DGAP-News: SKW Stahl-Metallurgie Holding AG: Excellent start into business year 2010
(firmenpresse) - SKW Stahl-Metallurgie Holding AG / Quarter Results
12.05.2010 08:08
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Press Release
Excellent start into business year 2010
* Clear improvement in revenues and earnings thanks to recovery in steel
production and acquisition of Tecnosulfur
* Revenues Q1-2010: +68% to EUR 83.8 mill.; EBITDA: +226% to EUR 6.2
million
* Reaffirmed confidence for attaining targets in 2010 and 2011:
o 2010: EBITDA>EUR 20 million
o 2011: EBITDA margin (op.) = 9%
Unterneukirchen (Germany), May 12, 2010. The specialty chemicals group SKW
Metallurgie, listed in Germany's SDAX index, got off to a flying start in
2010. Consolidated revenues in the first quarter of 2010 lifted 68% to EUR
83.8 million. EBITDA grew at an above average 226% from EUR 1.9 million to
EUR 6.2 million, the consolidated EBITDA margin increased accordingly from
3.8% to 7.4%. This growth was due, in particular, to the significant
recovery in the steel sector, which is particularly important for the SKW
Metallurgie Group, and also to the contribution made by the Brazilian
subsidiary Tecnosulfur, acquired at the end of 2009. The Group's balance
sheet structure is also flourishing despite the increase in working
capital, which is due to the economic recovery. The equity ratio totals
45.1% and the gearing is low at 34%.
The positive growth also seems to be continuing in the second quarter. The
Executive Board is also confident that it will be able to reach its targets
for 2010 as a whole, which include substantial revenue growth and EBITDA of
at least EUR 20 million.
'We are very pleased with our start into 2010. The growth enjoyed by our
steel industry customers and at our newly acquired subsidiary Tecnosulfur
is even higher than our expectations, which were high to begin with. As a
result, we are now even more confident that we will be able to record
significantly profitable growth in the coming business year. Our strategy
of expanding in the world's high-growth regions in the BRIC nations is
paying off more and more,' commented SKW Metallurgie's CEO Ines Kolmsee.
Profits after taxes in Q1 up substantially to EUR 1.8 million
The SKW Metallurgie Group's gross margin increased from 21.5% in business
year 2009 to 27.4% in the first quarter of 2010. The key earnings
indicators below EBITDA also enjoyed significant improvements. EBIT climbed
quarter-on-quarter from EUR 0.4 million to EUR 3.5 million, pre-tax
earnings lifted from minus EUR 0.2 million back to a clearly positive EUR
3.2 million. After taxes, the SKW Metallurgie Group's earnings totaled EUR
1.8 million (Q1 2009: EUR 0.1 million). The parent company share of EUR 1.2
million (Q1 2009: EUR 0.1 million) led to earnings per share of EUR 0.18
(Q1 2009: EUR 0.02). Substantial improvements were realized in both core
segments. Cored Wire business benefited from the strong increase in steel
production and grew by 78% to revenues of EUR 36.8 million. EBITDA in this
segment increased from EUR 0.8 million to EUR 2.8 million, the EBITDA
margin also grew accordingly from 3.9% to 7.5%. In the Powder and Granules
segment, the company benefited from the economic recovery as well the
revenues and earnings contributed by the Brazilian subsidiary Tecnosulfur.
Segment revenues were up 71% to EUR 42.9 million, EBITDA even more than
quadrupled from EUR 1.1 million to EUR 4.5 million.
Balance sheet quality continues to be very solid
Despite having to further increase working capital as a result of the
strong increase in demand, the SKW Metallurgie Group continues to enjoy a
very solid balance sheet structure. Net financial debt increased by EUR 5.7
million compared to the end of 2009 to EUR 38.5 million, in view of a
comparable amount of increased equity, however, the gearing stabilized at
an unchanged low level of 0.34. The equity ratio fell slightly to 45.1%.
Investments in the Group's expansion in high-growth emerging nations will
also be consistently continued in 2010. A total of EUR 5.7 million was
spent in this regard in the quarter under review - this was mostly for the
plant in Bhutan which is under construction and which is expected to go
live in the second half of 2010.
