Schmolz + Bickenbach adjusts guidance for fiscal year 2019
by Hans Diederichs
Schmolz + Bickenbach, a global leader in special long steel, today lowered its earnings forecast for the 2019 financial year based on the preliminary figures for the first eight months of 2019 available at the end of August. The company is now forecasting adjusted EBITDA of between EUR 70 million and EUR 100 million.
Demand for steel weakened further during the third quarter due to political uncertainties and escalating trade conflicts. The order backlog continued to decline, as subdued demand from automotive was aggravated by softening orders from mechanical engineering. This is triggering a more pessimistic outlook.
Subsequent to the deteriorated results and outlook, Schmolz + Bickenbach is reviewing the value-in-use of its operating assets. Schmolz + Bickenbach continues to decisively counteract to the adverse market development and to minimize the impacts on the company. The operating improvement and cash preservation measures will be intensified.
Source and photo. Schmolz + Bickenbach