Swiss-based special steel producer and distributor Schmolz+Bickenbach has announced that it lowered its earnings forecast for the 2019 financial year on the basis of the preliminary figures for the January-August period of the current year due to lower steel demand in the third quarter driven by political uncertainties and escalating trade conflicts.
The company’s forecast for the adjusted EBITDA for the 2019 financial year is €70-100 million. According to the company, this decrease is driven also by lower orders due to slack demand from automotive sector which is aggravated by declining orders from mechanical engineering.
As a result of the negative results and outlook, the company is reviewing the value in use of its operating assets, while it “decisively counteract to the adverse market development and to minimize the impacts on the company.” In addition to that, the company stated that it will strengthen the measures relating the operating improvement and cash preservation.