DGAP-News

Salzgitter AG - key data for the financial year 2014: 2014 earnings forecast achieved - consolidated result raised by almost EUR 500 million

DGAP-News: Salzgitter AG / Key word(s): Final Results
Salzgitter AG - key data for the financial year 2014: 2014 earnings
forecast achieved - consolidated result raised by almost EUR 500
million

27.02.2015 / 07:30

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- Strong impact on earnings by the "Salzgitter AG 2015" program

- Sound balance sheet: equity ratio of 34 %; net credit balance exceeds
EUR 400 m

- Guidance for the financial year 2015: pre-tax profit in the lower
double-digit million euro range

Against the backdrop of a challenging environment in the European steel
market, the Salzgitter Group raised its pre-tax result by almost EUR500
million in the financial year 2014 and closed - in line with the forecast -
with a result close to breakeven. The groupwide "Salzgitter AG 2015"
restructuring program made a considerable contribution to this result.
Achievements particularly noteworthy in this context included the
turnaround at Peiner Träger GmbH (PTG) and the sustained positive earnings
development achieved by the Salzgitter Mannesmann Precision Group. The
program is increasingly bearing fruit in many other Group companies as
well. A gratifying increase was reported in the cash flow from operating
activities that lifted the net financial position as of December 31, 2014
to EUR 403 million, corresponding to an improvement of one third compared
with the year-earlier reporting date. Together with an equity ratio of 34
%, Salzgitter AG enjoys a very sound balance sheet and the financial
structure.

Owing to weaker average selling prices for most steel products, the
Salzgitter Group's external sales that came in at EUR 9,040.2 million fell
marginally short of the previous year's figure (2013: EUR 9,309.8 million).
The pre-tax result rose to EUR -15.2 million, representing an increase in a
year-on-year comparison (2013: EUR -482.8 million). This figure comprises
EUR 31.2 million in profit contribution from the Aurubis investment, as
well as a balance of EUR -43.0 million largely from non-recurrent
accounting-related effects.

The after-tax result stood at EUR -31.9 million (2013: EUR -490.0 million),
which brings basic earnings per share to EUR -0.64 (2013: EUR -9.11). The
now positive return on capital employed (ROCE) rose to 1.8 % (2013: -10.5
%).

Chief Executive Officer Prof. Dr.-Ing. Heinz Jörg Fuhrmann commented as