCE to be around 15%.

The full quarterly report is available at:
www.gerresheimer.com/en/investor-relations/reports

Contact:
Gerresheimer AG
Klaus-Bungert-Strasse 4
40468 Düsseldorf
Germany

Jens Kürten
Group Senior Director Communication & Marketing
Phone:+49-211-6181-250
Telefax: +49-211-6181-241
E-Mail j.kuerten@gerresheimer.com
Internet: www.gerresheimer.com

Press Release April 12, 2018 Page 4 / 4

Original-Content von: Gerresheimer AG, übermittelt durch news aktuell