Salzgitter AG, DE0006202005

Salzgitter AG, DE0006202005

13.08.2018 - 07:34:12

Salzgitter AG: Salzgitter Group achieves best half-year result since 2008

 

- Pre-tax profit almost doubles year on year

- Significant contribution of internal programs of measures

- Guidance for the full financial year 2018 affirmed

In the first half of 2018, the Salzgitter Group achieved the best result in earnings before taxes since 2008. The figure came in at EUR 198.6 million, which is almost double compared with the year-earlier period (EUR 100.2 million). Along with the strong performance of the Strip Steel Business Unit, all other segments contributed to this impressive development with positive results.

"Yet another increase in the pre-tax profit is attributable to the operating performance of the business units as well as to the Group's steady development resulting from its own endeavors. With EUR 68 million worth of additional profit improvement potential realized for the first time in 2018 from the 'FitStructure SZAG' initiative and the growth programs, the Salzgitter Group is demonstrating its ability to sustain the internal momentum initiated in 2012, also in times of a friendlier market environment. Given the currently stable but nevertheless also potentially fragile economy due to unforeseeable developments in trade policies, this is absolutely imperative," says Chief Executive Officer Prof. Dr.-Ing. Heinz Jörg Fuhrmann.

The Salzgitter Group's external sales remained unchanged compared with the year-earlier level (EUR 4,617.1 million; H1 2017: EUR 4,616.2 million). The growth in the sales of the Strip Steel Business Unit, above all on the back of selling prices, more than compensated for the decline in the Trading Business Unit. Earnings before taxes soared to EUR 198.6 million (H1 2017: EUR 100.2 million). This figure comprises EUR 25.1 million in after-tax contribution from a participating investment in Europe's leading copper producer Aurubis AG, a company included at equity (H1 2017: EUR 53.7 million). The after-tax result stood at EUR 135.4 million (H1 2017: EUR 64.7 million). Earnings per share therefore came in at EUR 2.45 (H1 2017: EUR 1.14) and return on capital employed at 12.8 % (ROCE H1 2017: 7.3 %). An equity ratio of 36.3 % and a net financial position that has risen to EUR 239.5 million (2017/06/30: EUR 24.2 million) form the basis of the Salzgitter Group's comfortable financial basis and sound balance sheet.

External sales by business unit (EUR million):

  H1 2018 H1 2017 Strip Steel 1,242.7 1,102.2 Plate / Section Steel 554.5 537.6 Mannesmann 563.4 569.3 Trading 1,548.8 1,675.7 Technology 610.0 630.1 Industrial Participations / Consolidation 97.6 101.2 Group 4,617.1 4,616.2  

Earnings before taxes (EBT) by business unit (EUR million):

  H1 2018 H1 2017 Strip Steel 109.7 94.2 Plate / Section Steel 22.0 5.7 Mannesmann 12.3 - 2.7 Trading 25.0 34.6 Technology 20.5 13.6 Industrial Participations / Consolidation 9.1 - 45.1 Group 198.6 100.2  

Outlook

Against the backdrop of uncertainty from trade policies and their possible impact, Salzgitter AG is leaving its guidance for the financial year 2018 unchanged - notwithstanding the currently positive situation of our key sales markets - and continues to anticipate

- a slight increase in sales to above the EUR 9 billion mark,

- a pre-tax profit of between EUR 250 million and EUR 300 million and

- a return on capital employed that is stable compared the previous year's figure.

The complete report released on the results of the first half of 2018 can be viewed at: https://www.salzgitter-ag.com/en/investor-relations/news-and-publications.html

We make explicit reference to the fact that imponderables, including changes in the cost of raw materials, precious metal prices and exchange rates, may have a considerable impact over the course of the financial year 2018. The resulting fluctuation in the consolidated pre-tax result may be within a considerable range, either to the positive or to the negative. The dimensions of this range become clear if one considers that, with around 12 million tons p.a. of steel products sold by the Strip Steel, Plate / Section Steel, Mannesmann and Trading business units, an average EUR 25 change in the margin per ton is sufficient to cause a variation in the annual result of more than EUR 300 million. Moreover, the accuracy of the company's planning is restricted by the volatile cost of raw materials.

Disclaimer: Some of the statements made in this report possess the character of forecasts or may be interpreted as such. These are made to the best of the Company's knowledge and judgment, and by their nature are subject to the proviso that no unforeseeable deterioration occurs in the economy or in the specific market situation pertaining to the business units' companies, but rather that the underlying bases of plans and outlooks prove to be accurate as expected with regards to their scope and timing. Notwithstanding prevailing statutory provisions and capital market law in particular, the Company accepts no obligation to continuously update any forward-looking statements that are made solely in connection with circumstances prevailing on the day of their publication.

Contact: Markus Heidler Head of Investor Relations Salzgitter AG Eisenhüttenstraße 99 38239 Salzgitter Phone +49 5341 21-6105 Fax +49 5341 21-2570 E-Mail ir@salzgitter-ag.de

13.08.2018 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.The issuer is solely responsible for the content of this announcement.The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.de

Language: English Company: Salzgitter AG Eisenhüttenstraße 99 38239 Salzgitter

Germany Phone: +49 5341 21-01 Fax: +49 5341 21-2727 E-mail: info@salzgitter-ag.de Internet: www.salzgitter-ag.de ISIN: DE0006202005 WKN: 620200 Indices: MDAX Listed: Regulated Market in Frankfurt (Prime Standard), Hanover; Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate Exchange   End of News DGAP News Service

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