DGAP-News: SKW Stahl-Metallurgie Holding AG: SKW Metallurgie Continues Growth in 2011
(firmenpresse) - DGAP-News: SKW Stahl-Metallurgie Holding AG / Key word(s): Quarter
Results
SKW Stahl-Metallurgie Holding AG: SKW Metallurgie Continues Growth in
2011
16.05.2011 / 07:33
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Press Release
SKW Metallurgie Continues Growth in 2011
* Revenues in Q1 increase by 20% to 101.0 mill. EUR
* EBITDA improved from 6.2 mill. EUR to 10.0 mill. EUR
* Significant growth in revenues and earnings expected for 2011 and 2012
Unterneukirchen (Germany), May 16, 2011. The SDAX-quoted specialty
chemicals Group SKW Metallurgie continued its profitable growth in the
first quarter of 2011. The general economic recovery, in particular in the
steel industry which is of particular importance for the Group, led to an
increase in quarterly revenues by 20% from 83.8 mill. EUR to 101.0 mill.
EUR. SKW Metallurgie achieved an EBITDA of 10.0 mill. EUR (Q1-2010: 6.2
mill. EUR). Without the effects from the acquisition of a Swedish calcium
carbide plant - hence on a comparable level - EBITDA would have increased
by 31% to 8.2 mill. EUR. Thereby the Group confirms expectations of being
able to realize a significant growth in revenues and earnings for each of
2011 and 2012. However, the growth dynamics of the first quarter may slow
down during the further course of 2011.
'We started well into 2011. As scheduled, our plants in Bhutan and Russia
will start production in the second half of 2011, but yield their full
earnings only as of 2012. The same applies to our most recent acquisition
in Sweden, which will be subject to a restructuring phase in 2011', says
the CEO of the SKW Metallurgie Group, Ines Kolmsee.
Both segments contribute to positive development
The gross margin, which had already been high in Q1/2010, increased in
Q1/2011 from 27.4% to 28.6%, in spite of increasing material costs. EBIT
increased from 3.5 mill. EUR to 7.0 (adjusted 5.3) mill. EUR. Net profit
attributable to SKW Metallurgie's shareholders advanced from 1.2 mill. EUR
to 4.3 mill. EUR. Based on more than 6.5 mill. shares, this yields an EPS
of 0.65 EUR compared to 0.18 EUR in the comparable period of the previous
year. Both segments contributed to this positive development. For instance,
'Cored Wire' revenues increased by 30% to 47.8 mill. EUR. EBITDA increased
underproportionally from 2.8 mill. EUR to 3.3 mill. EUR, which was due to
start-up costs for the new sites in Bhutan and Russia scheduled to commence
production in H2/2011. In the 'Powder and Granules' segment revenues
improved to 45.6 mill. EUR (Q1/2010: 42.9 mill. EUR) and EBITDA from 4.5
mill. EUR to 8.0 mill. EUR. Adjusted for the effects of the acquisition in
Sweden, segment EBITDA stood at 6.2 mill. EUR.
Balance Sheet and Cash Flow coined by significant expansion
As expected, the strong international expansion significantly coined
balance sheet and cash flow. Primarily due to the acquisition in Sweden,
the balance sheet (total assets/total equities&liabilities) increased by
14.8 mill. EUR to 290.6 mill. EUR. Faced with an equity which only slightly
increased to 122.9 mill. EUR, the equity ratio decreased to a still very
solid 42.3% (Dec. 31, 2010: 44.3%) ab. In the first quarter, investments
were again high at 12.5 mill. EUR; they were mainly financed by taking out
loans. Hence, net financial debt increased to 59.5 mill. EUR compared to
the year-end 2010 level of 47.3 mill. EUR and correspondingly gearing from
0.39 to 0.48. Faced with a Net Working Capital increase by 4.4 mill. EUR
due to the economic upswing, a negative Free Cash Flow of 13.6 mill. EUR
(Q1/2010: -6.1 mill. EUR) was shown. However, Gross Cash Flow increased
from 3.0 mill. EUR to 3.3 mill. EUR.
Significant Growth in Revenues and Earnings expected for 2011 and 2012
Faced with the generally expected continuation of the positive development
of the global economy, and also of steel production (which is of particular
relevance for SKW Metallurgie), the Executive Board forecasts for each of
2011 and 2012 significant increases in revenues and earnings. For instance,
organic and external growth shall yield revenues significantly beyond the
so-far record level of 380.8 mill. EUR from business year 2010. For EBITDA,
the current guidance of 32 mill. EUR is being reaffirmed. In this context,
it should be taken into consideration that the new plants in Bhutan
(production of calcium silicon) and Russia (production of cored wire) are
scheduled to commence production only in H2/2011; accordingly, they will
yield revenues and earnings contributions only pro rata temporis in 2011.
The same applies to the calcium carbide plant in Sweden, for which
operative losses are expected in this year due to required restructuring.
Also scheduled for the second half of the year is the go live of plant
expansions in Brazil and the USA. Significantly positive contributions to
revenues and earnings of the new plants are expected as of 2012.
Accordingly, SKW Metallurgie should continue its profitable growth path
also in the business year ahead.
The interim report on Q1 2011 as well as further information on the Group
may be found at the Internet: www.skw-steel.com.
Contact
SKW Stahl-Metallurgie Holding AG
Christian Schunck
Head of IR and Corporate Communications
Fabrikstraße 6
84579 Unterneukirchen
Germany
Tel: +49 8634-62720-0
Direct line 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, the Peoples' Republic of China (2) and India (2 via
joint ventures). On addition, the plants in the USA and Brazil are being
expanded and a plant is being built in Russia.
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.
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.
Key Figures SKW Stahl-Metallurgie Holding AG
(in mill. EUR)
Q1-2011 Q1-2010 Change1) Relates to number of shares of 6,544,930
Revenues 101.0 83.8 +21%
- thereof Cored Wire 47.8 36.8 +30%
- thereof Powder and Granules 45.6 42.9 +6%
Gross margin 28.6% 27.4% -
EBITDA 10.0 6.2 +60%
- thereof Cored Wire 3.3 2.8 +17%
- thereof Powder and Granules 8.0 4.5 +77%
Adjusted EBITDA (w/o effects from Sweden) 8.2 6.2 +31%
EBITDA margin 9.9% 7.4% -
Adjusted EBITDA margin 8.1% 7.4% -
EBIT 7.0 3.5 +99%
Adjusted EBIT 5.3 3.5 +51%
EBT 6.5 3.2 +105%
Adjusted EBT 4.8 3.2 +52%
Cons. net profit (incl. non-controlling interests) 4.7 1.8 +166%
Cons. net profit (excl. non-controlling interests) 4.3 1.2 +258%
EPS in EUR 1 0.65 0.18 +251%
Gross Cash Flow 3.3 3.0 +10%
March 31, 2011 Dec. 31, 2010
Total assets/Total e&l 290.6 275.8
Equity (incl. non-controlling interests) 122.9 122.3
Net financial debt 59.5 47.3
Gearing 2 0.48 0.39
Equity ratio (incl. non-controlling interests) 42.3% 44.3%
Employees (balance sheet day) 912 790
2) 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
Fabrikstrasse 6
84579 Unterneukirchen
Deutschland
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: DE000SKWM013
WKN: SKWM01
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf, Hamburg, München,
Stuttgart
End of News DGAP News-Service
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124737 16.05.2011Unternehmensinformation / Kurzprofil:
Datum: 16.05.2011 - 07:33 Uhr
Sprache: Deutsch
News-ID 34105
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