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.
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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
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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
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