The continuing uncertainties associated with the economic weakening caused a further contraction in our sales markets in the last few months. Consequently, so far in the second half of 2012, revenue and income are below our expectations.
Despite the optimization measures that were implemented, the decline in income could not be compensated by the measures on the cost side in the short term. The necessary negotiations with employee representatives of SCHMOLZ+BICKENBACH Distributions GmbH for the implementation of restructuring measures are well advanced, so that we expect significant potential savings to be realized from 2013.
We also expect further positive effects from the restructuring measures at Deutsche Edelstahlwerke GmbH which are currently being negotiated.
As forecasted at the half yearly presentation, at year end SCHMOLZ+BICKENBACH will report a clear reduction in EBITDA by comparison with the previous year. In view of the difficult market situation, the expectation expressed at half year of slightly positive earnings before taxes for full-year 2012 can no longer be maintained.
Source - SCHMOLZ+BICKENBACH
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