Salzgitter AG — Earnings Release 2015

Aug 13, 2015

News Details

Corporate | 13 August 2015 07:30

Salzgitter AG: The Salzgitter Group confirms turnaround in the first half of 2015

Salzgitter AG / Key word(s): Half Year Results

2015-08-13 / 07:30

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• Earnings before taxes significantly up on previous year
• “Salzgitter AG 2015” restructuring program is driving force behind the improved earnings
• Forecast for the financial year 2015 confirmed

The Salzgitter Group closed the first half of 2015 with its first positive half-year earnings before taxes since 2011, substantially up on the result from the previous year. All business units contributed to this pleasing development with improved results compared to the previous year. In total, EUR 33.1 million in expenses for structure-enhancing measures was incurred. The financial basis remains very solid with a 35 % equity ratio, as well as a net credit balance of EUR 178 million.

CEO Prof. Dr.-Ing. Heinz Jörg Fuhrmann commented on the results: “This development proves the far-reaching effects of the groupwide restructuring program ‘Salzgitter AG 2015’, regardless of the still challenging economic environment in Europe. This is the result of our own efforts. Nevertheless, we still have a long way to go and a wide range of tasks to complete. Our aim is to consistently continue along this successful path.”

At EUR 4,529.6 million, the external sales of the Salzgitter Group in the first half of 2015 were roughly on a par with the previous year level (first half of 2014: EUR 4,549.3 million). The company generated a gratifying pre-tax profit of EUR 80.2 million (first half of 2014: EUR -4.2 million). This profit contains a EUR 16.4 million positive contribution from the Aurubis investment (first half of 2014: EUR 39.2 million), as well as a total of EUR 33.1 million in expenses for streamlining measures. The after-tax result stood at EUR 41.3 million (first half of 2014: EUR -15.9 million), resulting in earnings per share of EUR 0.72 (first half of 2014: EUR -0.33). The return on capital employed (ROCE) was recorded at 5.4 % (first half of 2014: 1.1 %).

External sales by business unit (EUR million):

	H1 2015	(H1 2014)
Strip Steel	1,030.1	(1,095.6)
Plate / Section Steel	500.2	(556.5)
Energy	574.9	(651.0)
Trading	1,690.3	(1,560.0)
Technology	636.3	(592.8)
Industrial Participations / Consolidation	97.7	(93.2)
Group	4,529.6	(4,549.3)

Earnings before taxes (EBT) by business unit (EUR million):

	H1 2015	(H1 2014)
Strip Steel	20.7	(-6.9)
Plate / Section Steel	-19.5	(-42.6)
Energy	3.3	(-19.8)
Trading	17.3	(7.0)
Technology	14.6	(11.5)
Industrial Participations / Consolidation	43.7	(46.6)
Group	80.2	(-4.2)

Based on planning by the individual business units, and taking account of further positive effects from the “Salzgitter AG 2015” program, we continue to assume the following for the Salzgitter Group in 2015:

– stable sales,

– a pre-tax profit in the lower to mid-double-digit million euro range and

– a return on capital employed (ROCE) that is higher than the previous year’s figure.

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, please note 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 2015. 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 scale of this range becomes clear if one considers that, with around 12 million tons p.a. of steel products sold by the Strip Steel, Plate / Section Steel, Energy and Trading Business Units, an average EUR 25 change 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 side, as well as on the shipments side.

Disclaimer: Some of the statements made in this report have the character of forecasts or may be interpreted as such. These are made to the best of the Company’s knowledge and judgement, 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 with regards to their scope and timing. Notwithstanding prevailing statutory provisions and capital market law in particular, the Company accepts 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 ir@salzgitter-ag.de

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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:	info@salzgitter-ag.de
Internet:	www.salzgitter-ag.de
ISIN:	DE0006202005
WKN:	620200
Listed:	Regulated Market in Frankfurt (Prime Standard), Hanover; Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart

End of News	DGAP News-Service

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