euro adhoc: Salzgitter AG
Annual Reports
SALZGITTER AG - Key data
for financial year 2003 (E)
Disclosure announcement transmitted by euro adhoc. The issuer is responsible for the content of this announcement.
Back on an upward trend with over EUR 40 million profit
The Salzgitter Group ended the financial year 2003 with a generally satisfactory result.
Consolidated external sales increased to EUR 4.8 billion (2002: EUR 4.7 billion). Earnings before taxes (EBT) amounted to EUR 42.5 million. Included in the present consolidated financial statements are balance sheet support measures at the Processing Division in the order of EUR 25 million. A one-off pro rata charge of EUR 24 million resulting from the closure of a plant in the Tubes Division was mainly offset by drawing on reserves set aside by Mannesmannröhren-Werke AG to cover such risks.
The proportion of net annual income accrued to Salzgitter AG shareholders amounts to EUR 31.8 million (previous year: EUR 64.4 million). The return on capital employed (ROCE) came in at 4.6% (2002: 7.3%).
The Steel Division contributed EUR 1.4 billion to external Group sales (2002: EUR 1.4 billion). Earnings before taxes increased to EUR 46.9 million (2002: EUR -23.5 million) and include a profit of EUR 14 million from the reduction in a shareholding. While the situation regarding flat rolled products and plate improved consistently over the course of the year, record high prices for scrap prevented a return to profitability in the beams business.
External sales at the Tubes Division decreased to EUR 0.9 billion (2002: EUR 1.1 billion). The principal companies in the Division recorded signs of a mild recovery in the second half of 2003. Nevertheless the pre-tax profit of EUR 2.6 million failed to match the previous year's excellent result (2002: EUR 76.8 million). The Trading Division sales rose to EUR 2.0 billion (2002: EUR 1.7 billion). The Division posted earnings of EUR 13.1 million before taxes (2002: EUR 8.2 million).
The Services Division generated external sales valued at EUR 241 million and pre-tax profits of EUR 13.7 million (2002: EUR 8.3 million).
With external sales of EUR 221 million, the Processing Division achieved a break-even result of EUR 0.1 million (2002: EUR 8.0 million) with the support of a waiver of trade receivables by the group.
The loss from consolidation and other items amounted to EUR -34.0 million (2002: EUR -5.3 million) and was mainly caused by the waiver of trade receivables against Hoesch Spundwand und Profil GmbH and Salzgitter Bauelemente GmbH.
The annual financial statements will be presented to the Supervisory Board for approval at its next meeting and the full version will be published on April 15, 2004.
The outlook for the coming months in the current financial year appears to be comparatively positive. The price increases announced for flat rolled products were successfully implemented. In the beams segment, a "scrap surcharge" has been established. Further price rises for all rolled steel products cannot be ruled out in the second half of the year.
Recovery is also continuing in the Tubes business. After an increase in demand in the second half of last year had already begun, a positive trend in sales prices is now also apparent.
At the Trading Division, the situation is divided: While the domestic stockholding business is experiencing a modest recovery at best, international demand has reached an advanced level.
Business at the Services Division can be expected to remain consistently positive. With the automotive and construction industries both being in stagnation, the Processing Division companies do not anticipate any notable stimulus in the coming months.
Additional details are available in todays press release. For further information, please contact Investor or Public Relations.
end of announcement euro adhoc 11.03.2004
Further inquiry note:
Bernhard Kleinermann
Tel.: +49 (0) 5341-21-3783
E-Mail: kleinermann.b@salzgitter-ag.de
Branche: Iron & Steel
ISIN: DE0006202005
WKN: 620200
Index: CDAX, HDAX, MDAX, Prime Standard
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