SCHMOLZ + BICKENBACH lowers guidance for fiscal year 2019
Lucerne, October 23, 2019 – SCHMOLZ + BICKENBACH, a global leader in special long steel, has today lowered its earnings forecast for the 2019 financial year on the basis of business developments since the beginning of September. Adjusted EBITDA is now expected to be below the range of EUR 70 million to EUR 100 million issued in September.
After the usual seasonal slowdown in the summer months, demand in September recovered from its lowest point in August, but at a much lower rate than expected. A noticeable recovery in order intake and order backlog also failed to materialize in the first weeks of the fourth quarter. Accordingly, the Company expects adjusted EBITDA to be below EUR 70 million. Due to the further increase in political and economic uncertainties and the seasonal decline in demand towards the end of the year, which is customary, the Company is refraining from issuing a more accurate forecast.
SCHMOLZ + BICKENBACH continues to decisively counteract to the adverse market development and to minimize the impacts on the company. In addition to intensifying its operating improvement and cash preservation measures, the company plans, as also announced today, to carry out a capital increase in 2019 to strengthen its balance sheet.
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SCHMOLZ + BICKENBACH will hold a conference call at 09:00 a.m. (CEST) (see attachment).