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Corporate news transmitted by euro adhoc. The issuer/originator is solely
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quarterly report
Subtitle: Breakeven in the second quarter despite difficult market environment
Salzgitter (euro adhoc) - The Salzgitter Group's business activities in the
first half of 2012 were influenced by an environment impacted by growing
economic uncertainty. Following an upswing at the start of the year, the order
activity of many steel product customers was extremely reticent in the second
quarter. Economic sentiment appears to be poorer to date - at least in Germany -
than is justified by the actual order situation of many steel processing
sectors. Given the virtually overall satisfactory capacity utilization
situation, accompanied, however, by an unsatisfactory selling price trend, the
Group achieved another healthy breakeven in the pre-tax result in the second
quarter of the financial year 2012, having closed the preceding quarter at a
loss.
Consolidated external sales climbed to EUR 5,378.5 million, an increase of
around EUR 600 million (first half of 2011: EUR 4,773.5 million). The
significant expansion in the Trading Division's business volume was a major
influencing factor. In the first six months of 2012, the Salzgitter Group
delivered a pre-tax result of EUR -17.9 million (first half of 2011: EUR 130.0
million) and, following a difficult start to the new financial year, is now
reporting an uptrend. An amount totaling EUR 34.6 million in after-tax
contribution by Aurubis AG, a participation included at equity, is included in
the consolidated financial statements (first half of 2011: EUR 46.5 million).
The consolidated after-tax result amounts to EUR -22.5 million (first half of
2011: EUR 93.7 million). Thanks to its broad-based positioning and an unchanged
equity ratio of 43 %, as well as a net financial position of EUR 535 million,
the situation of the Salzgitter Group remains decidedly sound.
External sales by Division (EUR million):
H1 2012 (H1 2011)
Steel 1,406.8 (1,367.0)
Trading 2,398.4 (1,737.3)
Tubes 790.5 (903.2)
Services 212.2 (238.7)
Technology 548.5 (485.7)
Other 22.0 (41.8)
Group 5,378.5 (4,773.5)
Earnings before tax (EBT) by Division (EUR million):
H1 2012 (H1 2011)
Steel -97.8 (30.4)
Trading 27.6 (38.2)
Tubes 8.3 (46.7)
Services 10.2 (8.3)
Technology 2.6 (-17.7)
Other/Consolidation 31.1 (24.1)
Group -17.9 (130.0)
The uncertainty triggered by the sovereign debt crisis in a number of euro
countries continues to exert massive pressure on the economic climate. Several
key ratios in the industry, however, support the supposition that the outlook
for a number of sub-sectors of the economy is still better than the current
sentiment would suggest. We continue to anticipate stable sales at min-imum and
a positive pre-tax result for the Salzgitter Group. This is likely to be in the
lower- to mid-double-digit million euro range.
As in recent years, we make reference to the fact that opportunities and risks
from currently unforeseeable trends in selling prices, input material prices 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 6 million tons of
steel products sold by the Steel, Trading and Tubes divisions in the second half
of the financial 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 120
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:
Bernhard Kleinermann
+49 (0) 5341/21-1852
ir@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