DGAP-News: SKW Stahl-Metallurgie Holding AG / Key word(s): Half Year
Results
SKW Stahl-Metallurgie Holding AG: SKW Metallurgie Continues Growth
Path
16.08.2011 / 07:53
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Press Release
SKW Metallurgie Continues Growth Path
* Revenue growth by 14% to EUR 215.6 mill in first half year
* EBITDA at EUR 19.7 mill improved by 22% despite extraordinary effects
* Investments in global expansion reach peak in first half year
* Confirmation of Guidance for 2011 and 2012
Unterneukirchen (Germany), August 16, 2011. The SDAX-quoted specialty
chemicals Group SKW Metallurgie is set on the forecast growth path after
the first half year of 2011. Driven by a positive economic environment,
especially in the steel industry (which is crucial for the Group), Group
revenues after six months at EUR 215.6 mill were significantly (+14%) above
the comparable figure of the previous year at EUR 188.8 mill EBITDA
(Earnings before interest, taxes, depreciation, and amortization) were
improved by 22% to EUR 19.7 mill (H1-2010: EUR 16.1 mill). In that context,
several extraordinary impacts should be taken into consideration when
comparing to the previous year. For instance, the acquisition of a calcium
carbide plant in Sweden led on the one hand to a positive valuation effect
of EUR 2.7 mill, which on the other hand were contrasted by initial
expenses for that plant as well as for the plants in Bhutan and Russia
(which went live in the middle of the year). Moreover, the results of the
previous year entail a positive net currency gain of EUR 2.2 mill, whereas
in H1-2011 a negative currency effect of EUR 0.5 mill was recorded. Given
the current uncertainties on the capital markets and its currently
unpredictable effects onto the real economy, the SKW Metallurgie Group
reiterates its forecast of being able to realize a significant increase in
revenues and earnings in business years 2011 and 2012. However, the growth
dynamics of the first half year of 2011 might slow down during the further
course of the year.
'Despite initial expenses for our growth projects in Bhutan and Russia, we
could significantly increase earnings during the first half of 2011. SKW
Metallurgie is currently faced with significant opportunities on several
continents, in order to secure our continued profitable growth. We are
convinced that the required investments will amortize already as of 2012,'
says the CEO of the SKW Metallurgie Group, Ines Kolmsee.
All result figures improved despite increase in costs
The dimension of the already realized expansion projects is shown clearly
in the significant increase of the staff level by around a fourth to 972
since year-end 2010. Despite the correspondingly increased personnel costs,
as well as higher material costs (as a consequence of higher raw material
prices), all result figures were improved. For instance, the EBITDA margin
increased from 8.5% to 9.1%. For EBIT, an increase from EUR 10.3 mill to
EUR 13.0 mill was recorded. After taxes, the Group realized an earnings
growth by 51% to EUR 7.4 mill, resulting in earnings per share of EUR 1.13
as compared to EUR 0.75 in the comparable period of the previous year. Both
segments contributed to the positive development. In 'Cored Wire,' revenues
increased by 15% to EUR 101.2 mill, EBITDA - due to initial expenses in
Bhutan and Russia -by 3% to EUR 6.8 mill. In the segment 'Powder and
Granules,' revenues were increased from EUR 90.3 mill to EUR 98.5 mill;
EBITDA increased from EUR 11.0 mill to EUR 14.6 mill.
High investments to secure long-term profitable growth
In order to secure future growth potential, SKW Metallurgie continues to
strongly invest in the global expansion of the Group. Pertaining measures
significantly coin balance sheet and cash flow in 2011. Due to the
improvements in the operative business, working capital increased by EUR
12.0 mill. Investments in the reporting period increased from EUR 12.1 mill
to EUR 18.7 mill. Pertaining finance was realized, as announced, by taking
loans, through which net financial debt increased significantly from EUR
47.3 mill to EUR 71.5 mill. Due to the projects scheduled for the second
half of the year, that figure should increase further by the end of 2011.
