Automotive slowdown in Europe hits Luxfer’s revenues
LUXFER Group, the materials technology company, based in Salford Quays, has reported lower third quarter revenues after sales were hit by the European slowdown in the automotive sector.
The company, which listed its shares on Wall Street during the summer, said the figures for the three months to the end of September were in line with expectations, which comparitive figures for the same period in 2011 “distorted by exceptional gains.”
Third-quarter net revenue, which excludes rare earth chemical surcharges of $5.3m, was $109.2m, down $4.m from net revenue of $113.2 million for the same period in 2011.
Luxfer said lower European automotive demand hit its Elektron division’s revenue with underlying revenue, excluding translation and the impact of rare earth surcharges, down 8.2%.
It said the fall had been was partly offset by growing sales for high-performance magnesium alloys and new zirconium industrial chemical catalysis products (“Chemcat”).
Chemcat – a key future sector for Luxfer – saw revenues grow 66% with sales of $1.5 million for the quarte.
The group’s Gas Cylinders division’s revenue grew in the quarter by 4.5%, driven by rising composite cylinder sales and higher demand and revenues in medical oxygen and compressed natural gas (“CNG”) alternative fuel markets.
Adjusted ebitda was $20.m in the the quarter was as expected, but below the $24.8m the group generated in Q3 2011.
Chief executive Brian Purves said: “”Our Q3 of 2012 results are in line with our expectations and consistent with trading profit margins in the first half of this year, with comparisons to prior year distorted by the exceptional gains made in Q3 of 2011.
“Strategically we made significant progress in this third quarter of 2012, with good progress in sales of industrial catalyst products, and the acquisition of Dynetek Industries, which strengthens our global position in the growing market for alternative fuel gas containment.
“At a time when many industrial markets and economies remain in or close to recession, we are sowing seeds for future growth and profitability. We expect the recent successful Initial Public Offering on the New York Stock Exchange provides Luxfer with the financial firepower to commercialize the wide range of new products and technologies that we hope to bring to the market in the next few years.”
In the nine months to September 30 both net revenues and ebitda are showing year-on-year increases. So far this year net revenues are $345.4m ($332.2m), while adjusted ebitda is $63.5m ($62.2m 2011).
