SKW Stahl-Metallurgie Holding AG / Final Results
20.03.2009
Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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Press release
2008 breaks records - medium-term guidance confirmed Guidance for 2008 fully reached
o Consolidated revenues up almost 60% to EUR 377.8 million
o Operating EBITDA almost doubled to EUR 32.2 million Plans to disburse a constant dividend of EUR 0.50 per share Medium-term operating EBITDA margin of 9% confirmed
Unterneukirchen (Germany), March 20, 2009. SKW Stahl-Metallurgie Holding AG
was able to significantly exceed its excellent revenue and earnings growth
in 2007 once again in business year 2008. In so doing, it substantially
exceeded its guidance, which it increased twice during the course of the
year under review. Consolidated revenues were up almost 60% to EUR 377.8
million (previous year: EUR 239.0 million) - despite the significant
downturn in the economic environment at the end of the fourth quarter.
Operating EBITDA almost doubled from EUR 16.7 million to EUR 32.2 million
and was thus higher than the guidance, which was initially increased in
August to EUR 28-30 million and then in November to at least EUR 32
million. In view of the ongoing investigations by the European Commission,
management resolved to form a provision of EUR 6.2 million, with the result
that the disclosed EBITDA totaled EUR 26.0 million; in the previous year
disclosed earnings totaled EUR 21.1 million including extraordinary income
of EUR 4.4 million. In view of the excellent 2008 results, the Managing and
Supervisory Boards intend to make a proposal to the General Meeting on June
4, 2009 to pay a gross dividend of EUR 0.50, unchanged year-on-year, per
dividend-entitled share for business year 2008.
The SKW Metallurgie Group, too, has been affected by the current economic
crisis. However, management believes that the high proportion of variable
costs means that the group is well equipped to record positive results also
in 2009. The business year will focus, in particular, on efficient cash
flow management. Subject to normalization of the underlying economic
conditions, the management has confirmed its medium-term target of an
operating EBITDA margin of 9% for 2011. The group's international
expansion, which it is consistently continuing, will contribute to
achieving this target.
'The SKW Metallurgie Group is characterized by a very high proportion of
variable costs compared to total costs, and can thus react significantly
more flexibly to lower demand than a company with a high proportion of
fixed costs. That makes us confident of recording a positive result also in
2009,' commented SKW Metallurgie's CEO Ines Kolmsee.
Earnings per share at EUR 2.28
The increase in revenues of almost 60% in 2008 was boosted by the first
time full-year consolidation of the ESM subsidiaries (Powder and Granules
segment). However, even on a pro forma basis without the ESM Group,
revenues would have been up by around 10%. However, profits before and
after taxes were reduced by the provision detailed above. This results in
earnings per share of EUR 2.28 (previous year: EUR 2.78).
Continued solid balance sheet structure
The SKW Metallurgie Group was able to further improve its balance sheet
structure in 2008. For example, the equity ratio (including minority
interests) improved from 42.0% to 42.6%. The net financial position changed
from EUR -41.8 million to EUR -44.9 million; the SKW Metallurgie Group's
debt is thus still very moderate. As a result of the excellent business
growth, the gross cash flow increased from EUR 14.4 million to EUR 18.3
million. In contrast, the net cash flow from operating activities totaled
EUR 5.0 million as a result of the increase in net working capital in 2008,
and was thus lower than in the previous year (EUR 11.7 million).
International expansion consistently continued despite the global recession
In 2009 and 2010 the SKW Metallurgie Group is going to consistently
continue the expansion that the group initiated in previous years into
high-growth emerging nations:
- In Brazil, SKW Metallurgie is planning to enter the market for hot metal
desulphurization mixes in 2009, and will in particular supply the steel
plant that the ThyssenKrupp Group is currently building.
- India is covered by the Jamipol joint venture already in place for hot
metal desulphurization agents; re cored wire, it will be covered by the new
joint venture in Bhutan from 2010. The SKW Metallurgie Group is setting up
a production furnace for calcium silicon in Bhutan in addition to cored
wire production.
- SKW Metallurgie has already had a successful presence in China, the
world's largest steel market, since 2007 with two of its own subsidiaries.
Reserved optimism for 2009 - return to previous profit targets over the
medium term
Business year 2009 will be a very difficult year for the steel industry,
which is the SKW Metallurgie Group's most important customer industry. This
will certainly also have a negative impact on demand for the SKW
Metallurgie Group's products. However, it will be possible to mostly
balance this effect thanks to the fact that variable costs account for a
high proportion of total costs. The company is thus confident that it will
also record positive results in the current year. Over the medium term,
i.e., after the underlying economic conditions have normalized, the
operating EBITDA margin is going to total 9%, as already announced for
2011.
You can find SKW Stahl-Metallurgie Holding AG's annual report and
additional information on our company on our Web site:
www.skw-steel.com
SKW Stahl-Metallurgie Holding AG KPIs
(in EUR million)<TABLE_SATRT>
2008 2007 Change
Revenues with third parties 377.8 239.0 +58%
- thereof cored wire 152.1 134.8 +13%
- thereof powder and granules 1 201.6 77.3 +161%
Gross margin 25.1% 24.2% +90 BP
EBITDA 26.0 21.1 +23%
- thereof cored wire 11.0 11.8 -7%
- thereof powder and granules 1 15.5 4.3 +260%
EBITDA (comparable) 32.2 16.7 +93%
EBITDA margin (comparable) 8.5% 7.0% +150 BP
EBIT 19.7 17.7 +11%
EBIT (comparable) 25.9 13.3 +95%
Earnings before taxes 17.0 16.9 +1%
Consolidated net income for the year (without minority interests) 10.1
12.3 -18%
Earnings per share in EUR 2 2.28 2.78 -18%
Dividend per share in EUR 3 0.50 0.50 +-0
Dec. 31, 2008 Dec. 31, 2007
Total assets 196.8 181.3
Equity (including minority interests) 83.8 76.2
Net financial debt 44.9 41.8
Gearing 4 0.54 0.55
Equity ratio 42.6% 42.0%
Gross cash flow in business year 18.3 14.3
Employees 516 563</pre>
(1) ESM consolidated since October 4, 2007
(2) Based on an unchanged 4,422,250 shares in circulation
(3) Payment in following year, this shows the gross amount per
dividend-entitled share; 2008: Planned proposal to the General Meeting
(4) Net financial debt to equity
Contact person:
SKW Stahl-Metallurgie Holding AG
Christian Schunck
Head of IR and Group Communication
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 Group's activities comprise three segments: Cored Wire,
Powder and Granules and Other. 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).
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.
SKW Stahl-Metallurgie Holding AG
Christian Schunck
Head of IR and Group Communication
Fabrikstrasse 6
84579 Unterneukirchen
Germany
Tel.: +49 8634 -617596
Fax: +49 8634-617594
E-Mail: schunck@skw-steel.com
Internet: www.skw-steel.com
DGAP 20.03.2009
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Language: English
Issuer: SKW Stahl-Metallurgie Holding AG
Fabrikstrasse 6
84579 Unterneukirchen
Deutschland
Phone: +49 (0)8634 61 7596
Fax: +49 (0)8634 61 7594
E-mail: info@skw-steel.com
Internet: www.skw-steel.com
ISIN: DE000SKWM013
WKN: SKWM01
Indices: SDAX
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Stuttgart, München, Hamburg, Düsseldorf
End of News DGAP News-Service
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DGAP-News: SKW Stahl-Metallurgie Holding AG: 2008 breaks records - medium-term guidance confirmed
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