- Consolidated revenues of EUR 147.6 million reflect steel production
- Significant increase in quantities in the third quarter
- Positive EBITDA of EUR 1.7 million; adjusted EBITDA of EUR 6.8 million
- Recovery in steel economy raises hopes for 2010
Unterneukirchen (Germany), October 30, 2009. The SKW Metallurgie Group, which is listed
in the German SDAX small cap index, could show a significant upside trend in Q3, in
particular regarding results. Due to the high variability of costs as well as the active cost
management, the Group managed to yield a positive EBITDA of EUR 1.7 million for nine
months (according to preliminary figures), despite the economy-related decreases in
revenues.
In order to reach an operative comparability, it should be taken into consideration that this
figure includes burdens amounting to EUR 4.3 million due to raw material inventories, whose
current valuation is significantly above current market prices. The economic and financial
crisis resulted in a significant reduction of SKW Metallurgie’s turnover ratio for inventories;
consequently, the inventory value changes have been of particular significance.
Owing to increasing sales, these effects are particularly strong in Q3 (EUR 3.0 million);
however, SKW Metallurgie assumes that these negative effects will occur in Q4 for the last
time and in a significantly reduced order compared to Q3.
An additional negative factor was the EUR 0.8 million increase in provisions in connection
with the European antitrust proceedings in the calcium carbide sector.
After adjustment for these two extraordinary factors, EBITDA would have totaled EUR 6.8
million in the nine-month period.
Operationally, the third quarter showed the expected positive turnaround. This is clearly
shown by the increased demand for the quality products of SKW Metallurgie; Q3 yielded
revenues of EUR 54.4 million and an adjusted EBITDA of 4.0 million.
For the first nine months, the group has recorded revenues of EUR 147.6 million, which is
down by around 50% (as expected) compared to the previous year’s record-breaking figures.
This development was primarily due to the more than 40% downturn in steel production in
SKW Metallurgie’s key sales regions of Europe and North America. Technically demanding
solutions for the production of top grade steel account for more than 90% of SKW
Metallurgie’s consolidated revenues. Within the nine-month period, the quantity of steel
production increased during the third quarter, in September in particular, and as a result, so
did demand for SKW Metallurgie’s top quality products.
In view of this increasing demand, the Managing Board continues to expect positive
operating EBITDA for 2009 as a whole. Subject to a recovery in the global economy, a
significant increase in revenues and substantially improved earnings are forecast for 2010.
Publication of the full report for the third quarter of 2009 is scheduled for November 11.
Contact:
SKW Stahl-Metallurgie Holding AG
Christian Schunck
Head of IR and Group Communications
Fabrikstrasse 6
84579 Unterneukirchen
Germany
Tel.: +49 8634 -617596
Fax: +49 8634-617594
E-Mail: schunck@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, South Korea, the Peoples’ Republic of China (2) and India (2 via joint
ventures); the acquisition of Tecnosulfur (now signed) means that it has added a new production facility in Brazil.
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.
