DGAP-News: SKW Stahl-Metallurgie Holding AG: SKW Metallurgie records continued revenue growth
(firmenpresse) - DGAP-News: SKW Stahl-Metallurgie Holding AG / Key word(s): Quarter
Results
SKW Stahl-Metallurgie Holding AG: SKW Metallurgie records continued
revenue growth
15.05.2012 / 06:30
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SKW Metallurgie records continued revenue growth
- Group revenues in first quarter 2012 increased by 12 % to EUR 113.2
million
- Operating EBIT at EUR 3,5 million almost at level of previous year (EUR
4.3 million)
- Improved cash flow from operating activity
- Guidance adjusted for 2012, and reiterated for 2013
Unterneukirchen (Germany), May 15, 2012. The SDAX-listed specialty
chemicals group SKW Metallurgie recorded another improvement in revenues in
Q1 2012. As a result of the group's global expansion and a slight increase
in demand from the steel industry, consolidated revenues were up 12% to EUR
113.2 million (Q1 2011: EUR 101.0 million). In contrast, in the first half
of the year EBITDA will still be substantially depressed by the start-up
costs for the new plants, in particular in Bhutan. After adjustment for the
non-cash one-off effect from the acquisition of a plant in Sweden, EBITDA
in Q1 2011 totaled EUR 7.3 million, and in Q1 2012 it totaled EUR 6.0
million due to the start-up costs for the new plants. The new plants are
only expected to record notable revenues and make a positive contribution
to EBITDA in the second half of the year. However, from today's
perspective, 2012 as a whole will continue to be characterized by start-up
costs for the new plants as well as macroeconomic uncertainties due to the
sovereign debt crisis, in particular in Europe. As a result, the SKW
Metallurgie Group's Executive Board is forecasting EBITDA for 2012 that
correspond to the previous year's level in operating terms, but which are
lower than the reported figure for 2011.
'In view of the economic uncertainties, we are very pleased with our
revenue growth in Q1. Our expansion projects still include start-up costs
at the start of the year. This is normal for new plants. If we succeed in
turning around in the second half of the year, we are confident that, given
a further stabilization in the global economy in 2012, we will be able to
match or even exceed the previous year's figures for revenues and operating
EBITDA,' commented the SKW Metallurgie Group's CEO Ines Kolmsee.
Expansion projects continue to impact earnings development
Expansion projects again had a strong impact on earnings in Q1 2012;
start-up costs for these projects meant that the expense items showed a
stronger percentage increase than revenues. In addition, figures from the
same period of 2011 include a positive one-off effect from the first-time
consolidation of the plant in Sweden (bargain purchase). Despite the lower
amortization of intangible assets, EBIT adjusted for the bargain purchase
fell from EUR 4.3 million to EUR 3.5 million. The high investments and
one-off effects from restructuring borrowing were also reflected in
financing costs. Earnings before taxes fell correspondingly. In addition,
imputed tax expenses were high due to extraordinary tax factors, with the
result that the earnings per share totaled just EUR 0.13 (Q1 2011: EUR
0.65).
End-to-end refinancing secures long-term growth perspectives
The Group optimized the structure and interest levels for its borrowing in
the first quarter withextensive refinancing of the SKW Metallurgie Group
by the successful placement of a promissory note loan and by signing a new
master credit agreement. On the whole, the balance sheet continues to be
very solid as of March 31, 2012, with an equity ratio of 39.5% (December
31, 2011: 40.7%). Net cash outflow for investments fell, as announced,
compared to the same period of 2011 from EUR 12.5 million to EUR 4.6
million, and will remain substantially lower than the 2011 figures over the
whole of 2012. As investments were primarily financed by borrowing in view
of the gross cash flow of EUR 1.2 million (Q1 2011: EUR 3.3 million), net
financial debt has increased from EUR 77.9 million at the end of 2011 to
EUR 82.2 million on March 31, 2012.
Forecasts for 2012 and 2013 characterized by economic uncertainties
As a result of the general economic situation - in particular the sovereign
debt crisis - and the start-up costs for the new plants, the SKW
Metallurgie Group's Executive Board believes that the good operating
results of 2011 will be reached again in current fiscal year 2012, however
that the recorded EBITDA will not fully reach the previous year's figure of
EUR 31.7 million, which was coined by one-offs. The Group continues to
expect that the new plants (extensions to plants in Brazil and the USA,
acquisition of a plant in Sweden, new plants constructed in Russian and
Bhutan) will make a full contribution to earnings in 2013. Given this
background, for 2013 the Executive Board is aiming, as already announced,
for a significant improvement in key financial indicators and, in
particular, a positive free cash flow - assuming a further recovery in the
global economy.
The report on Q1 2012 and further information on the Group can be found
online at: www.skw-steel.com.
KPIs for SKW Stahl-Metallurgie Holding AG for Q1 (in EUR million)
Q1 2012 Q1 2011
Consolidated revenues 113.2 101.0
- thereof Cored Wire 51.9 47.8
- thereof Powder and Granules 58.6 45.6
Gross margin 26.7% 28.6%
EBITDA adjusted 1 6.0 7.3
EBITDA 6.0 10.0
- thereof Cored Wire 1.4 3.3
- thereof Powder and Granules1 5.6 8.0
EBITDA adjusted 1 5.3% 7.2%
EBIT adjusted 1 3.5 4.3
EBIT 3.5 7.0
Earnings before taxes 2.0 6.5
Consolidated earnings (excl. non-controlling interests) 0.8 4.3
Earnings per share in EUR 2 0.13 0.65
Gross cash flow 1.2 3.3
Cash flow from operating activity 0.6 -1.1
3/31/2012 12/31/2011-1- Earnings in the Powder and Granules segment included bargain purchase
Total assets 320.8 315.7
Equity (incl. non-controlling interests) 126.6 128.4
Net financial debt 82.2 77.9
Gearing 0.65 0.61
Equity ratio (incl. non-controlling interests) 3 39.5% 40.7%
Employees 1,022 1,025
income of EUR 2.7 million in Q1 2011
-2- Based on 6,544,930 shares
-3- Net financial debt to equity (incl. non-controlling interests)
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 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
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.
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(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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169860 15.05.2012
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