DGAP-News: SKW Stahl-Metallurgie Holding AG: Profitability improved despite challenging environment
(firmenpresse) - DGAP-News: SKW Stahl-Metallurgie Holding AG / Key word(s): Preliminary
Results/Change of Personnel
SKW Stahl-Metallurgie Holding AG: Profitability improved despite
challenging environment
30.10.2013 / 18:02
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Profitability improved despite challenging environment
* Adjusted operative EBITDA increased despite decrease in revenues -
operative EBITDA margin improved from 4.3% to 9.1% in Q3
* Net financial debt decreased further than scheduled thanks to
significantly positive free cash flow development
* Change in CFO position
Unterneukirchen (Germany), October 30, 2013. Global specialty chemical
group SKW Metallurgie significantly improved its profitability in Q3
despite a challenging environment, based on preliminary figures. Faced with
a decreasing steel production in markets of particular importance for the
Group (in Europe, North America and Brazil), Group revenues in the
reporting quarter amounted to EUR 86.7 million, hence below the comparable
figure of the previous year (EUR 95.4 million). After nine months, the
Group achieved revenues of EUR 262.9 million (9M-2012: EUR 315.4 million).
Based on a high variability of costs and a favorable product mix, adjusted
operative EBITDA in Q3 improved significantly from EUR 4.1 million in the
previous year to EUR 7.9 million. In the nine-month-summary, the operative
result also came in above previous year, at EUR 17.6 million (9M-2012: EUR
16.9 million). Accordingly, the operative EBITDA margin improved in Q3 from
4.3% (previous year) to 9.1%, and after three quarters from 5.3% (2012) to
6.7% (2013). The adjustments made relate mainly to unrealized, non-cash
currency effects from the valuation of Group-internal, long-term loans. In
2013, these effects have so far been significantly negative at EUR 2.7
million; however, in 2012, significantly positive at EUR 3.0 million. The
reported, IFRS-accounted EBITDA after nine months amounted to EUR 14.9
million (9M-2012: EUR 19.8 million), and in the reporting quarter to EUR
6.2 million (Q3-2012: EUR 6.3 million).
'We are very pleased by the development of the third quarter, given the
challenging economic environment. Our measures to improve efficiency do
work, and will be accelerated by the comprehensive program which we have
just commenced to improve earnings until the end of 2014. Moreover, debt
reduction was realized swifter than expected, which is pleasant and will be
further accelerated,' commented SKW Metallurgie's CEO, Ines Kolmsee.
Positive Free Cash Flow applied for accelerated debt reduction
After the conclusion of the expansion and investment phase of the past, the
investments of the SKW Metallurgie Group have been significantly reduced as
announced. Thereby, and thanks to an efficient net working capital
management, free cash flow of the first nine months improved very
significantly from minus EUR 5.3 million to plus EUR 13.0 million. As
further announced, those proceeds were mainly applied to reduce debt.
Accordingly, it was achieved to reduce net financial debt swifter than
expected from EUR 73.9 million (end of 2012) to EUR 65.4 million (September
30, 2013).
Guidance confirmed
For the full year of 2013, the SKW Metallurgie Group continues to assume
that Group revenues will not reach the level of the previous year (EUR
404.6 million) due to the economic environment. Regarding operative EBITDA,
EUR 17.6 million have already been achieved in first nine months of 2013.
Therefore, the Executive Board assumes that in full year 2013, an operative
EBITDA at least at the level of the previous year (EUR 19.5 million) will
be reached. The Group aims at a significantly positive free cash flow and
net financial debt below the level of the previous year, also for full year
2013.
The quarterly report for the first nine months will be published, as
announced, on November 15, 2013.
Sabine Kauper becomes new CFO at the beginning of 2014
With the years turning to 2014, the financial department of SKW Metallurgie
will be passed into new hands. The hitherto CFO Oliver Schuster will leave
the Group in order to face new professional challenges effective January 1,
2014. The Supervisory Board of SKW Metallurgie named Sabine Kauper as his
successor. Ms. Kauper commands long-term experience in this realm. From
2007 to the end of 2011, she was CFO at Phoenix Solar AG, then listed in
the TecDAX index. Since December 2012, she has been Managing Director for
restructuring in an international engineering company. She has known SKW
Metallurgie already from her membership in the Supervisory Board (since
2009) as well as in the audit committee of the company, and is therefore
most acquainted with her forthcoming duties. Ms. Kauper holds the degree of
'Diplom-Betriebswirtin' (business degree) with electives in taxes and
audit; after her studies, she worked for four years in an auditing company.
'We are pleased that in the person of Ms. Kauper we have secured the ideal
candidate for the succession of Mr. Schuster as CFO for the SKW Metallurgie
Group. Besides her long-term experience in this realm, inter alia at also
publicly-traded Phoenix Solar AG, it is a significant advantage that Ms.
Kauper already knows SKW Metallurgie very well from her appointment as a
member of the Supervisory Board (since 2009), and as a member of the audit
committee. The Supervisory Board thanks Mr. Schuster for his good work for
the Group and wishes him a lot of success for his new endeavors,' said the
chairperson of the Supervisory Board of the company, Mr. Titus Weinheimer.
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: DE000SKWM013).
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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30.10.2013 Dissemination of a Corporate News, transmitted by DGAP - a
company of EQS Group 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
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf, Hamburg, München,
Stuttgart
End of News DGAP News-Service
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236965 30.10.2013
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