DGAP-News

Salzgitter AG: Salzgitter Group posts a positive result in the first nine months of 2015

DGAP-News: Salzgitter AG / Key word(s): 9-month figures
Salzgitter AG: Salzgitter Group posts a positive result in the first
nine months of 2015

12.11.2015 / 07:30

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Salzgitter Group posts a positive result in the first nine months of 2015

- Substantial increase in pre-tax profit year-on-year

- All business units record an upturn in operating business

- "Salzgitter AG 2015" restructuring program as the driving force behind
the improved earnings

The Salzgitter Group has markedly increased its pre-tax profit year-on-year
in the first nine months of the financial year. Against a European steel
market impacted by sharp rises in imports and falling selling prices, this
improvement was mainly driven by the earnings effects of the groupwide
"Salzgitter AG 2015" restructuring program. The result contains a total of
EUR 77.1 million in burdens stemming from the relining of a blast furnace
at the Salzgitter steelworks, which began at the end of August and is
proceeding to plan, as well as provisions for pending structural measures.
The financial basis of the Group remains very solid, with a 35 % equity
ratio as well as an increased net financial position of EUR 267 million
compared to the first half of 2015.

Mainly owing to weaker average selling prices, the Salzgitter Group's
external sales came in at EUR 6,691.7 million, which is just short of the
previous year's figure (first 9 months of 2014: EUR 6,811.5 million).
Pre-tax profit rose considerably to EUR 24.0 million (first 9 months of
2014: EUR 5.5 million). This figure includes a EUR 12.8 million negative
impact from the Aurubis investment (first 9 months of 2014: EUR +42.4
million), balance sheet provisions for structural improvement measures
worth EUR 33.1 million, as well as EUR 44.0 million expenses for the blast
furnace relining. The after-tax result stood at EUR 12.1 million (first 9
months of 2014: EUR -12.2 million), which brings basic earnings per share
to EUR 0.16 (first 9 months of 2014: EUR -0.28). The return on capital
employed (ROCE) was recorded at 2.0 % (first 9 months of 2014: 1.5 %).

External sales by business unit (EUR million):

                                          9M 2015                 (9M 2014)

Strip Steel                               1,505.6                 (1,607.9)

Plate / Section Steel                       719.0                   (845.1)

Energy                                      811.7                   (939.3)