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SCHMOLZ + BICKENBACH achieves annual targets despite slowdown in the fourth quarter

Steel News - Published on Thu, 14 Mar 2019

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SCHMOLZ + BICKENBACH announced that annual targets for 2018 were achieved. CEO Clemens Iller said “In 2018 we achieved most of our targets despite strong headwinds in the final quarter. Adjusted EBITDA was within the target range, which was increased in the middle of the year and the integration of Ascometal, acquired in February, is progressing rapidly. However, the slowdown in global economic momentum towards the end of the year and the gloomy outlook for global economic growth also left their mark on SCHMOLZ + BICKENBACH's fourth-quarter results. In the current market environment with many political and macroeconomic uncertainties, we forecast adjusted EBITDA of between 190 million euros and 230 million euros for the full-year.”

Sales volume in 2018 at 2,093 kilotons, 16.5% higher than in 2017 thanks to Ascometal

Free Cash Flow of EUR –159.8 million compared to EUR 16.3 million in the prior year, lower due to investments in future growth and increased net working capital, primarily at Ascometal

Net debt increased to EUR 655 million due to acquisition of Ascometal and higher inventory levels, from EUR 442 million at year-end 2017; almost unchanged compared to EUR 651 million at the end of Q3 2018

Impairment of EUR –109 million (EUR –81 million after taxes) on Finkl Steel Business Unit due to structural market changes in recent quarters

Outlook for the 2019 financial year: due to political and macroeconomic risks, SCHMOLZ + BICKENBACH expects a continuation of the dip in growth followed by a recovery in the further course of the year. On this assumption, adjusted EBITDA of between EUR 190 million and EUR 230 million is forecasted.

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Posted By : Rabi Wangkhem on Thu, 14 Mar 2019
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