DGAP-News: SKW Stahl-Metallurgie Holding AG: Efficiency Program Substantiated
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SKW Stahl-Metallurgie Holding AG: Efficiency Program Substantiated
25.09.2013 / 21:37
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Efficiency Program Substantiated
* Expected earnings improvements of about 8 million EUR per year
* Multitude of measures primarily concern optimization of organization,
production, sales, and procurement
* Goal: Return to quo-ante earnings levels, Significantly increase free
cash flow, Sustainably reduce debt
Unterneukirchen (Germany), Sept. 25, 2013. The Executive Board of SKW
Stahl-Metallurgie Holding AG today presented to the Supervisory Board of
the company the details of the already announced comprehensive efficiency
program. The majority of the expected earnings improvements of about 8
million EUR per year (EBITDA) is to be realized as of business year 2014.
The one-off costs expected in this context should be below 1 million EUR.
Thereby, the company shows a consequent reaction to the challenging
macroeconomic environment, as announced in the context of the release of
the H1 figures. The measures, which have in part already been initiated,
are expected to lead to sales increases as well as cost reductions. The
program encompasses various individual measures, covering all segments and
locations.
'With the efficiency program, we consequently react to the difficult
environment in the steel industry. We thereby manage to realize earnings
potentials of about 8 million EUR per year, at relatively low one-off
costs. By doing so, we intend to return to the path of our quo-ante
profitability, and through significantly positive free cash flows also
significantly improve our balance sheet quality,' commented Ines Kolmsee,
CEO of SKW Metallurgie, the program.
Goal: Return to quo-ante earnings levels, Significantly increase free cash
flow, Sustainably reduce debt
By implementing the efficiency program until the end of 2014, the Executive
Board intends to return of the quo-ante earnings levels of 2010 and 2011
with EBITDA margins above 7%, subject to a stable economic development.
This should also allow for the generation of significantly increasing,
positive free cash flows. After the global expansion of the SKW Metallurgie
Group that had been pushed in recent years was successfully concluded at
the end of 2012, the increased EBITDA should result in significantly
higher, positive free cash flows, whereby the net financial debt of the
Group should be reduced sustainably.
For 2013, the company had announced in mid-August that sales and EBITDA
levels of the previous year might not be reached again due to the slow pace
of steel production. Operative EBITDA of H2 should be above that of H1.
Further information on the Group may be found on the Internet:
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 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: DE000SKWM021).
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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25.09.2013 Dissemination of a Corporate News, transmitted by DGAP - a
company of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de
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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
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf, Hamburg, München,
Stuttgart
End of News DGAP News-Service
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231989 25.09.2013
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Datum: 25.09.2013 - 21:37 Uhr
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