EQS-News

Salzgitter AG with mixed first quarter of 2024

EQS-News: Salzgitter Aktiengesellschaft / Key word(s): Quarter Results Salzgitter AG with mixed first quarter of 2024 13.05.2024 / 07:30 CET/CEST The issuer is solely responsible for the content of this announcement. Earnings before interest, taxes, depreciation and amortization (EBITDA) of € 126.4 million Steel-related activities feeling the lackluster German economy Diversification paying off – Technology Business Unit heading for a record result in 2024 In the first quarter of the financial year 2024 that was impacted by the ailing economy, the Salzgitter Group delivered earnings before interest, taxes, depreciation and amortization of € 126.4 million and a pre-tax profit of € 17.2 million. The result was mainly driven by the Technology Business Unit that delivered an extremely satisfactory quarterly result, as well as by a contribution from Aurubis AG, an investment included at equity (IFRS accounting). Conversely, the steel-related business units were burdened by Europe’s very downbeat economic trend, above all in Germany.

Due to prices declining compared with the year-earlier period, the Salzgitter Group's external sales dropped 10.2 % to € 2.68 billion (Q1 2023: € 2.98 billion). Also primarily attributable to selling prices, EBITDA (€ 126.4 million; Q1 2023: € 290.0 million) and earnings before taxes (€ 17.2 million; Q1 2023: € 183.7 million) also declined. The result includes a contribution of € 23.9 million from Aurubis AG (Q1 2023: € 29.3 million), an investment included at equity (IFRS accounting). The after-tax result came in at € 15.0 million (Q1 2023: € 140.5 million), which brings basic earnings per share to € 0.24 (Q1 2023: € 2.57). The return on capital employed (ROCE) stood at 2.6 % (Q1 2023: 12.6 %). The equity ratio posts a very sound 45.6 % (Q1 2023: 44.4 %).

 

As Gunnar Groebler, Salzgitter AG’s Chief Executive Officer, comments:

“After the two exceptional years of 2021 and 2022, we were already feeling headwind in the second half of last year. This was also reflected in the figures for the first quarter and will continue to impact the remainder of 2024. Forging ahead with measures to increase profitability and active portfolio management is therefore all the more important, as is continuing our journey toward transformation with determination. I am convinced that this journey will pave the way for a more resilient Salzgitter AG. KHS GmbH’s performance is currently a source of gratification. By far the largest company of our Technology Business Unit, it is heading for a record result this year.”