DGAP-News: SKW Stahl-Metallurgie Holding AG: SKW Metallurgie continues profitable on-track growth
(firmenpresse) - DGAP-News: SKW Stahl-Metallurgie Holding AG / Key word(s): Final
Results
SKW Stahl-Metallurgie Holding AG: SKW Metallurgie continues profitable
on-track growth
23.03.2012 / 06:22
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SKW Metallurgie continues profitable on-track growth
- Record revenues of EUR 428.9 million (up 12.6%) in 2011
- EBITDA at EUR 31.7 million, up 10% year-on-year
- Constant dividend of EUR 0.50 per share
- Further growth potential for 2012 and 2013
Unterneukirchen (Germany), March 23, 2012. The SDAX-listed specialty
chemicals group SKW Metallurgie was able to record new records for revenues
and earnings in fiscal year 2011. Consolidated revenues lifted by 12.6% to
EUR 428.9 million (2010: EUR 380.8 million). EBITDA was up from EUR 28.8
million to EUR 31.7 million. Given this background, the Executive and
Supervisory Boards will make a proposal to disburse an unchanged dividend
of EUR 0.50 per share to the General Meeting on June 14, 2012. Assuming
that the positive growth in the global economy will stabilize, the
Executive Board is forecasting the profitable growth to continue in 2012
and 2013.
'2011 was a very exciting year for us - characterized by continued
profitable growth and dynamic global expansion. This will result in major
opportunities and potential for us in the coming years, however full
realization of these has been partially delayed. We are forecasting further
revenue and earnings growth in 2012 and 2013,' commented the SKW
Metallurgie Group's CEO Ines Kolmsee.
Earnings growth characterized by a large number of one-off factors
Earnings in the year under review were characterized by a large number of
non-operating extraordinary factors in the second half of the year. The
reversal of the majority of a provision that had been formed for a possible
antitrust penalty (EUR +6.2 million) improved earnings. This was based on a
positive court ruling which changed the estimate of risk with regard to
possible outflows of funds in this connection. In contrast, the start-up
costs for the new production facilities in Bhutan and Russia had a negative
impact (EUR -2.4 million). In addition, a case of fraud for raw materials
purchased in China (EUR -1.9 million), a back payment to be made to a
former supplier for 2009 as a result of a court decision (EUR -1.5 million)
and a receivable that had to be deleted in connection with a bankruptcy
from the year of 2007 (EUR -0.3 million) led to extraordinary expenses.
Changes in exchange rates also led to a significant net reduction of EUR
4.9 million compared to 2010 (2010: EUR +2.3 million; 2011: EUR -2.6
million).
Development below EBITDA was substantially positive. For example, earnings
after taxes and non-controlling interests increased very significantly by
more than 60% to EUR 12.2 million (2010: EUR 7.5 million), and earnings per
share thus lifted from EUR 1.15 to EUR 1.86.
Balance sheet structure characterized by strong expansion, successful
refinancing
The balance sheet and cash flow statement were characterized by the Group's
strong growth and dynamic expansion in 2011. The Group invested a total of
EUR 33.9 million (2010: EUR 24.7 million) in its future growth. The
requisite financing in this regard primarily stemmed from borrowings being
taken out. As a result, net financial debt increased from EUR 47.3 million
to EUR 77.9 million. The SKW Metallurgie Group has an equity ratio of 40.6%
(December 31, 2010: 44.3%), and thus continues to have a very solid balance
sheet structure.
Thanks to the excellent earnings, the gross cash flow increased from EUR
14.9 million to EUR 16.5 million. At the start of 2012, the company also
succeeded in refinancing its borrowing at favorable conditions with the
issue of a promissory note bond for EUR 45 million with terms of up to
seven years, and by signing a new three-year master credit agreement of a
comparable size. As a result, the SKW Metallurgie Group is also financially
well equipped for future profitable growth.
Further growth potential for 2012 and 2013
The SKW Metallurgie Group is taking a positive view of fiscal year 2012.
Despite the continued political and economic insecurities, experts'
forecasts for the underlying conditions for the global economy are
cautiously optimistic. Growth in the steel industry - which is by far the
most important customer industry for the Group - is forecast to exhibit
different regional patterns. For example, demand in North and South America
is expected to continue to enjoy positive growth, whereas steel production
in Europe is expected to stagnate or even fall slightly. In addition,
fiscal year 2012 will also be characterized by strategic high-growth
projects. The new plants in Sweden, Bhutan and Russia and the expansion of
the facilities in Brazil and the USA are expected to make a full positive
contribution to earnings from 2013 as a result of the fact that their
start-up phases have, in some cases, been longer than initially forecast.
In spite of this, however, the Executive Board believes that there will be
a renewed increase in EBITDA in 2012, as well as a further improvement in
consolidated revenues. The Group is aiming for a renewed substantial
increase in EBITDA for fiscal year 2013 - assuming a further recovery in
the global economy.
The 2011 annual report and further information on the company 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
Fax: +49 8634 62720-16
E-mail: schunck(at)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 ventures).
Shares of SKW Stahl-Metallurgie Holding AG have been listed in Frankfurt
(Germany) 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
(in EUR million
2011 2010 Change
Consolidated revenues 428.9 380.8 +12.6%Dec. 31, 2011 Dec. 31, 2010
- thereof Cored Wire 202.1 183.0 +10.4%
- thereof Powder and Granules 197.3 175.1 +12.7%
Gross margin 27.6% 27.2% -
EBITDA 31.7 28.8 +10.0%
- thereof Cored Wire 1 7.6 11.9 -36.1%
- thereof Powder and Granules1 26.8 21.7 +23.5%
EBITDA margin 7.4% 7.6% -
EBIT 18.4 17.3 +6.1%
Earnings before taxes 16.2 15.0 +8.1%
Consolidated earnings (incl. non-controlling 11.8 9.1 +29.7%
interests)
Consolidated earnings (excl. non-controlling 12.2 7.5 +62.7%
interests)
Earnings per share in EUR 2 1.86 1.15 +62.7%
Dividend per share in EUR 0.50 3 0.50 +-0%
Gross cash flow 16.5 14.9 +10.6%
Total assets 315.7 275.8-1- The bulk of currency translation effects and the start-up costs in
Equity (incl. non-controlling interests) 128.4 122.3
Net financial debt 77.9 47.3
Gearing4 0.61 0.39
Equity ratio (incl. non-controlling interests) 40.6% 44.3%
Number of employees (balance sheet date) 1025 790
Bhutan and Russia were booked in the Cored Wire segment, and the
reversal of the provision in the Powder and Granules segment.
-2- Based on 6,544,930 shares
-3- Announced dividend proposal to the general meeting on June 14, 2012
-4- Net financial debt to equity (incl. non-controlling interests)
End of Corporate News
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23.03.2012 Dissemination of a Corporate News, transmitted by DGAP - a
company of EquityStory AG.
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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(at)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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161966 23.03.2012
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