EANS-News: Salzgitter AG
First Half of 2011: Positive trend holds steady in
the second quarter, delivering an increase in profit
--------------------------------------------------------------------------------
Corporate news transmitted by euro adhoc. The issuer/originator is solely
responsible for the content of this announcement.
--------------------------------------------------------------------------------
6-month report
Salzgitter (euro adhoc) - The business activities of the Salzgitter Group
developed well overall in the first half of 2011, benefiting from the favourable
economic environment and the consistent implementation of measures to improve
profit and streamline operations.
All divisions contributed to raising consolidated external sales by 18 % to EUR
4,773.5 million (first half of 2010: EUR 4,034.2 million), especially Steel and
Trading. The pre-tax profit achieved was again presentable at EUR 130.0 million
(first half of 2010: EUR -5.1 million). This result includes a contribution of
EUR 46.5 million from the stake in Aurubis AG, a company included at equity
(first half of 2010: EUR 22.0 million). Profit after tax came to EUR 93.7
million (first half of 2010: EUR -3.5 million). Following the now virtual
completion of the extensive investment program, the financial basis of the Group
- with an equity ratio of 44 % and a net cash position of EUR 951 million - is
exceptionally sound.
External sales by Division (EUR million):
H1 2011 (H1 2010)
Steel 1,367.0 (1,081.6)
Trading 1,737.3 (1,409.2)
Tubes 903.2 (892.0)
Services 238.7 (195.3)
Technology 485.7 (429.7)
Other 41.8 (26.4)
Group 4,773.5 (4,034.2)
Earnings before tax (EBT) by Division (EUR million):
H1 2011 (H1 2010)
Steel 30.4 (-76.2)
Trading 38.2 (43.4)
Tubes 46.7 (13.1)
Services 8.3 (11.4)
Technology -17.7 (-15.7)
Other/Consolidation 24.1 (18.9)
Group 130.0 (-5.1)
The short contractual cycle, the persistently high volatility of procurement and
selling prices and the uncertainty surrounding economic framework conditions
continue to hamper planning accuracy, both in the individual divisions and at
the level of the entire Group. Against the backdrop of the acceptable
constitution in the flat steel and plate markets, coupled with the turnaround
achieved in the precision tubes segment, we anticipate that, from today's
standpoint, the pre-tax profit of the Salzgitter Group will come to around EUR
200 million in the financial year 2011 as a whole.
As in recent years, we make special reference to the fact that opportunities and
risks from currently unforeseeable trends in selling prices, input materials and
capacity utilization developments, as well as changes in the currency parity,
may still affect performance considerably over the course of the financial year
2011. 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, given the sale of around 6
million tons of steel products by the Steel, Trading and Tubes divisions in the
second half of the financial year, an average EUR 25 contraction in the margin
per ton is sufficient to cause a variation in the annual result of more than EUR
150 million.
Disclaimer:
Some of the statements made in this report possess the character of forecasts or
may be interpreted as such. They are made to the best of knowledge and belief,
and by their nature are subject to the proviso that no unforeseeable
deterioration occurs in the economy or in the specific market conditions
pertaining to the companies of the various divisions, but rather that the
underlying bases of plans and outlooks prove to be accurate as expected in terms
of their scope and timing. The company undertakes no obligation to update any
forward-looking statements.
Further inquiry note:
Bernhard Kleinermann
+49 (0) 5341/21-1852
ir@salzgitter-ag.de
end of announcement euro adhoc
--------------------------------------------------------------------------------
company: Salzgitter AG
Eisenhüttenstraße 99
D-38239 Salzgitter
phone: +49 (0) 5341-21-3783
mail: info@salzgitter-ag.de
WWW: http://www.salzgitter-ag.de
sector: Iron & Steel
ISIN: DE0006202005
indexes: Midcap Market Index, MDAX, CDAX, Classic All Share, Prime All Share
stockmarkets: regulated dealing/prime standard: Frankfurt, free trade: Berlin,
Hamburg, Stuttgart, Düsseldorf, Hannover, München
language: English
Original content of: Salzgitter AG, transmitted by news aktuell