Ad hoc announcement pursuant to Art. 53 LR
Swiss Steel Group records a significant increase in earnings in the second quarter of 2022
July 14, 2022
Swiss Steel Group has increased the adjusted EBITDA to over EUR 96 million in the second quarter of 2022 (same quarter previous year – EUR 65 million) and EUR 171 million during the first half of 2022 (same period last year – EUR 110 million). The consolidated results for the second quarter of 2022 rose to EUR 47 million (same quarter previous year – EUR 31 million) and to EUR 74 million in the first half of 2022 compared to EUR 35 million in the same period last year.
The internationally stable market environment resulted in this earnings growth despite high volatilities and rising prices for energy and raw materials. The price increases were largely passed on to our customers. The margins of all products improved. The overall reduced sales volume of 457 kilotons (same quarter previous year – 518 kilotons) is in particular due to the stoppage of the steel mill in Ugine. Production at this mill specializing exclusively in stainless steel is ramping up since June 2022. With the drop in the price of scrap noted at the end of the quarter as well as the overall instable geopolitical situation, it can be expected that there will be a slight decline in margins in the near term and somewhat lower market demand in the second half of the year. The material uncertainties of the energy sector in regard to price development and availability, particularly of natural gas, cannot currently be conclusively assessed.
Swiss Steel Group will publish half-year results for 2022 on August 16, 2022. Any adjustment of the previous outlook for the adjusted EBITDA of EUR 160 – 200 million for 2022 as a whole may be made in this context.
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About Swiss Steel Group
The Swiss Steel Group is today one of the world's leading providers of individual solutions in the special long steel products sector. The Group is one of the leading manufacturers of tool steel and non-corrosive long steel on the global market and one of the largest companies in Europe for alloyed and high-alloyed quality and engineering steels. With close to 10,000 employees and its own production and distribution companies in 30 countries on 5 continents, the company guarantees global support and supply for its customers and offers them a complete portfolio of production and sales & services around the world. Customers benefit from the company's technological expertise, consistently high product quality around the world as well as detailed knowledge of local markets.
This media release contains forward-looking statements, including presentations of developments, plans, intentions, assumptions, expectations, beliefs and potential impact or descriptions of future events, income, results, situations or outlook. These are based on the Company's current expectations, beliefs, and assumptions, which may differ materially from future results, performance, or achievements. The information contained herein is provided with the publication of this document. The forward-looking statements contained herein are not updated as a result of new information, future events, or for any other reason.