Schmolz&Bickenbach : SCHMOLZ + BICKENBACH after difficult third quarter on track for reaching the year end targets

million).

Net debt came to EUR 543.7 million (31.12.2014: EUR 587.2 million), a decrease of EUR 43.5 million or 7.4% on the figure as at 31 December 2014. The decrease is mainly attributable to the proceeds from the disposal of selected distribution entities of EUR 48.6 million as well as a significant reduction of net working capital as at 30 September 2015.

Earnings after taxes from continuing operations saw a total decrease of EUR 64.6 million to EUR - 20.5 million in the first nine months of the fiscal year (9M 2014: EUR 44.1 million).).

At EUR -3.1 million (9M 2014: EUR 1.7 million), earnings after taxes from ordinary activities of the discontinued operations until deconsolidation were EUR 4.8 million down on the figure for the same period of the prior year. The loss on disposal resulting from deconsolidation came to EUR 128.1 million as at 30 September 2015. As a result, overall earnings after taxes from discontinued operations came to EUR -131.2 million (9M 2014: EUR 1.7 million).

Mainly due to the loss from the discontinued operations, the Group's net income (loss) (EAT) was down by EUR 197.5 million on the prior-year figure at EUR - 151.7 million (9M 2014: EUR 45.8 million).

Expectations regarding global economic development in 2015 have continued to fall. The World Bank, OECD and IMF anticipate growth of between 2.8% and 3.1% (previously: 2.8% to 3.5%). It is still assumed that the regional picture will be quite mixed in 2015.

In contrast to the improved expectations for the general economic situation, the outlook for steel demand has deteriorated significantly. After the World Steel Association (WSA) considerably reduced the expected average growth rate from 2.0% to 0.5% in its April forecast for steel consumption for 2015, the WSA now estimates a decrease of 1.7% in its October forecast. Closer inspection reveals that particularly in the important Asian market, which accounts for by far the highest steel consumption in terms of tonnes (2014: 1 016 million tonnes), demand is not only down, but a decline of 2.1% is now expected (previously: an increase of 0.6%) for 2015. Consumption in the EU is expected to grow by just 1.3% in 2015 instead of the 2.1% expected to date. The second-largest steel consumer is the European Union (EU), with around 150 million tonnes. In the third-largest market, NAFTA, a more pronounced decrease of 2.7% (previously: 0.9%) is expected for 2015^.

Our expectations for the fiscal year 2015 as a whole remain cautious on account of the challenging economic situation and the associated fall in demand for steel.

As a result of the reclassification of the selected distribution entities as discontinued operations, we have reduced our estimates for the sales volumes by the amounts these entities generated with third-party products. In addition, due to the economic conditions mentioned above, significant improvement is unlikely in the fourth quarter. We therefore anticipate sales volumes in 2015 to be slightly lower than 2014 levels.

The news regarding an economic slowdown in China has put commodity prices under even more pressure than anticipated. Low prices for scrap and alloying elements increased the pressure on base prices and resulted in lower revenue due to diminished alloy surcharges. In addition, the oil and gas business came to an almost complete standstill temporarily on account of the low oil prices. Although the situation recently stabilised, the continued weakness of crude oil prices means the recovery of the oil and gas business expected for the second half of 2015 is now unlikely.

Nevertheless, SCHMOLZ + BICKENBACH still expects EBITDA to come in at between EUR 160 million and EUR 180 million for the 2015 reporting year. This target is based on the assumption that commodity prices remain stable and that no other unexpected events occur that impact negatively on our business activities. We will respond to the challenges posed by exchange rates and uncertainties in the oil and gas business by systematically implementing and expanding our measures to improve efficiency.

Following reclassification of the discontinued operations as at 31.3.2015 and deconsolidation of the respective entities as at 1.7.2015, the figures for the reporting period now refer only to continuing operations. The prior-year figures were restated accordingly.

Following reclassification of the discontinued operations as at 31.3.2015 and deconsolidation of the respective entities as at 1.7.2015, the figures for the reporting period now refer only to continuing operations. The prior-year figures were not restated and continue to include all operations..