DGAP-News: SKW Stahl-Metallurgie Holding AG: Profi

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 --------------------------------------------------------------------- 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@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 --------------------------------------------------------------------- 30.10.2013 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 --------------------------------------------------------------------- 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@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 --------------------------------------------------------------------- 236965 30.10.2013