Scholz Holding GmbH
Scholz Holding GmbH: Normalized operative result during first half of 2016 nearly on target
DGAP-News: Scholz Holding GmbH / Key word(s): Bond Press Release Scholz Holding GmbH London, 30 September 2016 Scholz Group: Normalized operative result during first half of 2016 nearly on target – Excess capacities and extreme price fluctuations on the international steel and scrap markets again lead to declining revenue For the first six months of 2016, the Scholz Group has achieved normalized group earnings before interest, taxes, depreciation and amortization (EBITDA) of 35.6 million Euros. Adjusted for one-offs and extraordinary effects, the operative result was thus nearly on targeted budget, despite the continued adverse market environment of the international recycling group, whose share capital is being taken over completely by the Chiho-Tiande Group (CTG), Hong Kong, as part of a financial restructuring process. The normalized EBITDA of the first half of 2015 amounts to 56.0 million Euros. The raw materials markets were still subject to high excess capacities and extreme price fluctuations during the first six months of the year. As a result, and as a consequence of the restructuring process at Scholz, earnings from January to June 2016 totaled 897 million Euros, significantly below the previous year’s earnings for the same period (1.33 billion Euros; -17 %). However, the associated decline of the EBITDA was partially compensated through improved margins, reduction of operative costs, and the positive effects of divestments. For the whole of 2016, Scholz still expects a normalized EBITDA upward of 70 million Euros. Revenues are expected to fall short of last year’s numbers due to market conditions and as a result of divestments. Positive effects on business development are anticipated after the conclusion of the financial restructuring process and from the integration of Scholz into the CTG Group. CTG is one of China’s leading recyclers and importers of mixed scrap metals, as well as the largest buyer of scrap electric motors from Europe. The figures of the first half of 2016 do not yet include steps toward Scholz’s financial recovery taken during the third quarter. Thanks to the great commitment of CTG, the Group has been able to reduce its debt by 500 million Euros. This allows the company to return to profitable growth and future business expansion. Contact details:
2016-09-30 Dissemination of a Corporate News, transmitted by DGAP – a service of EQS Group AG. |
Language: | English | |
Company: | Scholz Holding GmbH | |
Office Number: 610, 68 King William Street | ||
EC4N 7DZ London | ||
United Kingdom | ||
Phone: | 0044 20 7959 2291 | |
E-mail: | infoscholz@scholz-group.com | |
Internet: | www.scholz-group.com | |
ISIN: | AT0000A0U9J2 | |
WKN: | A1MLSS | |
Listed: | Regulated Unofficial Market in Dusseldorf, Munich, Stuttgart; Open Market in Frankfurt ; Wien (Geregelter Freiverkehr / Second Regulated Market) | |
End of News | DGAP News Service |