EANS-News: The Salzgitter Group reports sound profit trend in the current financial year
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9-month report
Salzgitter (euro adhoc) - The Salzgitter Group achieved a considerable increase
in its profit in the third quarter of 2011 compared with the year-earlier
period. Its presentable performance in the first nine months of the current
financial year was due first and foremost to the generally favorable economic
environment for rolled steel and tubes products.
The Group's external sales rose 18 % to EUR 7,331.4 million (9 Months 2010: EUR
6,192.6 million). This development was mainly borne by the brisk activities of
the Steel, Trading and Technology divisions. As a result, earnings before tax
climbed steeply to EUR 169.1 million (9 Months 2010: EUR 5.7 million). This
figure comprises EUR 52.9 million in profit contribution from the participation
in Aurubis AG which is included at equity (9 Months 2010: EUR 31.8 million). The
result after tax stood at EUR 114.7 million (9 Months 2010: EUR 3.9 million).
Return on capital employed (ROCE) came to 5.8 % (9 Months 2010: 0.8 %).
External sales by Division (EUR million):
9M 2011 (9M 2010)
Steel 2,071.4 (1,672.4)
Trading 2,810.6 (2,230.5)
Tubes 1,299.6 (1,304.0)
Services 355.7 (301.7)
Technology 728.4 (645.5)
Other 65.6 (38.5)
Group 7,331.4 (4,034.2)
Earnings before tax (EBT) by Division (EUR million):
9M 2011 (9M 2010)
Steel 35.9 (-67.6)
Trading 53.3 (63.9)
Tubes 59.3 (17.7)
Services 14.6 (18.8)
Technology -36.5 (-21.0)
Other/Consolidation 42.5 (-6.1)
Group 169.1 (5.7)
The euro crisis has resulted in greater macroeconomic risks since the summer.
Demand in many product segments is nonetheless comfortable, albeit at a more
modest level. Taking ac-count of new orders placed in recent weeks, which give
rise to cautious optimism, we affirm our forecast for the Salzgitter Group's
earnings before tax of around EUR 200 million in the financial year 2011.
As in previous years, we make special reference to the fact that opportunities
and risks from unforeseeable trends in selling prices, input materials and
capacity utilization developments, as well as changes in currency parities and
metal prices, may still affect performance considerably in the financial year
2011. Additional positive or negative effects may also emanate from structural
or methodological changes, which specifically includes valuation methods
de-fined under IFRS standards and their treatment. The resulting fluctuations in
consolidated earnings before tax maybe within a considerable range, either to
the positive or negative.
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:
Markus Heidler
+49 (0) 5341/21-6105
heidler.m@salzgitter-ag.de
end of announcement euro adhoc
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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