The equity ratio decreased to still solid 40.0% (Dec. 31, 2010: 44.3%).
Gross Cash Flow in the first half of 2011 was significantly improved by 42%
to EUR 10.4 mill compared to the previous year due to the increase in
earnings.
Guidance confirmed despite increasing economic uncertainties
The generally positive outlook regarding the growth potential of the SKW
Metallurgie Group has remained unchanged from a current perspective.
However, the current turbulences on the capital markets result in
increasing uncertainties regarding its potential, yet currently
unpredictable effects on the real economy. In this context, the Executive
Board reiterates its forecast for business years 2011 and 2012 of being
able to realize in both years significant growth in revenues and earnings.
That guidance is based on the assumption of a continued positive
development of the global economy and especially the steel production which
is of particular relevance for the SKW Metallurgie Group. Driven by organic
and external growth, Group revenues in 2011 should be above current record
revenues of EUR 380.8 mill from business year 2010.
For EBITDA as well, the current forecast for 2011 of EUR 32 mill is
maintained. It should be taken into consideration in that context that the
new plants in Bhutan (calcium silicon production) and Russia (production of
cored wire) went live only in the middle of the year and will contribute
only limitedly to revenues and earnings in the second half of 2011. That
same applies to the calcium carbide plant in Sweden that will yield
operative losses for this year due to required restructuring. In the
year-end quarter, the start-up of the new production facility in Brazil is
scheduled. If the current still positive outlook for the economy in general
(and steel in particular) for 2012 remain in force, the SKW Metallurgie
Group forecasts also in the coming business year - reinforced by the
contributions of the new plants - a significant growth in revenues and
earnings.
The interim report on H1 2011 as well as further information on the Group
may be found at the Internet: www.skw-steel.com.
Contact
SKW Stahl-Metallurgie Holding AG
Christian Schunck
Head of IR and Corporate Communications
Prinzregentenstrasse 68
81675 Muenchen
Germany
Direct line 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, the Peoples' Republic of China (2) and India (2 via
joint ventures). In addition, a new production facility in Brazil is under
construction.
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.
Key Figures SKW Stahl-Metallurgie Holding AG
(in EUR mill)
|[![CDATA[|[pre|]]]|]
H1-2011 H1-2010 Change
Revenues 215.6 188.8 +14%
- thereof Cored Wire 101.2 88.0 +15%
- thereof Powder and Granules 98.5 90.3 +9%
Gross margin 28.4% 27.5% -
EBITDA 19.7 16.1 +22%
- thereof Cored Wire 6.8 6.6 +3%
- thereof Powder and Granules 14.6 11.0 +45%
EBITDA margin 9.2% 8.5% -
EBIT 13.0 10.3 +26%
EBT 11.9 8.9 +34%
Cons. net result (incl. non-controlling interests) 8.0 5.8 +38%
Cons. net result (excl. non-controlling interests) 7.4 4.9 +51%
EPS in EUR 1 1.13 0.75 +51%
Gross Cash Flow 10.4 7.3 +42%
June 30, 2011 Dec. 31, 2010
Total assets/Total e&l 305.4 275.8
Equity (incl. non-controlling interests) 122.3 122.3
Net financial debt 71.5 47.3
Gearing 2 0.58 0.39
Equity ratio (incl. non-controlling interests) 40.0% 44.3%
Employees (balance sheet day) 972 790
|[![CDATA[|[/pre|]]]|]
1) Relates to number of shares of 6,544,930
2) Net financial debt to equity (incl. non-controlling interests)
End of Corporate News
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16.08.2011 Dissemination of a Corporate News, transmitted by DGAP - a
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Language: English
Company: SKW Stahl-Metallurgie Holding AG
Fabrikstrasse 6
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: DE000SKWM013
WKN: SKWM01
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf, Hamburg, München,
Stuttgart
End of News DGAP News-Service
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135782 16.08.2011
DGAP-News: SKW Stahl-Metallurgie Holding AG: SKW Metallurgie Continues Growth Path
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