HELM continues to expand market position
1. BUSINESS PROGRESS
Following in the wake of several good years, the latest financial year has ended with good profits on sales that were again higher than the year before. The family-owned company has further expanded its position in the international marketing of chemicals, pharmaceuticals and fertilizer.
HELM AG in Hamburg, its global subsidiaries and companies in which a participating interest is held, all contributed to this good result.
- in millions euro -
| TURNOVER | 2004 | 2003 | Increase |
| World sales | 4.094 | 3.458 | + 18% |
| External sales, consolidated | 2.229 | 1.900 | + 17% |
PROFIT |
|||
| Results of ordinary business activities before tax | 50.7 | 42.4 | + 19% |
| Group net profit for year after taxes | 31.6 | 33.6 | - 6% |
Pre-tax profits were up by 19%.
The Group net profit for the year after taxes is 6% below the prior year's. The tax bill rose because in the prior year some companies had still been able to carry losses forward.
Across the globe 1,183 people (1,174) worked for the Group, 490 of them in Germany. A further 350 work in companies where there is a minority holding.
Equity was up by 24 million euros at 31.12.2004 to reach 133 million euros (prior year 109 million) and has more than doubled since 2000 (59 million).
3. EVALUATION OF SITUATION
The HELM Group petrochemicals, pharma and crop protection units developed especially well, as did fertilizer in the 2nd half of the year.
The overall growth in the chemicals industry and the continuous rise in the price of oil were the key factors behind increased turnover for the HELM Group.
Inside HELM the reasons for the good business results and an enhanced market position are:
- continuity in matters of organization and management at HELM AG
- skilled staff with a professional work ethic who strongly identify with the company, low staff fluctuation rates
- further streamlining of products and markets
- the blue-chip chemicals companies are drawing more heavily on the services of HELM's marketing organization
- independent family AG with a solid equity ratio
4. PROSPECTS AND OUTLOOK FOR THE FINANCIAL YEAR 2005
The high levels of trading profits reached in the 2nd half of 2004 have not fallen off during the 1st half of 2005. Both sales and profits are returning good figures comparable with the prior year's.
The petrochemicals, fertilizer and pharmaceuticals businesses deserve special mention.
HELM companies outside Germany and the companies in which there is a participating interest are all continuing to progress well.
In May there were first signs of an international weakening of sales and profits, especially in the petrochemicals field.
Even if it is to be assumed that business in the 2nd half of 2005 will be noticeably slower than in the first six months, 2005 is expected to produce another respectable overall profit.
Major steps were taken to consolidate and expand the market position with three new joint ventures on the Arabian peninsula:
- Joint venture for the production of 1 million tonnes of methanol in Sohar/Oman.
Methanol Holding International, MHIL, with HELM AG as partner, has a 70% share of this new joint venture, Oman Zawawi
Establishment - OMZEST - holds the other 30%.
The process technology is from ICI. Production start is planned
for mid 2007.
- A joint venture for the annual production of 460,000 tonnes of acetic acid
- A joint venture for the annual production of 300,000 tonnes of vinyl acetate monomer.
The two latter joint ventures are both jointly owned firms held by Sipchem, a Saudi-Arabian partner with a 75% stake, and HELM with 25%. The production facilities are in Al Jubail, Saudi Arabia. Production is due to commence in the 2nd half of 2008. HELM will be in charge of marketing production everywhere apart from the Middle East.
The Arabian Gulf region is increasingly developing into a centre for energy-dependent commodity chemicals and HELM will be playing an important marketing role, including when the political and business environment is difficult.
3. Juni 2005
H E L M A G