DGAP-News: SKW Stahl-Metallurgie Holding AG / Key word(s): Quarter Results SKW Stahl-Metallurgie Holding AG: SKW Metallurgie with solid profits in Q1 2013 15.05.2013 / 07:08 --------------------------------------------------------------------- SKW Metallurgie with solid profits in Q1 2013 * Consolidated revenues of EUR 87.8 million characterized by weaker demand for steel * Solid EBITDA of EUR 5.0 million despite lower revenues * Gross margin up slightly once again * Investment phase completed * Confirmation of the cautiously optimistic outlook for 2013 Unterneukirchen (Germany), May 15, 2013. SKW Metallurgie, a global specialty chemicals group, got off to a solid start in fiscal year 2013 in view of the continued economic uncertainties in the steel industry, which is key for the Group. In particular the substantial downturn in steel production in Europe (EU: -5.4%), where the market is negatively impacted by the ongoing financial and debt crisis, and in the USA (-7.6%) in the first quarter of 2013 mean that consolidated revenues have fallen substantially compared to the same period of the previous year from EUR 113.2 million to EUR 87.8 million. In spite of this, however, the SKW Metallurgie Group recorded a solid EBITDA of EUR 5.0 million (Q1 2012: EUR 6.0 million). The EBITDA margin has improved compared to the same period of the previous year from 5.3% to 5.7%. Profits after taxes are also significantly higher. In view of the solid start to the fiscal year and assuming that activities are to recover during the course of 2013, the Executive Board is forecasting moderate revenue and sales growth and believes that there is notable earnings potential due to the increasing contributions to earnings from the new plants. 'Despite the production downturn in the steel industry, we have succeeded in recording pleasing profitability. As forecast, the improvements in earnings from the new plants are having an increasingly positive impact,' commented the SKW Metallurgie Group's CEO, Ines Kolmsee. Gross margin increased to 30.6% The Group increased its gross margin, defined as the sum of total operating revenue and material costs to revenues, substantially year-on-year to 30.6% (Q1 2012: 27.7%) through, inter alia, further increases in production efficiency, and a margin-optimized product mix. As a result of a significantly lower tax rate, profits after taxes increased from EUR 0.1 million in Q1 2012 to EUR 0.7 million. Earnings per share totaled EUR 0.19 (Q1-2012: EUR 0.13). Investment phase completed As announced, the Group's most recent phase of expansion and investment has been completed. As a result, in 2013 the SKW Metallurgie Group is to focus, in particular, on maintenance investments. Accordingly, the net cash used in investing activities in the period under review of EUR 1.6 million is clearly below the comparable figure in Q1 2012 of EUR 4.6 million. The cash flow from operating activities (net cash flow) improved substantially from EUR 0.6 million in Q1 2012 to EUR 1.4 million. The quality of the balance sheet also improved once again compared to the end of 2012. For instance, the equity ratio increased to 41.0% (December 31, 2012: 40.2%). Net financial debt fell slightly to EUR 73.6 million (December 31, 2012: EUR 73.9 million). Correspondingly, gearing fell from 0.61 to 0.59. Confirmation of the cautiously optimistic outlook for 2013 The economic uncertainties, which could be seen in the first few months of 2013 and which had increased once more, as well as what are mostly still unresolved problems in the sovereign debt crisis in key European countries mean that it is still difficult to forecast business. A large number of experts believe that there are increasingly high risks as to whether the anticipated recovery in the global economy will actually occur in the second half of 2013, which would also have major consequences for the forecast from the World Steel Association industry analysts for steel production. Accordingly, The SKW Metallurgie Executive Board believes that there will be no notable impetus from Europe in the current fiscal year. A moderate increase is forecast for the North American steel market for the full year, despite the weaker start to the year. In addition, above-average growth in emerging nations might also have a positive effect. However, in Brazil, as announced and irrespective of macroeconomic developments, competition has become more intense for key sales markets for the SKW Metallurgie Group. On the whole, in view of the solid start to fiscal year, the Executive Board is forecasting moderate revenue and sales growth - assuming that economic activities recover during the course of the year. Earnings potential is seen in growing earnings contributions from the new plants in Bhutan, Russia and Sweden and from the plant expansion in Brazil. In terms of the balance sheet, in 2013 as a result of the preliminary conclusion of the group's expansion and corresponding lower capital expenditure, the Executive Board is forecasting a positive free cash flow, which might, inter alia, lead to a further reduction in net financial debt. The report on Q1 2013 and further information on the Group can be found online at: www.skw-steel.com. Contact SKW Stahl-Metallurgie Holding AG Christian Schunck Head of IR and Corporate Communication 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 The SKW Metallurgie Group 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. KPIs for SKW Stahl-Metallurgie Holding AG for Q1 (in EUR million) <pre> Q1 2013 Q1 2012 Consolidated revenues 87.8 113.2 - thereof Cored Wire 40.2 51.7 - thereof Powder and Granules 41.9 54.3 Gross margin 30.6% 27.7% EBITDA 5.0 6.0 - thereof Cored Wire 1.7 1.4 - thereof Powder and Granules 2.3 5.6 EBITDA margin 5.7% 5.3% EBIT 2.3 3.5 Earnings before taxes 1.0 2.0 Consolidated net income for the period 0.7 0.1 Earnings per share in EUR 1 0.19 0.13 Cash flow from operating activities 1.4 0.6 March 31, 2013 Dec. 31, 2012 Total assets 303.4 299.6 Equity ratio (incl. non-controlling interests) 124.5 120,6 Net financial debt 73.6 73.9 Gearing 2 0.59 0.61 Equity ratio (incl. non-controlling interests) 41.0% 40.2% Employees 1,034 1,011 </pre> Taking the changes under IAS 19 into account, figures for 2012 adjusted accordingly (1) Based on 6,544,930 shares (2) Net financial debt to equity (incl. non-controlling interests) End of Corporate News --------------------------------------------------------------------- 15.05.2013 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 --------------------------------------------------------------------- 211140 15.05.2013
DGAP-News: SKW Stahl-Metallurgie Holding AG: SKW Metallurgie with solid profits in Q1 2013
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