DGAP-News: SKW Stahl-Metallurgie Holding AG / Key word(s): Half Year Results SKW Stahl-Metallurgie Holding AG: SKW Metallurgie with solid operative performance 16.08.2012 / 07:36 --------------------------------------------------------------------- SKW Metallurgie with solid operative performance * Group revenues in first half of 2012 at EUR 219.9 million above previous year * EBITDA at EUR 13.5 million despite start-up costs of new plants and challenging economic conditions in important sales regions * Cash flow from operating activities jumps from EUR -1.6 million to EUR 15.0 million * Guidance for 2012 und 2013 confirmed Unterneukirchen (Germany), August 16, 2012. The SDAX-listed specialty chemicals group SKW Metallurgie showed a solid operative performance in the first half of 2012, despite expected start-up costs in the new plants and challenging economic conditions in important sales regions. For instance, Group revenues at EUR 219.9 million were 2% higher than the comparable figure of the previous year at EUR 215.6 million. It should be taken into consideration in this context that while steel production in North America (which is of the essence for Group revenues) increased by 7.2% in the period under review, steel production decreased in the EU by 4.6% and in Brazil by 2.5%. In spite of this development and of the significant start-up costs of the new plants (mainly in Bhutan), EBITDA reached EUR 13.5 million. The comparable figure (adjusted for a non-cash one-off effect from an acquisition) of the previous year amounted to EUR 17 million. Since significant improvements are expected from the new plants for the second half of the year, SKW Metallurgie confirms its guidance for full years 2012 and 2013 despite continued economic uncertainties. Hence, the Executive Board expects for 2012 EBITDA that will operatively correspond to the level of the previous year (yet below the reported figure for 2011), and for 2013 significant improvements, given a stabilization of the global economy. 'The first half year was characterized by start-up costs of the new plants and increasing economic uncertainties. Nevertheless, revenues and earnings were in our expected range. We can therefore confirm our guidance for 2012 and 2013,' commented the SKW Metallurgie Group's CEO Ines Kolmsee. Gross margin at 28.2% increased compared to full year figure of 2011 In the USA, the Chapter XI proceedings of a significant steel client adversely affected some indicators at the end of the second quarter. The gross margin at 28.2% was improved compared to the figure for the full year of 2011 (27.6%). As expected, earnings figures below EBITDA could at half year not reach the comparable figures of the previous year. However, in the second quarter 2012 an improvement after taxes was reached from EUR 3.4 million to EUR 3.6 million. Solid quality of balance sheet - significant improvement of operating cash flow The balance sheet quality continues to be solid at an equity ratio of 38.9% (December 31, 2011: 40.7%), net financial debt of EUR 83.4 million (December 31, 2011: EUR 77.9 million) and a gearing of 0.65 (December 31, 2011: 0.61). Due to efficient working capital management, cash flow from operating activities was very remarkably increased to EUR 15.0 million by June 30, 2012 compared to the first half year of 2011 at EUR minus 1.6 million. Thanks to a comprehensive refinancing of the Group in the first quarter of 2012, the SKW Metallurgie Group has in the long term secured its growth by an optimized finance structure at competitive conditions. Guidance for 2012 und 2013 confirmed despite increasing uncertainties The assessments of experts regarding the development of the world economy in general and of steel production in particular are characterized by increasing macroeconomic uncertainties despite reserved optimism. Based on this macroeconomic situation as well as on the start-up costs of the new plants in the first half year of 2012, the SKW Metallurgie Group continues to expect that in current business year 2012, EBITDA will reach the sound operative results of 2011, yet not fully reach the previous year figure of EUR 31.7 million for reported EBITDA. Full earnings contributions from the new plants (plant expansions in Brazil and the USA, plant acquisition in Sweden, newly erected plants in Russia and Bhutan) continue to be expected for 2013. At that point in time, along with decreasing investments, the Group's free cash flow should be significantly positive, and should be used, as announced, to reduce borrowings. Moreover, the SKW Metallurgie Group continues to regard itself as a dividend share, and intends to let its shareholders participate appropriately in the expected increases in earnings. The report on H1 2012 and further information on the Group can be found online at: www.skw-steel.com. KPIs for SKW Stahl-Metallurgie Holding AG for H1 (in EUR million) |[![CDATA[|[pre|]]]|] H1-2012 H1-2011 Q2-2012 Q2-2011 Group Revenues 219.9 215.6 106.7 114.6 - thereof Cored Wire 102.0 101.2 50.3 53.4 - thereof Powder and Granules 103.4 98.5 49.1 57.8 Gross Margin 28.2% 28.4% 29.8% 28.2% EBITDA adjusted 1 13.5 17.0 7.5 9,7 EBITDA 13.5 19.7 7.5 9,7 - thereof Cored Wire 2.6 6.8 1.2 3,5 - thereof Powder and Granules 10.2 14.6 4.6 6,6 EBITDA Margin adjusted 1 6.1% 7.9% 7.0% 8.5% EBIT adjusted 1 8.6 10.3 5.1 6,0 EBIT 8.6 13.0 5.1 6,0 Earnings before Taxes 6.6 11.9 4.6 5,4 Consolidated Net Result for the Period 3.7 8.0 3.6 3,4 EPS in EUR 2 0.66 1.13 0.53 0.48 Gross Cash Flow 6.3 10.4 Cash Flow from Operating Activities 15.0 -1.6 June 30, 2012 Dec. 31, 2011 Total Assets/Total Equity and Liabilities 328.4 315.7 Equity (incl. non-controlling interests) 127.6 128.4 Net Financial Debt 83.4 77.9 Gearing 0.65 0.61 Equity Ratio (incl. non-controlling interests) 3 38.9% 40.7% Employees 1,022 1,025 |[![CDATA[|[/pre|]]]|] (1) Earnings in Q1-2011 contained a bargain purchase income of EUR 2.7 million. (2) Based on 6,544,930 shares (3) Net financial debt to equity (incl. non-controlling interests) Contact SKW Stahl-Metallurgie Holding AG Christian Schunck Head of IR and Corporate Communications Rathausplatz 11 84579 Unterneukirchen Germany Telephone IR/Press: +49 89 5998923-22 Fax: +49 89 5998923-29 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, Brazil, South Korea, Sweden, Bhutan, Russia the Peoples' Republic of China (2) and India (2 via joint ventures). Shares of SKW Stahl-Metallurgie Holding AG have been listed in Frankfurt Stock Exchange's Prime Standard since December 1, 2006 with ISIN DE000SKWM013 (since August 15, 2011: new ISIN DE000SKWM021), 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. End of Corporate News --------------------------------------------------------------------- 16.08.2012 Dissemination of a Corporate News, transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------- Language: English Company: SKW Stahl-Metallurgie Holding AG Rathausplatz 11 84579 Unterneukirchen Germany Phone: +49 (0)8634 62720-15 Fax: +49 (0)8634 62720-16 E-mail: info@skw-steel.com Internet: www.skw-steel.com ISIN: DE000SKWM021 WKN: SKWM02 Indices: SDAX Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, Hamburg, München, Stuttgart End of News DGAP News-Service --------------------------------------------------------------------- 181836 16.08.2012
DGAP-News: SKW Stahl-Metallurgie Holding AG: SKW Metallurgie with solid operative performance
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