Page 31 - Glass Machinery Plants & Accessories no. 4/2018

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< 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 52.6 million, compared
with EUR 59.9 million 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 58.1 million and thus increased by EUR 39.4
million 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 14.2 million to EUR 726.9
million as of 28 February 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 totalled EUR 10.8 million in the first
quarter of 2018, as against EUR 15.1 million in the prior-
year quarter. One substantial focus of capital expenditure
was on the expansion of inhaler production in the US
and additions to the product portfolio. Other capital
expenditure related to a scheduled furnace overhaul. On
9 April 2018, Gerresheimer exercised the call option to
acquire the remaining 25% of shares in Triveni Polymers
Private Ltd., New Delhi. The purchase price for this share
is expected to be in the low double-digit million Euro range.
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 4 million on revenues and EUR 1 million on
adjusted EBITDA. Given the production locations in the
US 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
1.4 billion. For adjusted EBITDA at constant exchange
rates, Gerresheimer projects a range of between EUR 305
million and EUR 315 million. 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%.