Emmenbrucke, Switzerland – After a positive development in the first half of 2008 for Schmolz+Bickenbach, in the second half-year order bookings and shipped volumes fell sharply. Simultaneously, falling raw material and alloy costs put sales revenues under pressure. As from the fourth quarter of 2008, capacity reduction measures were unavoidable. Given the low visibility in the markets, it is currently difficult to make any statement about the further progress of business in 2009.

Schmolz+Bickenbach expects that developments may be better in the energy extraction and generation segments. In addition, the company expects revenue and earnings for 2009 to be lower than in the preceding years. The adaptations that the company has made in its workforce and capacities, rigorous cost control, strict working capital management, the cost-reduction and financing measures that have been introduced and the investment projects that were implemented in the last few years make the company confident that with the position it occupies in the engineering, stainless and tool steels segments, the company is well-equipped for the challenges of the current year.

Submitted by Schmolz Bickenbach March 26