SKW Stahl-Metallurgie Holding AG / Preliminary Results
30.10.2009
Dissemination of a Corporate News, transmitted by
DGAP - a company of EquityStory AG.
The issuer / publisher is solely responsible for the content of this announcement.
---------------------------------------------------------------------------
Press release
Significantly increased demand in Q3
- Consolidated revenues of EUR 147.6 million reflect steel production
- Significant increase in quantities in the third quarter
- Positive EBITDA of EUR 1.7 million; adjusted EBITDA of EUR 6.8 million
- Recovery in steel economy raises hopes for 2010
Unterneukirchen (Germany), October 30, 2009. The SKW Metallurgie Group,
which is listed in the German SDAX small cap index, could show a
significant upside trend in Q3, in particular regarding results. Due to the
high variability of costs as well as the active cost management, the Group
managed to yield a positive EBITDA of EUR 1.7 million for nine months
(according to preliminary figures), despite the economy-related decreases
in revenues.
In order to reach an operative comparability, it should be taken into
consideration that this figure includes burdens amounting to EUR 4.3
million due to raw material inventories, whose current valuation is
significantly above current market prices. The economic and financial
crisis resulted in a significant reduction of SKW Metallurgie's turnover
ratio for inventories; consequently, the inventory value changes have been
of particular significance.
Owing to increasing sales, these effects are particularly strong in Q3 (EUR
3.0 million); however, SKW Metallurgie assumes that these negative effects
will occur in Q4 for the last time and in a significantly reduced order
compared to Q3.
An additional negative factor was the EUR 0.8 million increase in
provisions in connection with the European antitrust proceedings in the
calcium carbide sector.
After adjustment for these two extraordinary factors, EBITDA would have
totaled EUR 6.8 million in the nine-month period.
Operationally, the third quarter showed the expected positive turnaround.
This is clearly shown by the increased demand for the quality products of
SKW Metallurgie; Q3 yielded revenues of EUR 54.4 million and an adjusted
EBITDA of 4.0 million.
For the first nine months, the group has recorded revenues of EUR 147.6
million, which is down by around 50% (as expected) compared to the previous
year's record-breaking figures. This development was primarily due to the
more than 40% downturn in steel production in
SKW Metallurgie's key sales regions of Europe and North America.
Technically demanding solutions for the production of top grade steel
account for more than 90% of SKW Metallurgie's consolidated revenues.
Within the nine-month period, the quantity of steel production increased
during the third quarter, in September in particular, and as a result, so
did demand for SKW Metallurgie's top quality products.
In view of this increasing demand, the Managing Board continues to expect
positive operating EBITDA for 2009 as a whole. Subject to a recovery in the
global economy, a significant increase in revenues and substantially
improved earnings are forecast for 2010.
Publication of the full report for the third quarter of 2009 is scheduled
for November 11.
Contact:
SKW Stahl-Metallurgie Holding AG
Christian Schunck
Head of IR and Group Communications
Fabrikstrasse 6
84579 Unterneukirchen
Germany
Tel.: +49 8634 -617596
Fax: +49 8634-617594
E-Mail: schunck@skw-steel.com
Internet: www.skw-steel.com
About SKW Stahl-Metallurgie Holding AG
SKW Metallurgie is the global market leader for chemical additives for hot
metal desulphurization, and for cored wire used in secondary metallurgy.
The Group's products enable steel-makers to efficiently manufacture
high-quality steel products. Clients include the world's leading companies
in the steel industry. The SKW Metallurgie Group has more than 50 years of
metallurgical know how, and currently operates in more than 40 countries.
What is more, the Group is a leading supplier of Quab specialty chemicals,
which are mainly used in the global production of industrial starch for the
paper industry. The company's operating business is broken down into the
two core segments 'Cored Wire and 'Powder and Granules', and the 'Other'
segment. The SKW Metallurgie Group is headquartered in Germany with
production facilities in France, the US (6), Canada, Mexico, South Korea,
the Peoples' Republic of China (2) and India (2 via joint ventures); the
acquisition of Tecnosulfur (now signed) means that it has added a new
production facility in Brazil.
Shares of SKW Stahl-Metallurgie Holding AG have been listed in Frankfurt
Stock Exchange's Prime Standard since December 1, 2006 with ISIN
DE000SKWM013, and have been included in the SDAX index from June 23, 2008.
DISCLAIMER
This press release contains statements on future developments that are
based on currently available information and involve risks and
uncertainties that could cause the actual results to differ from these
forward-looking statements. These risks and uncertainties include, for
example, unpredictable changes in political and economic conditions,
particularly in the steel and paper industry, the competitive situation,
interest and currency risks, technological development as well as other
risks and unexpected circumstances. SKW Stahl-Metallurgie Holding AG and
its Group companies accept no obligation to update such forward-looking
statements.
SKW Stahl-Metallurgie Holding AG
Christian Schunck
Head of IR and Group Communications
Fabrikstrasse 6
84579 Unterneukirchen
Germany
Tel.: +49 8634 -617596
Fax: +49 8634-617594
E-Mail: schunck@skw-steel.com
Internet: www.skw-steel.com
30.10.2009 |[![CDATA[|[a href="http://www.dgap.de"|]Financial News transmitted by DGAP|[/a|]]]|]
---------------------------------------------------------------------------
Language: English
Company: SKW Stahl-Metallurgie Holding AG
Fabrikstrasse 6
84579 Unterneukirchen
Deutschland
Phone: +49 (0)8634 61 511
Fax: +49 (0)8634 61 513
E-mail: info@skw-steel.com
Internet: www.skw-steel.com
ISIN: DE000SKWM013
WKN: SKWM01
Indices: SDAX
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, München, Düsseldorf, Stuttgart, Hamburg
End of News DGAP News-Service
---------------------------------------------------------------------------
DGAP-News: SKW Stahl-Metallurgie Holding AG: Significantly increased demand in Q3
| Source: EQS Group AG