Salzgitter AG

euro adhoc: Salzgitter AG
Quarterly or Semiannual Financial Statements
Salzgitter Group reports a leap in profits in Q1 2005

---------------------------------------------------------------------   Disclosure announcement transmitted by euro adhoc.   The issuer is responsible for the content of this announcement. ---------------------------------------------------------------------

13.05.2005

Thanks to strong global demand and the generally satisfactory level of prices - achieved in stages since the beginning of last year - for rolled steel products and tubes, the Salzgitter Group recorded exceptional rises in sales and profits in the first quarter of 2005 over the same period in 2004 which had marked the start of the present favorable situation in the steel market.

Consolidated external Group sales rose by 36 % to EUR 1.76 billion (Q1 2004: EUR 1.30 billion). Group pre-tax profits at EUR 253.5 million represented a new quarterly high (Q1 2004: EUR 26.2 million). Profits after tax of EUR 173.5 million (Q1 2004: EUR 20.1 million) and an annualized return on capital employed (ROCE) of 56.5 % (Q1 2004: 9.3 %) clearly illustrate the exceptionally positive business situation in comparison with the same period last year.

External sales at the various divisions in EUR million:
~
                                 Q1 2005            (Q1 2004)
Steel                         525                  (401)    
Tubes                         309                  (206)
Trading                      797                  (569)
Services                    77                    (77)
Processing                 57                    (47)
Group                         1,765                (1,300)
~

Pre-tax results at the various divisions in EUR million:
~
                                 Q1 2005            (Q1 2004)
Steel                         167.7                (11.5)
Tubes                         77.0                 (5.6)
Trading                      26.3                 (11.2)
Services                    5.7                  (4.8)
Processing                 -3.4                 (-10.7)
Consolidation/Others -19.8                (3.8)
Group                         253.5                (26.2)
~

On the basis of current information and expectations regarding the development in the input and output markets and the situation in general, and taking into account the effects of the profitability improvement program, for the current year the Salzgitter Group should return a pre-tax result in the mid three-digit million range. We expressly point out that opportunities and risks resulting from at present unforeseeable variations in product revenues, input material prices and capacity utilization as well as exchange rate fluctuations may have a significant effect on developments in the financial year 2005, especially in the second half. Other positive or negative effects may derive from the valuation of inventories in accordance with modified IFRS standards or from the application of the latter. The resulting fluctuation margin in consolidated pre-tax earnings resulting from all mentioned factors likewise falls within a triple-digit million spread.

For further details and an outlook on the current financial year, please refer to today’s press release (see www.salzgitter-ag.de).

end of announcement                                euro adhoc 13.05.2005 06:30:00
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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:    MDAX, Prime Standard, CDAX, HDAX
Börsen:  Berliner Wertpapierbörse / free trade
              Hamburger Wertpapierbörse / free trade
              Baden-Württembergische Wertpapierbörse / free trade
              Börse Düsseldorf / free trade
              Bayerische Börse / free trade
              Bremer Wertpapierbörse (BWB) / free trade
              Frankfurter Wertpapierbörse / official dealing
              Niedersächsische Börse zu Hannover / official dealing



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