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Salzgitter AG — Earnings Release 2013
Nov 14, 2013
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Earnings Release
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Corporate | 14 November 2013 07:30
Salzgitter AG: first nine months of 2013 – The Salzgitter Group comes through the economic trough in the third quarter – rigorous implementation of the ‘Salzgitter AG 2015’ project
Salzgitter AG / Key word(s): Quarter Results
14.11.2013 / 07:30
In the first nine months of 2013 the business activities of the Salzgitter Group were burdened by the structural crisis in the European steel industry, reflected by persistently fierce price-led competition. The resulting unsatisfactory performance of the Steel Division was also determined by impairment and an unexpectedly high outlay for repair work on a blast furnace. At the same time, the large-diameter pipes business continued to suffer from a severe order shortfall. The prevailing unfavorable general conditions underscore the necessity of the extensive ‘Salzgitter AG 2015’ restructuring program with a profit potential totaling more than EUR 200 million p.a. The program is being vigorously implemented on the basis of the prerequisites that were set in place at group level during the third quarter.
The Salzgitter Group’s external sales declined by 10 % to EUR 7,246.7 million (first nine months of 2012: EUR 8,015.1 million) mainly due to lower rolled steel selling prices. Earnings before taxes stood at EUR -363.0 million (first nine months of 2012: EUR -42.6 million). This figure includes EUR 185.0 million in impairment in the sections product segment, as well as EUR 45.9 million (first nine months of 2012: EUR +44.6 million) in negative after-tax contribution by the 25 % holding in Aurubis AG, a participation included at equity. Based on an after-tax result of EUR -382.2 million (first nine months of 2012: EUR -48.2 million), basic earnings per share amount to EUR -7.12 (first nine months of 2012: EUR -0.95) and return on capital employed (ROCE) stood at -10.8 % (first nine months of 2012: 0.0 %).
External sales by Division (EUR million):
| 9M 2013 | 9M 2012 | |
| Steel | 1,853.6 | (2,037.6) |
| Trading | 3,101.4 | (3,659.0) |
| Tubes | 1,137.8 | (1,164.7) |
| Services | 302.3 | (313.3) |
| Technology | 826.6 | (813.0) |
| Other | 25.0 | (27.5) |
| Group | 7,246.7 | (8,015.1) |
Earnings before tax (EBT) by Division (EUR million):
| 9M 2013 | 9M 2012 | |
| Steel | -330.0 | (-149.8) |
| Trading | 23.5 | (42.0) |
| Tubes | -43.8 | (17.2) |
| Services | 3.7 | (12.5) |
| Technology | 5.9 | (0.8) |
| Other | -22.4 | (34.8) |
| Group | -363.0 | (-42.6) |
There are growing signs in Europe of an emerging economic recovery. Owing to the considerable imbalance between supply and demand, however, this development is as yet unable to have an effect on the situation in the steel industry. For this reason as well, the implementation of the internal project to safeguard the medium to long-term competitiveness of the Group under the ‘Salzgitter AG 2015’ restructuring program has been given the highest priority.
The Salzgitter Group affirms its guidance for the financial year 2013 of lower sales year on year and a negative pre-tax result in the EUR 400 million range. As already announced, additional special, initially burdening, non-recurrent effects may still arise as a consequence of implementing the ‘Salzgitter AG 2015’ Group project.
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 2013. Additional positive or negative effects may arise from structural or methodological changes. This includes in particular measurement pursuant to IFRS standards and their application. The resulting fluctuation in the consolidated pre-tax result may be within a considerable range, either to the positive or to the negative.
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 situation pertaining to the division companies, but rather that the underlying bases of plans and outlooks prove to be accurate as expected in terms of their scope and timing. Notwithstanding prevailing statutory provisions and capital market law in particular, the company undertakes no obligation to continuously update any forward-looking statements that are made solely in connection with circumstances prevailing on the day of their publication.
Contact:
Markus Heidler
Head of Investor Relations
Salzgitter AG
Eisenhüttenstraße 99
38239 Salzgitter
Phone +49 5341 21-6105
Fax +49 5341 21-2570
E-Mail [email protected]
End of Corporate News
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| Language: | English |
| Company: | Salzgitter AG |
| Eisenhüttenstraße 99 | |
| 38239 Salzgitter | |
| Germany | |
| Phone: | +49 5341 21-01 |
| Fax: | +49 5341 21-2727 |
| E-mail: | [email protected] |
| Internet: | www.salzgitter-ag.de |
| ISIN: | DE0006202005 |
| WKN: | 620200 |
| Listed: | Regulierter Markt in Frankfurt (Prime Standard), Hannover; Freiverkehr in Berlin, Düsseldorf, Hamburg, München, Stuttgart |
| End of News | DGAP News-Service |
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