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

DGAP-News: SKW Stahl-Metallurgie Holding AG / Key word(s): Miscellaneous SKW Stahl-Metallurgie Holding AG: Efficiency Program Substantiated 25.09.2013 / 21:37 --------------------------------------------------------------------- Efficiency Program Substantiated * Expected earnings improvements of about 8 million EUR per year * Multitude of measures primarily concern optimization of organization, production, sales, and procurement * Goal: Return to quo-ante earnings levels, Significantly increase free cash flow, Sustainably reduce debt Unterneukirchen (Germany), Sept. 25, 2013. The Executive Board of SKW Stahl-Metallurgie Holding AG today presented to the Supervisory Board of the company the details of the already announced comprehensive efficiency program. The majority of the expected earnings improvements of about 8 million EUR per year (EBITDA) is to be realized as of business year 2014. The one-off costs expected in this context should be below 1 million EUR. Thereby, the company shows a consequent reaction to the challenging macroeconomic environment, as announced in the context of the release of the H1 figures. The measures, which have in part already been initiated, are expected to lead to sales increases as well as cost reductions. The program encompasses various individual measures, covering all segments and locations. 'With the efficiency program, we consequently react to the difficult environment in the steel industry. We thereby manage to realize earnings potentials of about 8 million EUR per year, at relatively low one-off costs. By doing so, we intend to return to the path of our quo-ante profitability, and through significantly positive free cash flows also significantly improve our balance sheet quality,' commented Ines Kolmsee, CEO of SKW Metallurgie, the program. Goal: Return to quo-ante earnings levels, Significantly increase free cash flow, Sustainably reduce debt By implementing the efficiency program until the end of 2014, the Executive Board intends to return of the quo-ante earnings levels of 2010 and 2011 with EBITDA margins above 7%, subject to a stable economic development. This should also allow for the generation of significantly increasing, positive free cash flows. After the global expansion of the SKW Metallurgie Group that had been pushed in recent years was successfully concluded at the end of 2012, the increased EBITDA should result in significantly higher, positive free cash flows, whereby the net financial debt of the Group should be reduced sustainably. For 2013, the company had announced in mid-August that sales and EBITDA levels of the previous year might not be reached again due to the slow pace of steel production. Operative EBITDA of H2 should be above that of H1. 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: 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. End of Corporate News --------------------------------------------------------------------- 25.09.2013 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 --------------------------------------------------------------------- 231989 25.09.2013