ad hoc

SKW Stahl-Metallurgie Holding AG affected by decreasing steel production in the US and other negative effects of the global steel economy:

  • Second quarter 2015 operatively slightly below previous year
  • Guidance for full year adjusted
Unterneukirchen (Germany), August 13, 2015. Based on preliminary figures, the SKW Stahl-Metallurgie Holding AG Group, Unterneukirchen (Germany), ISIN DE000SKWM021, achieved revenues in the second quarter which were some 5 % below previous year (Q2-2014: EUR 69.5 million) and EBITDA of EUR -0.1 million (Q2-2014: EUR 2.8 million). No longer included in these figures are the corporate entities SKW-Tashi (Bhutan) and SKW-Quab (USA), classified as non-current assets held for sale pursuant to accounting standard IFRS 5.

Reasons for this development are operatively on the one hand a significant decrease in steel production in the US market (which is of particular significance for the SKW Metallurgie Group), and on the other hand the overall steel economy, which has also been depressed in other regions. In the second quarter of 2015, a net currency charge of about EUR 3.5 million must be considered (previous year: net currency gain of EUR 0.7 mill.), mainly arising from non-realized effects from intercompany loans. After additionally adjusting the previous year’s quarter for extraordinary depreciation of EUR 1.7 million, operative EBITDA in the second quarter of 2014 amounted to EUR 3.8 million; hence the comparable operative figure for the second quarter of 2015 (EUR 3.4 million) is EUR 0.4 million beneath the previous year’s figure.

The Company assumes that there will be no overall recovery of the global and in particular the US-American steel economy before the end of 2015. It therefore had to adjust its forecast to the expected volume development of steel production, to the effects of price decreases, in particular and inter alia for consumables for steel production, as well as to the preliminary figures for the second quarter 2015. The SKW Metallurgie Group now expects revenues and EBITDA for the full year 2015 to be significantly below the previous year (revenues 2014: EUR 279.0 million; relevant EBITDA 2014: EUR 14.8 million); for EBITDA given a lacking revitalization of the US-American steel economy a decrease by up to 20 %. This guidance (as well as the figures given for the previous year) is based on the corporate structure of the half-year financial statements 2015; moreover, it does not include potential deconsolidation effects, extraordinary legal topics or currency effects.

Against this background the Executive Board is currently evaluating whether and to which extent the announced capital increase can be enacted, while duly protecting the interests of the Company and the shareholders.