DGAP-News: STEICO Aktiengesellschaft:Figures for H1 2008 and outlook

STEICO Aktiengesellschaft / Half Year Results/Half Year Results

18.09.2008 

Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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Figures for H1 2008 and outlook
• Revenues stable at last year's level
• Impact of financial crisis on real economy depresses earnings

Feldkirchen (Munich), September 18, 2008 – STEICO AG (ISIN DE000A0LR936)
was able to increase its revenues by 7.5% in the first six months of 2008
(Jan. 1 – June 30, 2008) to EUR 51.5 million (previous year: EUR 48.0
million).  This is due to the successful integration of the production
facility in Casteljaloux (France) and currency translation effects from the
increase in the value of the Polish Zloty.

Consolidated EBITDA totaled EUR 4.9 million (previous year: EUR 8.7
million). This change was due to weaker demand and continued price pressure
as a result of the general economic uncertainties in the first half of the
year. In addition, the increase in the value of the Polish Zloty also had a
corresponding impact on costs. Positive effects from the restructuring and
optimization activities already put in place are expected from the first
half of 2009.

The strong capital expenditure in the past few years is reflected in EBIT
in the form of increased amortization and depreciation. EBIT thus totaled
EUR 0.8 million in the first half of 2008 (previous year: EUR 5.5 million).

Despite the continued insecurity on the market, the STEICO Group was able
to reinforce its position on the market in the second quarter. However, the
second quarter did not lead to any relaxation in selling prices, and the
pressure on earnings thus continued.

As a result of the increasing impact the financial crisis is having on the
real economy and the cloudy economic outlook in the whole of Europe, STEICO
AG believes that a sustained recovery of the markets will not take place
before 2010. As a result, the company will not be able to fully reach its
own targets for 2008. For this reason, the forecast issued on May 7, 2008
has been withdrawn. The company is not publishing a new forecast for the
current year as a result of the current insecurities on the market.
However, the STEICO Group believes that revenue growth will continue to be
stable and in line with the market.

The STEICO Group's successful strategic development will be overshadowed by
a difficult market in the current fiscal year. The underlying conditions
for energy-efficient, ecological construction products continue to be
exceptionally positive. As a result, the Managing Board believes that the
current period of weakness is a temporary dip in growth, and it intends to
further drive its expansion strategy.

In addition, the management is continuing to focus on sustainably improving
profitability. In addition to the staff changes in the Polish subsidiary's
Managing Board that have already been put in place, a broadscale
restructuring program aims to boost the STEICO Group's earnings.

On June 30, 2006, the STEICO Group had cash and cash equivalents totaling
EUR 20.8 million and an excellent equity ratio of 65.6%.




Company profile:
The STEICO Group develops, produces and sells ecological construction
products made of renewable materials. STEICO leads the European market for
wood-fiber insulation materials with a market share of more than 40%.
STEICO is positioned as a system provider for ecological wood construction.
The company's product range includes wood-fiber insulation materials,
hemp-based products and I-joists as construction elements. The production
of natural fiber boards (NFB) rounds off the company's vertical integration
and extensive product range - which is unique in the industry. The
Munich-based company's products are successfully used in home building for
floors, walls, ceilings and roofs.
STEICO's products enable the construction of future-proof, healthy
buildings which offer a particularly high quality of living. STEICO's
products offer reliable protection from cold, heat and noise and also
improve the climate within the house. The products' ecological and
functional quality is guaranteed by the independent natureplus®
certification. In addition, STEICO's wood-fiber insulation materials have
been honored with the FSC® certificate (Forest Stewardship Council) for
exemplary environmental protection.
The STEICO Group has competitive advantages such as production and sales
expertise, three large, fully integrated production facilities close to key
markets, international sales and a well-established brand.
The business model offers major opportunities. This is due to factors
including the potential that STEICO's products offer to save energy and to
improve the quality of living. The strong growth in environmental and
health consciousness as well as state subsidization programs for
environmentally friendly construction are regarded as being long-term
drivers for the market for ecological construction products. The STEICO
Group supplies around 400 customers throughout Europe via the wood and
construction materials trade, wood construction, construction materials
retailers, the prefab home and laminated flooring industries, DIY stores
and logistics partners for international DIY stores.
Its strategic planning focuses on developing new products, growing market
shares and increasing internationalization. The funds from the IPO in June
2007 have enabled the company to further bolster the Group's solid
foundations and also to secure its long-term growth.



Contact:
Andreas Schulze
STEICO Aktiengesellschaft
Hans-Riedl-Strasse 21
85622 Feldkirchen
Fon: +49-(0)89-99 15 51-48
Fax: +49-(0)89-99 15 51-97
E-Mail: schulze@steico.com
www.steico.com



DGAP 18.09.2008 
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Language:     English
Issuer:       STEICO Aktiengesellschaft
              Hans-Riedl-Str. 21
              85622 Feldkirchen
              Deutschland
Phone:        +49 - (0)89 - 99 15 51 - 0
Fax:          +49 - (0)89 - 99 15 51 - 99
E-mail:       info@steico.com
Internet:     http://www.steico.com
ISIN:         DE000A0LR936
WKN:          A0LR93
Listed:       Freiverkehr in Berlin, Düsseldorf, München; Entry Standard in
              Frankfurt
End of News                                     DGAP News-Service
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