EANS-News: SALZGITTER AG - First Quarter of 2012;
Uptrend follows on from a difficult start
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quarterly report
Salzgitter (euro adhoc) - In the first quarter of 2012, the Salzgitter Group
reported notably expanded its business activities in virtually all of its
operations. The first successful impact of implementing the profit improvement
and restructuring program in the KHS Group was reflected in the profit generated
by the Technology Division in the first quarter. The measures introduced at
Peiner Träger GmbH also led to a substantial improvement in the results. This
was nonetheless unable to compensate the effects of a sharp downturn in the
average selling prices of many steel products at the end of 2011, as well as the
temporary gap in capacity utilization in the large-diameter tubes segment. As a
result, the Group closed the first quarter of 2012 with a slightly negative
pre-tax result.
Consolidated external sales rose by more than EUR 300 million to EUR 2,614.8
million (first quarter of 2011: EUR 2,307.6 million), which was primarily
attributable to the significant increase in the business volume of the Trading
Division. Earnings before tax came to EUR -19.6 million in the first quarter of
2012 (first quarter of 2011: EUR 56.3 million). The result includes EUR 28.0
million (first quarter of 2011: EUR 29.0 million) in after-tax profit from
Aurubis AG (NAAG), a shareholding included at equity. Based on this figure, the
result after tax amounts to EUR -15.5 million (first quarter of 2011: EUR 44.0
million). As before, an equity ratio of 43 % and a net financial position of
EUR 642 million constitute an extremely sound basis for the entrepreneurial
activities of Salzgitter AG.
External sales by Division (EUR million):
Q1 2012 (Q1 2011)
Steel 724.8 (698.4)
Trading 1,103.9 (782.3)
Tubes 389.0 (445.2)
Services 108.4 (119.5)
Technology 280.1 (242.9)
Other 8.6 (19.2)
Group 2,614.8 (2,307.6)
Earnings before tax (EBT) by Division (EUR million):
Q1 2012 (Q1 2011)
Steel -51.6 (9.4)
Trading 11.5 (23.3)
Tubes -9.6 (14.7)
Services 6.2 (5.0)
Technology 2.5 (-8.3)
Other/Consolidation 21.4 (12.2)
Group -19.6 (56.3)
The widely feared escalation in Europe's debt crisis has not materialized so
far. This nonetheless poses a huge risk on a global scale. Assuming, however,
that no major economic slumps will occur in the period covered by guidance, we
still anticipate that the Salzgitter Group's sales will remain stable at
minimum, and that a positive earnings before tax can be delivered in 2012. Given
the difficult first quarter, it will be a challenge to achieve the year-earlier
result.
As in recent years, we make reference to the fact that opportunities and risks
from currently unforeseeable trends in selling prices, input materials and
capacity level developments, as well as changes in the currency parity, may
considerably affect performance in the course of the financial year 2012. The
resulting fluctuation in the consolidated pre-tax result may be within a
considerable range, either to the positive or to the negative. The dimensions of
this range become clear if one considers that, with around 9 million tons of
steel products to be sold by the Steel, Trading and Tubes divisions over the
remainder of the year, an average EUR 20 contraction in the margin per ton is
sufficient to cause a variation in the annual result of more than EUR 180
million. Moreover, the accuracy of the company's planning is restricted by the
volatilities and shorter contractual durations, both on the procurement and on
the sales side.
Disclaimer:
Some of the statements made in this report possess the character of forecasts or
may be interpreted as such. They are made to the best of knowledge and belief,
and by their nature are subject to the proviso that no unforeseeable
deterioration occurs in the economy or in the specific market conditions
pertaining to the companies of the various divisions, but rather that the
underlying bases of plans and outlooks prove to be accurate as expected in terms
of their scope and timing. The company undertakes no obligation to update any
forward-looking statements.
Further inquiry note:
Markus Heidler
Deputy Head of Investor Relations
+49 (0) 5341/21-6105
heidler.m@salzgitter-ag.de
end of announcement euro adhoc
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company: Salzgitter AG
Eisenhüttenstraße 99
D-38239 Salzgitter
phone: +49 (0) 5341-21-3783
mail: info@salzgitter-ag.de
WWW: http://www.salzgitter-ag.de
sector: Iron & Steel
ISIN: DE0006202005
indexes: Midcap Market Index, MDAX, CDAX, Classic All Share, Prime All Share
stockmarkets: free trade: Hannover, Berlin, München, Hamburg, Düsseldorf,
Stuttgart, regulated dealing/prime standard: Frankfurt
language: English