SKW Stahl-Metallurgie Holding AG / Quarter Results 15.05.2008 Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- Press Release SKW Metallurgie Increases Sales and Results  Quarterly sales climb from 50 million to 81 million  Adjusted EBITDA margin increases from 6.4% to 8.8%  Guidance for 2008 confirmed: Sales 310-330 million and EBITDA 23-25 million Unterneukirchen (Germany), May 15, 2008. SKW Stahl-Metallurgie Holding AG had an excellent start into business year 2008. Sales in the first quarter of 2008 increased by 62%, to 81.0 million. The main reason was the inclusion of the ESM Group, which was acquired in the previous year. Earnings before interest, taxes, depreciation, and amortization (EBITDA) increased by 6% to 7.1 million. Adjusted for a one-off effect realized in Q1/2007 from the purchase of the 'Quab' business (bargain purchase), hence focused on the strong operative Group performance, EBITDA increased by 122%. The operative EBITDA margin jumped accordingly from 6.4% to 8.8%. Given the excellent start of the new business year and positive signals from client industries, SKW Metallurgie confirms its 2008 guidance of 310-330 million for sales and 23-25 million for EBITDA. 'We had an excellent start into business year 2008. Besides sales increases of more than 60%, improving operating results by 122% is a main cause for optimism. Despite ongoing currency burdens, we foresee for 2008 a continuous improvement of sales and EBITDA,' says Chairwoman of the Executive Board (CEO) of SKW Metallurgie, Ines Kolmsee. Adjusted After-Tax Results Up by More Than 80% The improved operating performance of the Group is clearly shown by comparing the first quarter gross margins of 2008 with 2007 (up from 22.9% to 27.1%). Adjusted for the bargain purchase of the 'Quab' acquisition, EBIT was improved from 2.6 million to 5.1 million. Adjusted after-tax results increased to 3.3 million, compared to 1.8 million in the previous year. Based on the unchanged number of 4,422,250 shares outstanding, this yields an improvement of adjusted EPS from 0.41 to 0.76. Segment 'Powder and Granules' With Jump in Sales and Results Looking at the individual segments, the segment 'Powder and Granules', which mainly offers technologically sophisticated solutions for hot metal desulphurization, improved sales from 11.7 million to 41.7 million and EBITDA from 1.0 million to 5.1 million. These increases are mainly due to the ESM Group, which was first consolidated in Q4/2007. However, sales and results were also improved on a pro forma basis without ESM. Quality of Balance Sheet Further Improved Given the strong operating performance, the already solid balance sheet structure of the Group was further improved. The equity ratio improved slightly from 42.0% (year-end) to 42.9%. Net debt was significantly reduced from 41.8 million in 2007 to 38.7 million. Due to the good business development, cash inflow from operating activities was 3.9 million (Q1/2007: -1.8 million). Optimism for 2008 Confirmed By Strong First Quarter Given the strong development during the first quarter and continuously positive signals from clients - in particular, the US-American steel industry - SKW Metallurgie remains very optimistic for the full year 2008. Moreover, 2008 will be the first full year in which the ESM Group will be consolidated in the SKW Metallurgie Group. Therefore, the Executive Board expects sales to increase from 239 million (2007) to 310-330 million (2008) and EBITDA to increase from 21.1 million (adjusted for one-time effects: 17.3 million) in 2007 to 23-25 million in 2008. In the mid-term (through 2011), the Executive Board expects that SKW Metallurgie sales will increase to 360 million and EBITDA to approximately 33 million. The expansion into emerging markets with strong growth potential will be continued in 2008 as scheduled. The full quarterly report of SKW Stahl-Metallurgie Holding AG may be found on the Internet at www.skw-steel.com. Key Figures of SKW Stahl-Metallurgie Holding AG (in million)<pre> Q1 2008 Q1 2007 1 Change Sales 81.0 50.0 +62% Gross margin 27.1% 22.9% +420 BP EBITDA 7.1 6.7 +6% EBITDA comparable2 7.1 3.2 +122% EBITDA margin comparable2 8.8% 6.4% +240 BP EBIT 5.1 6.1 -16% EBIT comparable2 5.1 2.6 +96% EBT 4.5 6.1 -26% Net income 3.3 5.3 -38% Net income comparable2 3.3 1.8 +83% EPS () 0.76 1.20 -36% EPS () comparable2 0.76 0.41 +85% Cash inflow from operating activities 3.9 -1.8 n/a Mar. 31, 2008 Dec. 31, 2007 Total assets 175.9 181.3 Consolidated equity 75.4 76.1 Net financial position (NFP) -38.7 -41.8 Gearing (= NFP ./. Consolidated equity) -51% -55% Equity ratio 42.9% 42.0% </pre> (1) Quab consolidated as of January 16, 2007 (2) 'Comparable' means adjusted for the bargain purchase, hence focused on the strong operative Group performance Contact: SKW Stahl-Metallurgie Holding AG Christian Schunck Head of Investor Relations and Corporate Communications Fabrikstrasse 6 84579 Unterneukirchen Germany Phone: +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 world market leader for numerous chemical additives for hot metal desulphurization, and for cored wire used in secondary metallurgy. The Groups products enable steel makers to efficiently manufacture high-quality steel products. Among their clients are the world-leading steel corporations. The SKW Metallurgie Group has more than 50 years of metallurgical know how, and is today active in more than 40 countries. Approximately 44% of its turnover is generated in Europe and approx. 42% in the NAFTA region (2007; ESM sales included as of first consolidation). Moreover, 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. SKW Metallurgies operations are structured into the three business segments 'Cored Wire', 'Powder and Granules', and 'Quab.' SKW Metallurgie Group Headquarters are located in Germany. Production sites are situated in France, the USA (6), Canada, South Korea, the PR of China (2), and India (2 in a joint venture). Since 1 December 2006, the shares of SKW Stahl-Metallurgie Holding AG have been quoted in the Prime Standard segment of the Stock Exchange in Frankfurt am Main (Germany): the ISIN is DE000SKWM013. 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, unforeseeable changes to political and economic conditions, in particular in the steel and paper production industry, the competitive situation, the development of interest rates and exchange rates, technological developments and 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 Investor Relations and Corporate Communications Fabrikstrasse 6 84579 Unterneukirchen Germany Phone: +49 8634-617596 Fax: +49 8634-617594 E-Mail: schunck@skw-steel.com Internet: www.skw-steel.com DGAP 15.05.2008 --------------------------------------------------------------------------- Language: English Issuer: SKW Stahl-Metallurgie Holding AG Fabrikstrasse 6 84579 Unterneukirchen Deutschland Phone: +49 (0)8634 61 7596 Fax: +49 (0)8634 61 7594 E-mail: info@skw-steel.com Internet: www.skw-steel.com ISIN: DE000SKWM013 WKN: SKWM01 Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, München, Stuttgart End of News DGAP News-Service ---------------------------------------------------------------------------
DGAP-News: SKW Stahl-Metallurgie Holding AG: SKW Metallurgie Increases Sales and Results
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