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

DGAP-News: SKW Stahl-Metallurgie Holding AG / Key word(s): Final Results SKW Stahl-Metallurgie Holding AG: Adjusted operating EBITDA for 2013 up year-on-year 28.03.2014 / 07:01 --------------------------------------------------------------------- SKW Metallurgie: Adjusted operating EBITDA for 2013 up year-on-year * Adjusted operating EBITDA up year-on-year to EUR 22.1 million (previous year: EUR 19.5 million) * Free cash flow lifts to EUR 15.3 million, net financial debt reduced Unterneukirchen (Germany), March 28, 2014.The global specialty chemicals group SKW Metallurgie has succeeded in improving its operating result as forecast, despite difficult underlying conditions. For example, adjusted operating EBITDA was up year-on-year to EUR 22.1 million (previous year: EUR 19.5 million). The adjusted operating EBITDA margin increased from 4.8% to 6.4%. In view of the downturn in steel production quantities on the relevant markets for the Group (EU, North America and Brazil) as well as external influences relating to exchange rates and raw materials prices, consolidated revenues fell by 14% to EUR 347.4 million (2012: EUR 404.6 million). In view of the negative EPS in the amount of EUR -0.26 (previous year: EUR 0.64), however, the Executive and Supervisory Boards will make a proposal to the Company's Annual General Meeting to disburse no dividend for fiscal year 2013, and to carry the accumulated profits 2013 of the parent company SKW Stahl-Metallurgie Holding AG forward onto new account. Gross margin up to 31.6% The Group's operating performance can also be seen in the further improvement in the gross margin from 29.2% to 31.6%. As a result of several non-operating extraordinary factors (mainly non-realized and thus non-cash currency translation effects, which mostly stem from the valuation of intra-Group loans), accounting EBITDA, calculated with IFRS figures, totaled EUR 15.2 million in fiscal year 2013 (previous year: EUR 20.7 million). Free cash flow lifts to EUR 15.3 million, net financial debt cut by EUR >10 million The Group focused on improving its free cash flow also in 2013. It clearly reached this goal with an improvement from EUR 8.0 million to EUR 15.3 million - thanks to the lower level of net working capital and the significant reduction in investments as a result of the end of the expansion and investment phase. The bulk of these funds were used, as announced, for reducing net financial debt, which thus fell from EUR 73.9 million at the end of 2012 to EUR 63.8 million at the end of 2013. In view of its equity ratio of 41.3% (end of 2012: 40.2%), and its gearing of 0.60 (December 31, 2012: 0.61), the SKW Metallurgie Group continues to command a solid balance sheet structure. Further information on the Group and the report on fiscal year 2013 can be found online at: www.skw-steel.com. â?? Contact SKW Stahl-Metallurgie Holding AG Christian Schunck Head of IR and Corporate Communications Rathausplatz 11 84579 Unterneukirchen Germany Fax: +49 8634 62720-15 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 (from August 15, 2011: new ISIN 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. â?? KPIs for the SKW Metallurgie Group (in EUR million) <pre> 2013 2012 External revenues 347.4 404.6 - thereof Cored Wire 159.0 183.8 - thereof Powder and Granules 165.7 192.7 EBITDA (adj. op.)1 22.1 19.5 - thereof Cored Wire 10.6 9.1 - thereof Powder and Granules 11.3 12.6 EBITDA 15.2 20.7 EBIT (adj. op.)1 11.1 9.0 EBIT 4.2 10.3 Earnings before taxes (adj. op.)1 6.5 4.8 Consolidated net result for the period (SKW) -1.7 4.3 Gross margin 31.6% 29.2% EBITDA margin (adj. op.)1 6.4% 4.8% Earnings per share in EUR2 -0.26 0.64 Cash flow from operating activities 20.4 30.4 Free cash flow 15.3 8.0 Dec. 31, 2013 Dec. 31, 2012 Total assets 255.1 299.6 Equity ratio (incl. non-controlling interests) 105.5 120.6 Net financial debt 63.8 73.9 Gearing 3 0.60 0.61 Equity ratio (incl. non-controlling interests) 41.3% 40.2% Employees 1,010 1,011 </pre> Taking the changes under IAS 19R into account, figures for 2012 adjusted accordingly (1) Adjustments: non-realized and thus non-cash currency translation effects, which mostly stem from the valuation of intra-group loans; one-off expenses for the income-boosting program "EPC"; effects from non-period litigation (2) Based on an unchanged number of 6,544,930 shares (3) Net financial debt to equity (incl. non-controlling interests) End of Corporate News --------------------------------------------------------------------- 28.03.2014 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 --------------------------------------------------------------------- 260190 28.03.2014