Outlook: 2010 and 2011 to enjoy strong increases in revenues and earnings
Against the background of distinctly improving underlying conditions and
increasing earnings contributions from the new production locations
(completion of the new production plants in Russia and Bhutan still
expected for end-2010), the SKW Metallurgie Group is very optimistic about
this and the coming business year. The new subsidiary in Brazil
(Tecnosulfur) will be consolidated for a full year for the first time in
2010 and will make a corresponding contribution to revenues and earnings.
The company is expecting sales over EUR 30 million here and an EBITDA
margin significantly higher than the Group average. Unlike prior years, no
extraordinary effects on earnings are foreseeable either. The Executive
Board is continuing to forecast EBITDA of at least EUR 20 million in 2010
with revenues up substantially compared to 2009, and this is confirmed by
the excellent growth in the first quarter.
Full-year earnings contributions from the locations in Bhutan and Russia
entering production in 2010 are expected for the first time in the 2011
business year. The sales forecast for 2011 lies correspondingly higher at
EUR 360 million, whereby sales remain a slightly unsuitable indicator for
the assessment of the SKW Metallurgie Group's operating result, owing to
the dependence of selling prices on raw materials buying prices. More
informative is the (operational) EBITDA margin, which, as forecast for some
time now, is expected to reach at least 9% in 2011.
Further details on the company and its full report on the first quarter of
2010 can be found online at: www.skw-steel.com
Contact person:
SKW Stahl-Metallurgie Holding AG
Christian Schunck
Head of IR and Corporate Communication
Fabrikstrasse 6
84579 Unterneukirchen
Germany
Tel: +49 8634-62720-15
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 desulfurization, 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, 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, and have been included in the SDAX index from June 23, 2008.
DISCLAIMERThis 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)
Q1 - 2010 Q1 - 2009(1) Based on the number of shares on March 31 of the respective year
Consolidated revenues 83.8 50.0
- thereof Cored Wire 36.8 20.7
- thereof Powder and Granules 42.9 25.1
Gross margin 27.4% 27.8%
EBITDA 6.2 1.9
- thereof Cored Wire 2.8 0.8
- thereof Powder and Granules 4.5 1.1
EBITDA margin 7.4% 3.8%
EBIT 3.5 0.4
Pre-tax earnings 3.2 -0.2
Consolidated earnings for the year (incl. minority interests) 1.8 0.1
Consolidated earnings for the year (excl. minority interests) 1.2 0.1
Earnings per share in EUR 1 0.18 0.02
Gross cash flow 3.0 1.0
Mar. 31, 2010 Dec. 31, 2009
Total equity and liabilities 254.7 213.7
Equity (incl. minority interests) 114.9 109.0
Net financial debt 38.5 32.8
Gearing² 0.34 0.30
Equity ratio (incl. minority interests) 45.1% 47.0%
Number of employees (as of end of period) 724 715
(2) Net financial debt to equity
SKW Stahl-Metallurgie Holding AG
Christian Schunck
Head of IR and Corporate Communication
Fabrikstrasse 6
84579 Unterneukirchen
Germany
Tel: +49 8634-62720-15
Fax: +49 8634-62720-16
E-mail: schunck(at)skw-steel.com
Internet: www.skw-steel.com
12.05.2010 08:08 Ad hoc announcement, Financial News and Media Release distributed by DGAP. Medienarchiv atwww.dgap-medientreff.deandwww.dgap.de---------------------------------------------------------------------------
Language: English
Company: SKW Stahl-Metallurgie Holding AG
Fabrikstrasse 6
84579 Unterneukirchen
Deutschland
Phone: +49 (0)8634 61 511
Fax: +49 (0)8634 61 513
E-mail: info(at)skw-steel.com
Internet: www.skw-steel.com
ISIN: DE000SKWM013
WKN: SKWM01
Indices: SDAX
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, München, Düsseldorf, Stuttgart, Hamburg
End of News DGAP News-Service
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