Half Year 2024 Swiss Steel Holding AG Earnings Call Transcript
Key Points
- Swiss Steel Holding AG (XSWX:STLN) achieved a positive free cash flow of EUR 85 million for the full year 2023, compared to a negative EUR 54 million in 2022, primarily due to successful inventory reduction initiatives.
- The company has initiated a comprehensive restructuring program, SSG 2025, aimed at restoring a competitive cost structure and ensuring operational excellence.
- Swiss Steel Holding AG (XSWX:STLN) plans a capital increase of EUR 300 million, fully backstopped by its major shareholder, BigPoint Holding, to strengthen its financial position.
- The company is Europe's largest electric arc steel producer, giving it a competitive advantage in producing low-emission steel, which is crucial for global decarbonization efforts.
- Swiss Steel Holding AG (XSWX:STLN) has successfully divested non-core assets, including seven distribution entities in Eastern Europe, to focus on core activities and reduce complexity.
- Swiss Steel Holding AG (XSWX:STLN) experienced a significant decline in sales volume, down 17% to 1,375 kilotons, due to weak market demand and economic slowdown.
- The company's revenue fell by almost 20% to EUR 3.244 billion for the full year 2023, with a more significant drop in the second half of the year.
- Swiss Steel Holding AG (XSWX:STLN) reported a negative adjusted EBITDA of EUR 41 million, EUR 176 million lower compared to 2022, due to weak markets and inventory valuation losses.
- The equity of Swiss Steel Holding AG (XSWX:STLN) decreased from EUR 531 million to EUR 234 million, resulting in an equity ratio of 12.1%, due to a negative net income of EUR 295 million.
- The company faced challenges in the automotive and mechanical engineering sectors, with reduced capital investments and a decrease in order backlog by 22%.
Dear ladies and gentlemen, welcome to the conference call of Swiss Steel Group. At our customer's request, this conference will be recorded. (Operator Instructions)
May I now hand over to Burkhard Wagner, who will lead you through this conference. Please go ahead.
Yes. Thank you very much, Ana. Good morning, ladies and gentlemen. I'd like to welcome you to Swiss Steel Group's media and investor conference call on the occasion of the release of the 2023 annual results. The speakers at today's conference are our CEO, Frank Koch; and CFO, Marco Portmann. The slides for the presentation, which will follow immediately, the media release and the annual report has been made available on our website since 7:00 a.m. this morning.
During the conference, the speakers will make forward-looking statements as described in the disclaimer on slide 2. These statements are based solely on our expectations or forecasts of future development and may differ
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