DGAP-News

Salzgitter Aktiengesellschaft: Encouraging start to the year

DGAP-News: Salzgitter Aktiengesellschaft / Key word(s): Quarter Results Salzgitter Aktiengesellschaft: Encouraging start to the year 12.05.2021 / 07:30 The issuer is solely responsible for the content of this announcement. - Pre-tax profit of € 117.3 million in the first quarter - Steady increase in the monthly results across almost all segments - Earnings forecast revised upward: profit before taxes of between € 300 million and € 400 million - SALCOS(R): consistently forging ahead as a pioneer of low CO2 steel production

The Salzgitter Group generated earnings before taxes of € 117.3 million in the first quarter of the financial year 2021. Against the backdrop of a sustained recovery in the market and an uptrend in steel prices, this performance was especially attributable to the gratifying results of the Strip Steel and Trading business units, as well as a contribution of € 42.5 million from Aurubis AG, a participating investment included at equity (IFRS accounting) (Q1 2020: € -18.7 million). Almost all segments reported a steady increase in their monthly results over the course of the quarter.

The Salzgitter Group's external sales remained stable compared with the year-earlier level (€ 2,094.1 million; Q1 2020: € 2,108.3 million). Earnings before taxes came in at € 117.3 million (Q1 2020: € -31.4 million). An after-tax result that stood at € 76.6 million (Q1 2020: € -43.7 million) brings earnings per share to € 1.38 (Q1 2020: € -0.83) and return on capital employed to 13.2 % (Q1 2020: -2.4 %). The equity ratio amounted to 33.0 % (Q1 2020: 35.3 %). In addition, - compared with the respective costs of procurement - the hidden reserves not evident from the balance sheet from the acquisition of our participating investment in Aurubis AG and the CO₂ allowances purchased as a precautionary measure for the fourth period of the EU greenhouse gas emission trading scheme that commenced on January 1, 2021, meanwhile amount to over one billion euros.