Swiss-based special steel producer and distributor Schmolz+Bickenbach has announced that it no longer expects to meet its previous EBITDA range forecast of €190-230 million for the current year. In its latest forecast, Schmolz+Bickenbach now expects to achieve an EBITDA of €160-180 million.
The company said that it has experienced decreases in order intake, sales volume and revenue up to August this year. The ongoing and significant decrease of raw material prices led to additional inventory write-downs. Additionally, the news of the slowing down of the Chinese economy resulted in further pressure on raw material prices, which was greater than expected. Lower prices for raw materials and alloying elements increased the pressure on base prices and led to lower revenue due to the lower alloying surcharge, Schmolz+Bickenbach explained.