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Salzgitter AG: Half-yearly result burdened by structural crisis in the European steel industry - 'Salzgitter AG 2015' generates profit potential of EUR 200 million p.a.

DGAP-News: Salzgitter AG / Key word(s): Half Year Results
Salzgitter AG: Half-yearly result burdened by structural crisis in the
European steel industry - 'Salzgitter AG 2015' generates profit
potential of EUR 200 million p.a.

14.08.2013 / 07:30

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In the first half of 2013, the performance of the Salzgitter Group was
largely determined by the structural crisis in the European steel industry.
Severe competition resulting from the ongoing capacity underutilization of
numerous producers in southern Europe pushed the selling prices achievable
for most rolled steel products below the manufacturing costs. The sectional
steel products processed by the construction industry were the hardest hit.
Against this backdrop, the Steel Division reported a high loss owing
primarily to impairment of the assets of Peiner Träger GmbH (PTG). This
impairment had become necessary due to the persistently unsatisfactory
earnings outlook of the section business. Additional profit burdens
emanated from the dramatic lack of orders in the Tubes Division's
large-diameter pipes business.

Consolidated external sales fell by 7 % to EUR 4,977.3 million (first half
of 2012: EUR 5,378.5 million), which was mainly attributable to the
unfavorable selling price trend for rolled steel products. The pre-tax
result of EUR -298.7 million (first half of 2012: EUR -17.9 million)
comprises impairment of EUR 185.0 million on the assets of PTG, as well as
EUR 54.2 million in negative after-tax contribution by the 25% holding in
Aurubis AG, a participation included at equity (first half of 2012: EUR
+34.6 million). The after-tax result stood at EUR -315.2 million (first
half of 2012: EUR -22.5 million). As before, an equity ratio of 39% and net
financial position of EUR 375 million continues to form a thoroughly sound
financial basis for mastering the current challenges.

External sales by Division (EUR million):

                                  H1 2013                        (H1 2012)





Steel                             1,334.4                        (1,406.8)



Trading                           2,031.5                        (2,398.4)



Tubes                               820.7                          (790.5)



Services                            204.4                          (212.2)



Technology                          568.4                          (548.5)



Other                                18.0                           (22.0)



Group                             4,977.3                        (5,378.5)