By Andrea Figueras
Swiss Steel Holding has decided to withdraw its full-year expectations due to lower-than-anticipated demand and profitability in July and August.
Adjusted Earnings Forecast Revision
The Swiss steel producer announced on Monday that it no longer expects to achieve its previous forecast of adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) ranging between 160 million and 200 million euros ($170.6 million-$213.2 million) by 2023. The company did not provide a new outlook at this time.
Challenges and Uncertainties
Swiss Steel Holding highlighted various challenges it is currently facing, including fluctuating raw material and energy prices, disruptions in the supply chain, and ongoing geopolitical uncertainties.
Factors Impacting Guidance
The company specifically attributed its decision to revise its forecast to a 17% decrease in German electrical steel production in July compared to the same period last year. Additionally, pressure from Asian imports has negatively affected the margins of its stainless steel division. Furthermore, the overall uncertainty in demand has contributed to Swiss Steel Holding’s choice to withdraw its guidance.
Restructuring Program Continues
Swiss Steel Holding intends to persevere with the implementation of its restructuring program as it navigates the aforementioned challenges.