DGAP-News

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 Stahl-Metallurgie Holding AG: SKW Metallurgie's business performance stabilized with moderate growth 24.05.2017 / 19:18 The issuer is solely responsible for the content of this announcement. 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."