SKW Stahl-Metallurgie Holding AG
SKW Stahl-Metallurgie Holding AG: SKW Metallurgie’s business performance stabilized with moderate growth
DGAP-News: SKW Stahl-Metallurgie Holding AG / Key word(s): Quarterly / Interim Statement SKW Metallurgie’s business performance stabilized with moderate growth – First quarter 2017 marked by trend reversals in steel production in the USA and Europe – Margin pressure withstood, operationally stronger performance in the market compared with competitors – Balance sheet restructuring as the prerequisite for strategically sustainable growth – Investor process leads to postponement of the annual shareholders’ meeting in the interest of the company Munich (Germany), May 24, 2017. SKW Metallurgie’s performance in the first quarter of 2017 was affected by trend reversals in steel production in the United States and Europe and a positive business performance in Brazil. The SKW Group generated revenues in the core business of EUR 64.5 million and an operating EBITDA of EUR 3.4 million in the first three months of the year. These results were improved from the first three months of last year (revenues EUR 59.0 million, operating EBITDA EUR 2.6 million). “We mastered the crisis in 2016 and our operational performance in the market was stronger than that of many competitors,” said Dr. Kay Michel, CEO of SKW Stahl-Metallurgie Holding AG. “On the one hand, we benefited from the upward trend in our core markets since late 2016; on the other hand, we must also withstand further intensifying margin pressure. Our resilient market position can be credited in no small part to the prior-year effects of our internal continuous improvement program ReMaKe, which contributed an amount in the double-digit millions. In the current year, we anticipate a further earnings effect of an amount in the single-digit millions.” In view of its more efficient operational alignment, SKW is now confident that it will be able to seize opportunities in its core markets and improve its competitive position. Assuming a continuation of the positive development of basic operating conditions, the company expects that it will be able to increase its operating EBITDA well above the guidance level for fiscal year 2017 (revenues approx. EUR 230 million and operating EBITDA EUR 9 million). As the company has already stated multiple times in the past, it must restructure its balance sheet and strengthen its capital in accordance with the conditions agreed with its lenders as a prerequisite for strategically sustainable further development. “This is the fundamental prerequisite for implementing our medium-term plan and sustainably repositioning our company,” CEO Michel said. SKW is currently holding talks with interested investors. “The potential investors are studying our Group as quickly as possible and as thoroughly as necessary,” Michel said. “This effort in the interest in SKW Metallurgie is certainly worthwhile.” In light of this interest, SKW Metallurgie has postponed the original annual general meeting that was originally scheduled for early July 2017. The company will announce a new date in due course. The annual general meeting should be able to duly consider the outcome of the ongoing investor process. The overriding goal is to demonstrate a path of adequate and sustainable financial restructuring to the shareholders at the annual general meeting. Contact Thomas Schulz
About SKW Stahl-Metallurgie Holding AG and the SKW Metallurgie Group The SKW Metallurgie Group is the world leader in the market for chemical additives used for pig iron desulphurization and in the market for cored wires and other secondary metallurgy products. The Group’s products enable steel makers to produce high-grade steel products efficiently. The Group’s customers include the world’s leading steel companies. The SKW Metallurgie Group’s metallurgical expertise is the result of more than 50 years’ experience in this field. The Group is active in more than 40 countries today. The headquarters of SKW Metallurgie Group is located in Germany; its production facilities are located in France, the United States, Canada, Mexico, Brazil, South Korea, Russia, the People’s Republic of China and India (joint venture). The Group generated revenues of roughly EUR 230 million in 2016. It had approximately 560 employees at December 31, 2016. Disclaimer This press release may contain forward-looking statements that are based on the current assumptions and forecasts of the Management of the SKW Metallurgie Group and other currently available information. Due to various known and unknown risks and uncertainties, the company’s actual results, financial position, development or performance could differ significantly from the estimates expressed herein. SKW Stahl-Metallurgie Holding AG does not intend and assumes no obligation whatsoever to update such forward-looking statements and adapt them to future events or developments. Contact: Thomas Schulz Telefon: +49 171 86 86 482 E-Mail: tsc@tsc-komm.de
24.05.2017 Dissemination of a Corporate News, transmitted by DGAP – a service of EQS Group AG. |
Language: | English |
Company: | SKW Stahl-Metallurgie Holding AG |
Prinzregentenstr. 68 | |
81675 München | |
Germany | |
Phone: | +49 (0)89 5998923-0 |
Fax: | +49 (0)89 5998923-29 |
E-mail: | info@skw-steel.com |
Internet: | www.skw-steel.com |
ISIN: | DE000SKWM021 |
WKN: | SKWM02 |
Listed: | Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate Exchange |
End of News | DGAP News Service |