DGAP-News: SKW Stahl-Metallurgie Holding AG / Key word(s): Quarter
Results
SKW Stahl-Metallurgie Holding AG: SKW Metallurgie's operations are on
track
15.11.2012 / 06:44
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SKW Metallurgie's operations are on track
* Q3: New plant in Bhutan records positive EBITDA; consolidated EBITDA up
year-on-year
* Nine-month period: Revenues and EBITDA only slightly lower than previous
year despite start-up costs for new plants and increasingly difficult
underlying conditions
* Positive outlook for 2013 despite economic uncertainties
Unterneukirchen (Germany), November 15, 2012. The specialty chemicals group
SKW Metallurgie continues to be right on track after the first nine months
of 2012 despite the deteriorating underlying conditions. Consolidated
revenues totaled EUR 315.4 million, slightly lower than the figure from the
same period of the previous year of EUR 324.7 million; however, this was to
be expected as a result of the economic slowdown in the third quarter.
Despite this sluggish revenue growth, EBITDA was up from EUR 6.1 million to
EUR 6.3 million in the third quarter thanks to the optimized use of
materials, and currency translation effects. After three quarters
(nine-month period), the SKW Metallurgie Group recorded EBITDA of EUR 19.8
million. The comparable figure from the previous year totaled EUR 23.2
million. Given this background, the SKW Metallurgie Group forecasts for
2012 as a whole an EBITDA figure comparable to the previous year's level in
operational terms; however, it will, as announced, be lower than the figure
reported for 2011. Substantial improvements are expected in 2013 from the
new plants' contributions to earnings if the global economy remains at
least stable.
'In view of the charges resulting from our new plants during the first half
of the year, and the slowdown in the global economy, we can be very happy
with the first three quarters of 2012. We continue to believe that in 2013
we will reach significantly improved EBITDA based on the contributions from
the new plants,' commented the SKW Metallurgie Group's CEO Ines Kolmsee.
Highly efficient use of materials is reflected in the increase in the gross
margin to 28.4%
The company's high level of cost efficiency can be seen in the improved
gross margin (up from 27.5% to 28.4%) compared to the same period of the
previous year. EBIT and EBT were also higher than the previous year's
figures in the third quarter; however, in the entire nine-month period the
start-up costs for the new plants in the first half of the year meant that
the previous year's figures were not fully met.
Improvement in working capital leads to substantial increase in cash flow
from operating activities
The SKW Metallurgie Group has an equity ratio of 39.1% (December 31, 2011:
40.7%), net financial debt of EUR 86.6 million (December 31, 2011: EUR 77.9
million) and gearing of 0.69 (December 31, 2011: 0.61) and thus continues
to have a very solid balance sheet structure. Borrowing was secured over
the long term at the start of this year at favorable conditions. The cash
flow from operating activities improved significantly by more than EUR 4
million during the 2012 nine-month period (EUR 13.8 million) compared to
the 2011 nine-month period (EUR 9.7 million).
Positive EBITDA contributions from Bhutan since Q3 2012
Growth in steel production correlates closely with global economic growth,
and although these are viewed with an increasing degree of skepticism and
insecurity, the SKW Metallurgie Group's Executive Board has confirmed its
forecasts on a positive impetus from the new plants. Operating EBITDA in
the current year of 2012 is to reach levels comparable to the 2011 figures;
however, as announced, the EBITDA disclosed will fall below the figure
reported for the previous year of EUR 31.7 million. In view of the full
contributions to earnings expected in the coming year from the expansions
to the plants in Brazil and the USA, the plant in Sweden which is being
modernized, and the new plants in Russia and Bhutan that were completed in
2012, a significant increase in EBITDA is forecast for 2013. Calcium
silicon has already been produced successfully in Bhutan since the third
quarter of 2012, with the result that the Bhutanese group company made a
positive contribution to consolidated EBITDA in the third quarter of 2012.
However, the positive outlook for 2013 can only be realistically forecast
assuming that the global economy enjoys at least stable growth. The
forecast positive free cash flow will lead to a reduction in net financial
debt, and also to proposing the disbursement of attractive dividends to
shareholders.
The report on the first three quarters of 2012 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 Group Communications
Rathausplatz 11
84579 Unterneukirchen
Germany
Telephone IR/Press: +49 89 5998923-22
Telefax IR/Press: +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, Russia, the Peoples' Republic of China (2) and India
(2 via joint venture).
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
after the first three quarters of 2012 (in EUR million)
<pre>
9M-2012 9M-2011 Q3-2012 Q3-2011
Consolidated revenues 315.4 324.7 95.4 109.1
- thereof Cored Wire 143.9 153.1 41.9 51.9
- thereof Powder and Granules 149.9 148.4 46.5 49.9
Gross margin 28.4% 27.5% 28.8% 25.8%
EBITDA adjusted 1 19.8 23.2 6.3 6.2
EBITDA 19.8 25.8 6.3 6.1
- thereof Cored Wire 6.1 7.8
- thereof Powder and Granules 13.4 19.3
EBITDA margin adjusted 1 6.3% 7.1% 6.6% 5.7%
EBIT adjusted 1 12.4 13.4 3.8 3.1
EBIT 12.4 16.0 3.8 3.0
Earnings before taxes 9.4 14.2 2.8 2.2
Consolidated net income for the period 5.0 9.0 1.3 0.9
Earnings per share in EUR 2 0.87 1.22 0.21 0.09
Gross cash flow 8.5 13.0
Cash flow from operating activities 13.8 9.7
Sept. 30, 2012 Dec. 31, 2011
Total assets 321.1 315.7
Equity (incl. non-controlling interests) 125.4 128.4
Net financial debt 86.6 77.9
Gearing ³ 0.69 0.61
Equity ratio (incl. non-controlling interests) 39.1% 40.7%
Employees 1,167 1,025
</pre>
(1) Earnings in 2011 included a bargain purchase of EUR 2.6 million
(thereof: EUR -0.1 million in Q3 2011).
(2) Based on 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
Indices: SDAX
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf, Hamburg, München,
Stuttgart
End of News DGAP News-Service
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193315 15.11.2012
DGAP-News: SKW Stahl-Metallurgie Holding AG: SKW Metallurgie's operations are on track
| Source: EQS Group AG