EANS-News: SALZGITTER AG - Nine Months 2010: Salzgitter Group back in the profit zone
Salzgitter (euro adhoc) -
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9-month report
SALZGITTER AG - Nine Months 2010
Salzgitter Group back in the profit zone
The wide-ranging business activities of the Salzgitter Group have reaped tangible benefit from the general economic recovery over the course of the first nine months of the financial year 2010. Although the Group had to absorb the surging costs of raw materials and burdens from currency-induced valuations, it closed the third quarter as well with a profit. The Steel, Trading, Tubes and Services divisions all made positive contributions to this result, along with the Technology Division which delivered a near-breakeven result. In line with expectations, the Group thus generated a pre-tax profit in the first nine months of the financial year 2010.
Consolidated external sales of the Group came in at EUR 6,192.6 million (first nine months of 2009: EUR 5,960.3 million), which is around 4 % above the previous year's figure. Pre-tax profit rose by EUR 267 million to EUR 5.7 million (first nine months of 2009: EUR -261.3 million). This figure already includes EUR 26.3 million for streamlining measures, EUR 30.0 million in negative effects from the reporting date-related valuation of the US dollar, and EUR 19.9 million in out-of-period income. Profit after tax stood at EUR 3.9 million (first nine months of 2009: EUR -232.1 million). Return on capital employed (ROCE) came to an annualized 0.8 % (first nine months of 2009: -7.3 %).
External sales by Division (EUR million):
9M 2010 (9M 2009) Steel 1,672.4 (1,231.1) Trading 2,230.5 (2,397.3) Tubes 1,304.0 (1,541.6) Services 301.7 (224.7) Technology 645.5 (531.6) Others 38.5 (33.9) Group 6,192.6 (5,960.3)
Earnings before tax (EBT) by Division (EUR million):
9M 2010 (9M 2009) Steel -67.6 (-213.4) Trading 63.9 (-90.5) Tubes 17.7 (121.7) Services 18.8 (-1.7) Technology -21.0 (-75.5) Others -6.1 (-1.9) Group 5.7 (-261.3)
Having considered all currently discernible risks and potential, we believe that a pre-tax result in the lower double-digit million range is achievable in the current financial year.
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 and metal prices, may still affect the annual accounts of the financial year 2010. Additional positive or negative effects may emanate from changes of a structural and methodological nature, especially, for instance, measurement under IFRS standards and their treatment. The resulting fluctuation in the consolidated pre-tax result may be within a considerable range, either to the positive or to the negative.
More information can be found in the full press release and interim report published today (please refer to: www.salzgitter-ag.de).
Disclaimer: Some of the statements made in this report possess the character of forecasts or may be interpreted as such. They are made upon the best of information 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.
end of announcement euro adhoc
Further inquiry note:
Markus Heidler
+49 (0) 5341/21-6105
heidler.m@salzgitter-ag.de
Branche: Iron & Steel
ISIN: DE0006202005
WKN: 620200
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