DGAP-News: SKW Stahl-Metallurgie Holding AG: Attractive dividend of EUR 0.50 per share
(firmenpresse) - DGAP-News: SKW Stahl-Metallurgie Holding AG / Key word(s): Final
Results
SKW Stahl-Metallurgie Holding AG: Attractive dividend of EUR 0.50 per
share
22.03.2013 / 07:35
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SKW Metallurgie: Attractive dividend of EUR 0.50 per share
* Downturn in steel production leads to decrease in consolidated revenues
by around 5%
* Earnings additionally characterized by extraordinary factors - EBITDA at
EUR 20.8 million
* Positive free cash flow and decrease of net financial debt
* Continued confidence for 2013 despite economic uncertainties
Unterneukirchen (Germany), March 22, 2013. The global specialty chemicals
group SKW Metallurgie recorded solid results in fiscal year 2012 despite
difficult underlying macroeconomic conditions and start-up costs for its
new plants. Steel production (outside China) is by far the most important
indicator for the SKW Metallurgie Group's business development, and here in
particular the quantities produced in the EU, the USA and Brazil. All three
regions recorded what was, in some cases, substantially negative
development in the second half of the year; in Europe in particular this
was the case for the entire year.
As a result, the SKW Metallurgie Group was not quite able to reach the
previous year's figures with consolidated revenues of EUR 404.6 million in
2012 (previous year: EUR 428.9 million). This also impacted EBITDA, which
totaled EUR 20.8 million (2011: EUR 31.7 million; adjusted for non-cash
one-off factors: EUR 22.9 million).
The Executive and Supervisory Boards intend to propose to the Annual
General Meeting on June 11, 2013 the disbursement of a dividend in the
amount of EUR 0.50 per dividend-entitled share, unchanged y-on-y in
absolute terms.
Irrespective of the continued high level of economic uncertainty, the
Executive Board is fundamentally optimistic, assuming a stable economic
development, and believes that revenues and earnings will both increase,
also with the new plants contributing to earnings.
'The steel industry brought us not only happiness in key regions of ours in
2012. Given this background, we have still recorded sound operating growth,
and together with our fundamental optimism for 2013 this means that we can
propose to the Annual General Meeting an attractive dividend of EUR 0.50
per share,' Ines Kolmsee, the SKW Metallurgie Group's CEO, commented.
Gross margin up to 29.2% via orientation to high-margin products
The orientation to high-margin products and the group's high efficiency
regarding cost of materials are reflected in a substantial increase in the
gross margin from 27.6% in the previous year to 29.2%. However, EBITDA,
EBIT and earnings before and after taxes were characterized by the quoted
positive one-off factors in 2011 in a year-on-year comparison. After
adjustment for these factors, the earnings were, in some cases, slightly
lower than, and in some cases slightly higher (EBIT) than the previous
year's figures. The financial result deteriorated as a result of the higher
financial debt during the year and the one-off costs in connection with the
group's successful refinancing in the first quarter of 2012.
Increase in net cash flow reflects improvement in working capital
The SKW Metallurgie Group's equity ratio has improved slightly to 40.8%
(December 31, 2011: 40.7%), net financial debt fell substantially in the
fourth quarter by around EUR 13 million to EUR 73.9 million (September 30,
2012: EUR 88.6 million; December 31, 2011: EUR 77.9 million), and gearing
remained stable at 0.61 (December 31, 2011: 0.61); it thus continues to
have a sound balance sheet structure. Borrowing was secured over the long
term at the start of 2012 at favorable conditions. The continued focus on
reducing working capital paid off in fiscal year 2012. Thanks to resulting
inflows of funds in the amount of EUR 21.7 million, the cash flow from
operating activities (net cash flow) improved very substantially from EUR
6.1 million to EUR 30.4 million.
Outlook 2013 Positive free cash flow in focus
At the start of fiscal year 2013, what are mostly still unresolved problems
in the sovereign debt crisis in key European countries mean that it is
difficult to forecast business. This relates, in particular, to the Swedish
group company, whose products are primarily sold on the European market for
logistical reasons. In Brazil, irrespective of macroeconomic developments,
competition has intensified for key sales markets for the SKW Metallurgie
Group. In contrast, positive impetus is being forecast for the North
American steel market. On the whole, the Executive Board is thus optimistic
that the group companies' sales and revenues will grow in line with the
growth in the quantities of steel produced in the geographic markets that
the group serves, and increase further from the penetration of new
geographic markets in the CIS countries and in India, as well as from new
product developments. The new plant in Bhutan will mostly supply within the
group and, as planned, it will thus generate practically no additional
revenues with third parties.
Experts continue to expect above-average growth in emerging nations, and a
continued re-industrialization of North America. As a result, the Executive
Board believes that sales in these countries will make a significant
contribution to consolidated earnings and, in particular, to increasing
EBITDA. Additional EBITDA impetus will also come from the new plants, which
have been characterized by start-up costs until into 2012. In terms of the
balance sheet, in 2013 as a result of the preliminary conclusion of the
group's expansion and corresponding lower capital expenditure, the
Executive Board is forecasting a positive free cash flow, which can be
employed for a further reduction in net financial debt as well as for
attractive dividend proposals.
The report on fiscal year 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 Corporate Communications
Rathausplatz 11
84579 Unterneukirchen
Germany
Telephone IR/Press: +49 89 5998923-22
Fax: +49 89 5998923-29
E-mail: schunck(at)skw-steel.com
Internet: www.skw-steel.com
About SKW Stahl-Metallurgie Holding AG
The SKW Metallurgie Group 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/M.
(Germany) Stock Exchange's Prime Standard since December 1, 2006 with ISIN
DE000SKWM013 (since August 15, 2011: new ISINDE000SKWM021), 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
for fiscal year 2012 (in EUR million)
2012 2011(1) Earnings in 2011 included a bargain purchase of EUR 2.6 million and the
Consolidated revenues 404.6 428.9
- thereof Cored Wire 183.7 202.1
- thereof Powder and Granules 192.7 197.3
Gross margin 29.2% 27.6%
EBITDA adjusted 1 20.4 22.9
EBITDA 20.8 31.7
- thereof Cored Wire 6.6 7.6
- thereof Powder and Granules 13.5 26.8
EBITDA margin adjusted 1 5.0% 5.3%
EBIT adjusted 1 9.9 9.6
EBIT 10.3 18.4
Earnings before taxes 6.1 16.2
Consolidated net income for the year (Shareholders SKW Metallurgie) 4.3
12.2
Earnings per share in EUR 2 0.65 1.86
Dividend in EUR 3 0.50 0.50
Cash flow from operating activities 30.4 6.1
Dec. 31, 2012 Dec. 31, 2011
Total assets&liabilities 299.1 315.7
Equity (incl. non-controlling interests) 121.9 128.4
Net financial debt 73.9 77.9
Gearing 4 0.61 0.61
Equity ratio (incl. non-controlling interests) 40.8% 40.7%
Employees 1,011 1,025
reversal of a provision of EUR 6.2 million; in 2012, the corresponding
figure was EUR 0.4 million
(2) Based on 6,544,930 shares
(3) For 2012: Proposal to the Annual General Meeting on June 11, 2013
(4) 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(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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204856 22.03.2013
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