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Scholz Holding GmbH: In spite of a difficult competitive environment, the profitability of the Scholz Group improved in the first half of 2014

DGAP-News: Scholz Holding GmbH / Key word(s): Bond
Scholz Holding GmbH: In spite of a difficult competitive environment,
the profitability of the Scholz Group improved in the first half of
2014

30.09.2014 / 15:56

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Press Release Scholz Holding GmbH

Essingen, 30 September 2014

In spite of a difficult competitive environment, the profitability of the
Scholz Group improved in the first half of 2014

- Group EBITDA increased by 1%, EBIT by 33%

- Operating pre-tax profit of 6.4 million euros

- Group sales of 1.61 billion euros were recorded for the six months

- Varying developments in the international scrap markets

- Debt reduction progressing well in the light of the investment in the
Group of a new external shareholder and significant divestments

Scholz Holding GmbH (previously: Scholz AG) improved its profitability in
the first half of 2014 in spite of a continuingly difficult market
environment. Earnings before interest, taxes, depreciation, amortisation
and extraordinary items (EBITDA) of 71.0 million euros were recorded, a
slight increase over the corresponding prior year period EBITDA (70.2
million euros). Earnings before interest and tax and extraordinary items
(EBIT) showed a stronger increase of 33.0% to 43.5 million euros (first
half of 2013: 32.6 million euros).

Before taxes and extraordinary items, the international recycling Group
realised a half year profit of 6.4 million euros, after a loss in the
corresponding prior year period of
3.1 million euros. For the first half of the year, Scholz however showed a
substantial profit after taxes of 77.9 million euros, which is largely
attributable to extraordinary income (amounting to 74.2 million euros) in
connection with the acquisition of a 39.9% stake in Scholz Holding GmbH by
the Japanese Toyota Tsusho Corp. (TTC). Extraordinary items amounts to
-75.5 million euros at the first half year of 2013.

Group Sales stood at 1.61 billion euros after six months, approximately
21.5% below the corresponding prior year value of 2.05 billion euros. The
fall in sales is attributable to the following main influences:

- Market- and weather-related weaker tonnage development in some regions,
e.g. in Eastern Europe and Germany;

- Deconsolidation effects through scheduled sales of businesses and
investments in the context of the restructuring of the Group;

- Conscious decision to forego low-margin tonnages in order to improve
the quality of earnings.

The total tonnage from January to June 2014 stood at 3.98 million tonnes
(t) against
4.63 million t in the corresponding period in 2013 (-15.3%).

The investment of the new shareholder TTC in Scholz Holding enabled a
significant reduction in debt, together with cash inflows from divestments.
The net debt disclosed in the balance sheet of the Group at 30 June 2014
stood at 863.4 million euros, which is approximately 198 million euros
lower than at the end of last year (1.06 billion euros). The maximum
possible reduction of net debt remains a key objective of the Group.

Outlook for Full Year 2014
The Management Board considers that the market environment for Scholz in
the second half of the year shows modest potential in view of the
continuingly difficult situation in the European steel industry. However,
the engagement of the strategic partner TTC is viewed positively by
suppliers in particular in Germany and neighbouring countries, leading to
positive effects on business. The price trend for scrap is expected to
remain stable.

Against this background - and also in view of the cost reduction and
efficiency improvement measures already implemented or planned throughout
the Group - Scholz expects an improvement in EBITDA and EBIT compared to
the prior year, with lower tonnage and sales levels.



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Language: English
Company: Scholz Holding GmbH
Am Bahnhof
73457 Esslingen
Germany
Phone: [phone]
Fax: [phone]
E-mail: [e-mail]
Internet: www.scholz-ag.de
ISIN: AT0000A0U9J2
WKN: A1MLSS


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289584 30.09.2014