AI assistant
Salzgitter AG — Earnings Release 2014
Aug 13, 2014
364_rns_2014-08-13_6fad5d6c-892a-47c2-a1f1-71dfb58236a8.html
Earnings Release
Open in viewerOpens in your device viewer
News Details
Corporate | 13 August 2014 07:30
Salzgitter AG: Salzgitter Group reports significantly improved year-on-year result
Salzgitter AG / Key word(s): Half Year Results
13.08.2014 / 07:30
SALZGITTER AG – first half of 2014
Salzgitter Group reports significantly improved year-on-year result
– “Salzgitter AG 2015” making good headway
– New, lean Group organization structure bearing fruit
– Earnings guidance for the financial year 2014 affirmed
The Salzgitter Group closed the first half of 2014 with a significant year-on-year improvement in its pre-tax result approximating breakeven. The effects of the “Salzgitter AG 2015” restructuring program in line with planning across all business units was the main contributing factor, along with the gratifying contribution from the Aurubis investment. With a stronger net financial position (EUR 156 million) compared with the previous quarter and an equity ratio of an approximate and unchanged 38 %, Salzgitter AG enjoys a sound financial basis.
In the period under review, conditions in the steel market remained difficult overall, as the pressure on the selling prices of most rolled steel products continued unabated due to the persistent capacity surplus in Europe, combined with a downtrend in raw material costs. Owing principally to the largely volume-induced decline in the contributions of the Trading Business Unit, consolidated external sales decreased by 9 % to EUR 4,549.3 million in the first half of 2014 (first half of 2013: EUR 4,973.0 million). The pre-tax result, which stood at -EUR 4.2 million, nevertheless advanced notably in comparison with the year-earlier figure that was impacted by non-recurrent effects amounting to EUR 185.0 million (first half of 2013: EUR -300.8 million). The accounts include EUR 39.2 million in income from the Aurubis investment. The consolidated after-tax result posted at EUR -15.9 million (2013: EUR -315.7 million), which brings earnings per share to EUR -0.33 (first half of 2013: EUR -5.87) and delivers a positive return on capital employed of 1.1 % again (first half of 2013: -13.2 %). When considering the year-on-year comparisons, it should be noted that the key data of the financial year 2013 have been restated to take account of the new Group organization structure and changes in the consolidation methods applied to participating interests under IFRS 11.
External sales by business unit (EUR million):
| H1 2014 | (H1 2013 restated) |
|
| Strip Steel | 1,095.6 | (1,047.6) |
| Plate/Stection Steel | 556.5 | (596.1) |
| Energy | 651.0 | (698.9) |
| Trading | 1,560.0 | (1,963.3) |
| Technology | 592.8 | (566.3) |
| Industrial Participations/Consolidation | 93.2 | (100.8) |
| Group | 4,549.3 | (4,973.0) |
Earnings before taxes (EBT) by business unit (EUR million):
| H1 2014 | (H1 2013 restated) |
|
| Strip Steel | – 6.9 | (- 15.5) |
| Plate/Stection Steel | – 42.6 | (- 265.5) |
| Energy | – 19.8 | (- 14.1) |
| Trading | 7.0 | (22.0) |
| Technology | 11.5 | (4.6) |
| Industrial Participations/Consolidation | 46.6 | (- 32.4) |
| Group | – 4.2 | (- 300.8) |
The following guidance was compiled on the basis of the new Group organization structure that took effect on January 1, 2014. Guidance on the development of the macroeconomic situation is already fundamentally subject to a great deal of uncertainty, particularly in the current environment prevailing in Europe. The forward-looking statements below on the individual business units assume the absence of renewed recessionary development in Europe.
Based on planning by the individual business units, and taking account of notable successes from measures as well as structural improvements from the “Salzgitter AG 2015” groupwide program, the Salzgitter Group affirms its guidance to date for the year. We anticipate the following in 2014:
– sales of almost EUR 10 billion,
– a significant increase in the pre-tax result, approaching breakeven, compared with the financial year 2013 and
– another moderately positive return on capital employed.
Additional information can be found in the full press release and the financial report published today ( www.salzgitter-ag.com/en ).
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 2014. The resulting fluctuation in the consolidated pre-tax result may, as current events show, 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 12 million tons of steel products sold by the Strip Steel, Plate/Section Steel, Energy and Trading business units, an average EUR 25 contraction in the margin per ton is sufficient to cause a variation in the annual result of more than EUR 300 million. Moreover, the accuracy of the company’s planning is restricted by the volatile cost of raw materials and shorter contractual durations, on the procurement as well as 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 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]
13.08.2014 Dissemination of a Corporate News, transmitted by DGAP – a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de
| 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 |
| - - - |
| 281970 13.08.2014 |