DGAP-News: SKW Stahl-Metallurgie Holding AG / Key word(s): Quarter
Results
SKW Stahl-Metallurgie Holding AG: Operative EBITDA margin up to 9.1%
in Q3
15.11.2013 / 07:09
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Operative EBITDA margin up to 9.1% in Q3
* Adjusted operative EBITDA improves from EUR 4.1 million to EUR 7.9
million in Q3
* Positive free cash flow employed to further reduce net financial debt
* Outlook for 2013 reiterated - confident for 2014
Unterneukirchen (Germany), November 15, 2013. The global specialty
chemicals group SKW Metallurgie has increased its profitability
significantly in the first nine months of 2013. The operative EBITDA margin
increased after three quarters from 5.3% in 2012 to 6.7% in 2013; and in
the third quarter, it increased from 4.3% (Q3 2012) to 9.1%. In absolute
figures, operative EBITDA also improved, both in the nine-month period (9M
2013: EUR 17.6 million; 9M 2012: EUR 16.9 million) as well as in the third
quarter (Q3 2013: EUR 7.9 million; Q3 2012 EUR 4.1 million). This success
was possible even though the Group was confronted with a downturn in steel
production on the particularly important markets in the EU (-4.2%), USA
(-4.0%) and Brazil (-0.6%). Lower steel production and other external
influences on currencies and raw materials meant that nine-month revenues
fell to EUR 262.9 million (9M 2012: EUR 315.4 million) and in the third
quarter to EUR 86.7 million (Q3 2012: EUR 95.4 million). In order to
increase the operative focus of our financial reporting, adjustments were
made in the period under review. These related, in particular, to
non-realized (thus non-cash) currency effects, mostly in valuing
inter-company, longer-term loans. The special factors adjusted were
substantially negative in the nine-month period at EUR 2.7 million; however
in 9M 2012 they were significantly positive at EUR 3.0 million.
Ines Kolmsee, the SKW Metallurgie Group's CEO, commented: 'We have
consistently started to implement our efficiency program 'Every Penny
Counts' (EPC). We are expecting notable successes already in 2014. If
economic growth is stable, these should bring us back to our former
profitability with EBITDA margins of more than seven percent.'
Accelerated debt reduction thanks to high free cash flow
The SKW Metallurgie Group's capital expenditure has been reduced
substantially now that the expansion and investment phase has been
completed. As a result, and thanks to efficient net working capital
management as well as solid operating results, free cash flow in the first
nine months rose by EUR 18.3 million to EUR 13.0 million. These funds have
been used, as announced, to reduce net financial debt. This fell faster
than expected from EUR 73.9 million at the end of 2012 to EUR 65.4 million
(September 30, 2013). The Group continues to have excellent financials with
an equity ratio of 42.4% (end of 2102: 40.2%) and gearing of 0.58 (December
31, 2012: 0.61).
Outlook: Operative EBITDA higher than previous year - confidence for 2014
Steel production is not expected to recover notably in the last quarter of
the year. As a result, the Group is continuing to forecast consolidated
sales for 2013 that will not reach the previous year's figure (EUR 404.6
million), as a result of the economy. Operative EBITDA after the first nine
months of 2013 already totaled EUR 17.6 million. As a result, the Executive
Board is forecasting operative EBTIDA in 2013 as a whole to at least meet
the previous year's figure of EUR 19.5 million. The free cash flow is also
expected to be significantly positive in the year as a whole, which will
lead to net financial debt which is lower than the previous year. From
2014, as announced, significant EBITDA increases are expected from the
efficiency program 'Every Penny Counts' (EPC), which was launched in the
current year. As a result, if economic growth is stable, the Group aims to
return to its former profitability with EBITDA margins of more than seven
percent.
The report on the first three quarters of 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 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
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 (from August 15, 2011: new ISIN DE000SKWM021).
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 Metallurgie Group
after the first three quarters of 2013 (in EUR million)
<pre>
9M 2013 9M 2012 Q3 2013 Q3 2012
External revenues 262.9 315.4 86.7 95.4
- thereof Cored Wire 121.3 143.9 40.3 41.9
- thereof Powder and Granules 124.9 149.8 41.6 46.4
EBITDA (operative) 1 17.6 16.9 7.9 4.1
Gross margin 32.1% 29.4% 33.8% 30.5%
EBITDA margin (operative) 1 6.7% 5.3% 9.1% 4.3%
EBIT (operative) 1 9.3 9.4 5.1 1.5
Earnings before taxes (operative) 1 5.9 6.4 4.1 0.5
Consolidated net income for the period (SKW) 1.7 5.7 1.2 1.4
Earnings per share in EUR 2 0.25 0.87 0.18 0.21
Cash flow from operating activities 9.7 8.5
Free cash flow 13.0 -5.3
Sept. 30, 2013 Dec. 31, 2012
Total assets 266.4 299.6
Equity ratio (incl. non-controlling interests) 112.9 120.6
Net financial debt 65.4 73.9
Gearing 3 0.58 0.61
Equity ratio (incl. non-controlling interests) 42.4% 40.2%
Employees as of Sept. 30 1,022 1,167
</pre>
Taking the changes under IAS 19 into account, figures for 2012 adjusted
accordingly
(1) The adjustments made related, in particular, to non-realized currency
effects thus not recognized in income, mostly in valuing inter-company,
longer-term loans.
(2) Based on an unchanged number of 6,544,930 shares
(3) Net financial debt to equity (incl. non-controlling interests)
End of Corporate News
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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
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf, Hamburg, München,
Stuttgart
End of News DGAP News-Service
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240080 15.11.2013
DGAP-News: SKW Stahl-Metallurgie Holding AG: Operative EBITDA margin up to 9.1% in Q3
| Source: EQS Group AG