DGAP-Adhoc
SKW Stahl-Metallurgie Holding AG: SKW Stahl-Metallurgie Holding AG affected by decreasing steel production in the US and other negative effects of the global steel economy
SKW Stahl-Metallurgie Holding AG / Key word(s): Preliminary Results/Change in Forecast
13.08.2015 18:55
Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted
by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
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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.
13.08.2015 The DGAP Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de
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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: Regulated Market in Frankfurt (Prime Standard); Regulated
Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich,
Stuttgart
End of Announcement DGAP News-Service
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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.
13.08.2015 The DGAP 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: Regulated Market in Frankfurt (Prime Standard); Regulated
Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich,
Stuttgart
End of Announcement DGAP News-Service
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