Steico SE

Earnings Release • Nov 27, 2008

News Details

Corporate | 27 November 2008 08:40

STEICO Aktiengesellschaft: QIII/2008 figures and outlook

STEICO Aktiengesellschaft / Quarter Results

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QIII/2008 figures and outlook

• Revenues up despite difficult economic environment

• Strong pressure on prices, restructuring costs and one-off factors
  depress earnings

• Earnings fall further despite the program's initial success

Feldkirchen (Munich), November 27, 2008 – The economy clouded still further
in the third quarter. STEICO (ISIN DE000A0LR936) is countering the changed
conditions with a comprehensive restructuring and cost-cutting program. In
addition to procurement and production activities, key positions in the
Group have been re-staffed and it has underwent a strategic reorientation.
In addition to continued price pressure and the cost situation which
continued in the third quarter, expenses for the restructuring program also
depressed earnings. Initial successes could be seen at the end of the third
quarter, however these could not significantly prevent earnings from
falling still further.

Select key financial indicators

In T€ 9M 2007 9M 2008 Q3 2007 Q3 2008
Revenues 72,239 78,790 24,306 27,274
Revenue growth (in %) 15.2% 9.1% 6.2% 12.2%
Total operating revenue 75,973 82,830 24,917 25,601
EBITDA 11,918 5,467 3,197 554
EBITDA margin
(% of total operating 15.7% 6.6% 12.8% 2.2%
revenue)
EBIT 7,022 -834 1,516 -1,639
EBIT margin
(% of total operating 9.2% -1.0% 6.1% -6.4%
revenue)
Cash and cash equivalents 38,406* 29,418 – –
Equity ratio
(in %) 72.1%* 65.3% – –

* as at Dec 31, 2007

Outlook
Despite the success that the restructuring program has already achieved,
the charges at the end of the year are expected to outweigh the success.
This means that - for the first time - an annual loss is forecast.

The Managing Board believes that the restructuring program will have a
sustained, positive effect. The target is thus to lead STEICO back into the
profit zone despite the cloudy economic outlook in 2009. However, the
anticipated increase in revenues is expected to go hand-in-hand with
margins that will be still low in 2009.

In the first few months of the year business is traditionally influenced by
the weather and its impact on construction activities. If the upcoming
winter is significantly more severe than last year, this could veil the
positive effects of the restructuring program in the first quarter of 2009.

The STEICO Group's equity ratio of 65.3% shows that it has solid
foundations and its cash and cash equivalents of around € 29.4 million as
of September 30 mean that it has sufficient resources to come out of the
current crisis in a stronger position.

Contact:
Andreas Schulze
STEICO Aktiengesellschaft
Hans-Riedl-Strasse 21
85622 Feldkirchen
Fon: +49-(0)89-99 15 51-48
Fax: +49-(0)89-99 15 51-97
E-Mail: schulze@steico.com
www.steico.com

27.11.2008 Financial News transmitted by DGAP

Language: English
Issuer: STEICO Aktiengesellschaft
Hans-Riedl-Str. 21
85622 Feldkirchen
Deutschland
Phone: +49 - (0)89 - 99 15 51 - 0
Fax: +49 - (0)89 - 99 15 51 - 99
E-mail: info@steico.com
Internet: http://www.steico.com
ISIN: DE000A0LR936
WKN: A0LR93
Listed: Freiverkehr in Berlin, Düsseldorf, München; Entry Standard in
Frankfurt

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