euro adhoc: Salzgitter AG
quarterly or semiannual financial statement /
SALZGITTER AG:
Splendid development of the first nine months 2006 - Group equity increased by
64 % to more than EUR 3 billion
Disclosure announcement transmitted by euro adhoc. The issuer is responsible for the content of this announcement.
13.11.2006
In the third quarter, the Salzgitter Group set new benchmarks in sales and profit. The very pleasing performance of operations in the Steel, Tubes and Trading divisions and the high profit from the sale of the 17.2 % stake in the French seamless tubes manufacturer Vallourec S.A. contributed to this result.
Group external sales improved to EUR 6.21 billion (9 months 2005: EUR 5.38 billion). Including EUR 907.0 million from the sale of the Vallourec participation, consolidated pre-tax profit came to EUR 1.57 billion (9 months 2005: EUR 595.2 million). Operating pre-tax earnings thereby stood at EUR 661.5 million. Earnings after tax stood at EUR 1.35 billion (9 months 2005: EUR 556.3 million). Return on capital employed (ROCE) posted 54.9 %; excluding EUR 907.0 million profit from the Vallourec sale, it came to 30.8 % (9 months 2005: 36.0 %).
Consolidated Sales by Division (EUR million):
| |9M 2006 |(9M 2005) | |Steel | 1,793 | (1,634) | |Tubes | 1,161 | (1,039) | |Trading | 2,871 | (2,465) | |Services | 316 | (240) | |Others/Consolidation | 67 | (0) | |Group | 6,207 | (5,378) | Earnings before taxes by Division (EUR million): | |9M 2006 |(9M 2005) | |Steel | 301.3 | (330.6) | |Tubes | 184.3 | (240.6) | |Trading | 149.2 | (59.9) | |Services | 16.6 | (5.7) | |Others/Consolidation | 917.0 | (-41.6) | |Group |1,568.5 | (595.2) |
On the basis of the information currently available and estimates concerning trends in the procurements and sales markets, as well as the general conditions, and taking account of the effects of the profit improvement program, the Salzgitter Group's pre-tax operating profit is expected to reach approximately EUR 800 million in the current year. Including the income from the sale of the Vallourec participation, this would result in a consolidated pre-tax profit of around EUR 1.7 billion. Express reference is made to the fact that opportunities and risks arising from, for instance, currently unforeseeable developments in revenue, input material prices and capacity levels, as well as changes in the currency parity, may still affect performance in the course of the financial year 2006.
More information can be obtained from our press release and interim report for the first nine months of 2006 released on November 14 and posted on our web site under www.salzgitter-ag.de.
end of announcement euro adhoc 13.11.2006 22:27:00
Further inquiry note:
Bernhard Kleinermann
Tel.: +49 (0) 5341-21-3783
E-Mail: kleinermann.b@salzgitter-ag.de
Tel.:49 (0) 5341-21-01
FAX: +49 (0) 5341-21-2727
Email: gersdorff.b@salzgitter-ag.de
Branche: Iron & Steel
ISIN: DE0006202005
WKN: 620200
Index: MDAX, CDAX, HDAX
Börsen: Frankfurter Wertpapierbörse / official dealing/prime standard
Börse Berlin-Bremen / free trade
Hamburger Wertpapierbörse / free trade
Baden-Württembergische Wertpapierbörse / free trade
Börse Düsseldorf / free trade
Bayerische Börse / free trade
Niedersächsische Börse zu Hannover / official dealing
Original content of: Salzgitter AG, transmitted by news aktuell