Salzgitter AG

euro adhoc: Salzgitter AG
Quarterly or Semiannual Financial Statements
Salzgitter Group posts gratifying profit development in the first quarter of 2004 (E)

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In the first quarter of 2004 external Group sales amounted to EUR 1.30 billion (Q1/2003: EUR 1.27 billion). Pre-tax Group profit came in at EUR 26.2 million (Q1/2003: EUR 6.2 million), while after-tax profit rose to EUR 20.1 million (Q1/2003: EUR 2.9 million). ROCE was recorded at 9.3% (March 31, 2003: 3.4%).

At EUR 401 million external sales at the Steel division fell somewhat short of the previous year's figures of EUR 406 million. The pre-tax result improved to EUR 11.5 million (Q1/2003: EUR 2.1 million). The result includes profits of EUR 4.5 million from the sale of shares of the US steel company Steel Dynamics Inc. The Tubes division reported external sales of EUR 206 million, which is 14% less than the performance of the first quarter of 2003 (EUR 240 million). The reasons were -among others- currency effects, as the weak US dollar has a negative earnings impact on transactions invoiced in dollars and converted to euros. The pre-tax result increased to EUR 5.6 million (Q1/2003: EUR 0.2 million). The external sales of the Trading division improved by 14% to EUR 569 million (Q1/2003: EUR 500 million), pre-tax profit more than trebled to a total of EUR 11.2 million (Q1/2003: EUR 2.4 million). At the Services division external sales moved ahead to EUR 77 million (Q1/2003: EUR 65 million), while pre-tax profit increased to EUR 4.8 million (Q1/2003: EUR 3.0 million). In the new business year the Processing division has not experienced any upswing in business activities. The division concluded the quarter posting declining external sales of EUR 47 million (Q1/2003: EUR 55 million) and pre-tax losses of EUR 10.7 million (Q1/2003: EUR -3.5 million).

Based on the current information and expectations regarding the developments of procurement and sales markets, as well as the general conditions and with due consideration given to planned internal measures, the Salzgitter Group anticipates a pre-tax result in the upper double digit million range. The bandwidth of opportunities and risks on the sales and procurement markets is considerably wider than in previous years that were far less impacted by such events.

end of announcement            euro adhoc 14.05.2004
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Further inquiry note: Bernhard Kleinermann Tel.: +49 (0) 5341-21-3783 E-Mail: kleinermann.b@salzgitter-ag.de Tel.:49 (0) 5341-21-01 FAX: +49 (0) 5341-21-2727 Email: gersdorff.b@salzgitter-ag.de

Branche: Iron & Steel
ISIN:      DE0006202005
WKN:        620200
Index:    CDAX, HDAX, MDAX, Prime Standard
Börsen:  Niedersächsische Börse zu Hannover / official dealing
              Frankfurter Wertpapierbörse / official dealing
              Berliner Wertpapierbörse / free trade
              Bayerische Börse / free trade
              Hamburger Wertpapierbörse / free trade
              Bremer Wertpapierbörse (BWB) / free trade
              Börse Düsseldorf / free trade
              Baden-Württembergische Wertpapierbörse / free trade



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