SKW Stahl-Metallurgie Holding AG / Half Year Results 13.08.2010 08:14 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 SKW Metallurgie on Clear Growth Path * Half-year revenues more than doubled to EUR 188.8 million * Dynamic growth of EBITDA from EUR 0.8 million to EUR 16.1 million * EBITDA-Guidance 2010 lifted from > EUR 20 million to > EUR 24 million Unterneukirchen (Germany), August 13, 2010. The SDAX-quoted Specialty Chemicals Group SKW Metallurgie grew dynamically in the first half of 2010. Based on high demand from the steel industry and on the acquisition of the Brazilian company Tecnosulfur, corporate revenues were improved by more than 100% to EUR 188.8 million (H1-2009: EUR 93.2 million). The EBITDA - Earnings before interest, taxes, depreciation, and amortization - of the first half year was increased from EUR 0.8 million in crisis-coined 2009 to EUR 16.1 million in the current year of 2010; accordingly, the corporate EBITDA margin improved from near zero to 8.5%. Hence, the SKW Metallurgie Group has achieved the majority of its full-year EBITDA goal of EUR 20 million already at half-year, and has therefore lifted its EBITDA-guidance for full year 2010 to at least EUR 24 million. Despite continuously high investments into new production plants in Bhutan and Russia (from which significant positive contributions are first expected in 2011), the SKW Metallurgie Group continues to command absolutely solid balance sheet figures, with an equity ratio of 43.2% and a debt ratio (gearing) of 0.44. 'The first half of 2010 worked out very well for us. Besides the generally growing business with our global steel clients, Brazilian company Tecnosulfur (acquired only at the end of 2009) has comprehensively fulfilled the expectations which were also vested in it by our investors during the capital increase. We also see the further course of business year 2010 as generally positive', says SKW Metallurgie's CEO, Ines Kolmsee. EPS improved from EUR -0.39 to EUR 0.75 The gross margin of the SKW Metallurgie Group increased from 26.4% in the comparable period of 2009 to 27.4%. EBIT of the first half year increased from EUR -2.2 million to EUR 10.3 million. As well before taxes, a significant gain could be recorded again at EUR 8.9 million (H1-2009: EUR -3.5 million). After taxes and minority shares, a net gain of EUR 4.9 million remains (H1-2009: loss of EUR 2.6 million). Based on slightly more than 6.5 million shares, this results for the first half of 2010 in an EPS of EUR 0.75 after EUR -0.39 in the first half of 2009. Balance sheet quality still very solid despite high investments The Group cash flow is currently coined by significantly increasing working capital due to the economy, and by high investments. In particular, an amount of EUR 12.1 million was invested in assets in the first half of 2010, primarily for the ongoing construction of new plants in Bhutan and Russia. As had been expected, working capital increased by EUR 11.2 million. Accordingly, a positive gross cash flow of EUR 7.3 million (H1-2009: EUR -0.7 million) was recorded; however, the free cash flow amounted to EUR -16.0 million (H1-2009: EUR 14.7 million). Despite continuously high investments in the expansion into growth and emerging nations, the SKW Metallurgie Group continues to command very solid balance sheet ratios with a debt ratio of 0.44 (Dec. 31, 2009: 0.30) and an equity ratio of 43.2% (Dec. 31, 2009: 47.1%). Further details on the company and its full report on the first half of 2010 can be found online at: www.skw-steel.com Contact person: SKW Stahl-Metallurgie Holding AG Christian Schunck Head of IR and Corporate Communication Fabrikstrasse 6 84579 Unterneukirchen Germany Tel: +49 8634-62720-15 Fax: +49 8634-62720-16 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 desulfurization, 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, Brazil, South Korea, the People's Republic of China (2) and India (2 via joint venture). 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. KPIs for SKW Stahl-Metallurgie Holding AG (in EUR million) |[![CDATA[|[pre|]]]|] H1-2010 H1-2009 Consolidated revenues 188.8 93.2 - thereof Cored Wire 88.0 38.6 - thereof Powder and Granules 90.3 47.0 Gross margin 27.5% 26.4% EBITDA 16.1 0.8 - thereof Cored Wire 6.6 0.6 - thereof Powder and Granules 11.0 0.2 EBITDA margin 8.5% 0.9% EBIT 10.3 -2.2 Pre-tax earnings 8.9 -3.5 Consolidated earnings for the year (incl. minority interests) 5.8 -2.7 Consolidated earnings for the year (excl. minority interests) 4.9 -2.6 Earnings per share in EUR 1 0.75 -0.39 Gross cash flow 7.3 -0.7 June 30, 2010 Dec. 31, 2009 Total equity and liabilities 288.5 231.7 Equity (incl. minority interests) 124.5 109.0 Net financial debt 55.1 32.8 Gearing ² 0.44 0.30 Equity ratio (incl. minority interests) 43.2% 47.0% Number of employees (as of end of period) 734 715 |[![CDATA[|[/pre|]]]|] (1) Based on the number of shares of 6,544,930 (2) Net financial debt to equity SKW Stahl-Metallurgie Holding AG Christian Schunck Head of IR and Corporate Communication Fabrikstrasse 6 84579 Unterneukirchen Germany Tel: +49 8634-62720-15 Fax: +49 8634-62720-16 E-mail: schunck@skw-steel.com Internet: www.skw-steel.com 13.08.2010 08:14 Ad hoc announcement, Financial News and Press Release distributed by DGAP. Medienarchiv at |[![CDATA[|[a href="http://www.dgap-medientreff.de"|]www.dgap-medientreff.de|[/a|]]]|] and |[![CDATA[|[a href="http://www.dgap.de"|]www.dgap.de|[/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 Hamburg, München, Düsseldorf, Berlin, Stuttgart End of News DGAP News-Service ---------------------------------------------------------------------------
DGAP-News: SKW Stahl-Metallurgie Holding AG: SKW Metallurgie on Clear Growth Path
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