Salzgitter AG

euro adhoc: Salzgitter AG
quarterly or semiannual financial statement
Steel, Tubes and Trading post record sales and excellent results in the first quarter of 2006

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12.05.2006

Boosted by a market for rolled steel, which developed much more favorably than envisaged a few months ago, and the persistently robust demand for tubes, the Salzgitter Group raised the operating results of its divisions in the first three months of 2006 as against the last quarter of 2005.

Consolidated external sales rose to EUR 1.98 billion (Q1 2005: EUR 1.77 billion). With operating results at EUR 198.9 million, pre-tax profit after expenditure of EUR 148.7 million in relation to hedging transactions stood at EUR 50.2 million (Q1 2005: 253,5 Mio. EUR). After-tax profit came in at EUR 35.7 million. Return on capital employed amounted to 8.8 % (before the aforementioned special effect: 31.9 %; Q1 2005: 52.0 %).

External sales by Division (EUR million):

                                          Q1 2006        (Q1 2005)
Steel                                         606              (574)
Tubes                                         398              (313)
Trading                                      866              (797)
Services                                      93                (81)
Others/Consolidation                  20                 (0)
Group                                      1,983          (1,765)

Earnings before taxes by Division:(EUR million)

                                          Q1 2006        (Q1 2005)
Steel                                      104.4          (166.4)
Tubes                                        62.2            (77.2)
Trading                                    30.1            (26.3)
Services                                    5.7              (3.4)
Others/Consolidation            -152.2          (-19.8)
Group                                        50.2          (253.5)

On the basis of the information currently available and estimates concerning trends in the procurements and sales markets as well as the general framework conditions, and taking account of the effects of the profit improvement program, the Salzgitter Group’s operating pre-tax result is expected to reach at least EUR 600 million in the current year. This forecast is, of course, net of the special effects arising from hedging transactions which are, by nature, not foreseeable as they depend on the development of the share price of Vallourec S.A. Express reference is made to the fact that opportunities and risks arising from currently unforeseeable trends in sales prices, input materials and capacity level developments, as well as changes in the currency parity, may considerably affect performance in the course of the remaining financial year 2006. The resulting fluctuation in the consolidated pre-tax result may, as experience has shown, be within a considerable range.

For further details, please see the press release and the Interim Report for the 1st Quarter of 2006 (www.salzgitter-ag.de) published today.

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ots Originaltext: Salzgitter AG
Im Internet recherchierbar: http://www.presseportal.de

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, CDAX, HDAX
Börsen:  Frankfurter Wertpapierbörse / official dealing/prime standard
              Börse Berlin-Bremen / free trade
              Hamburger Wertpapierbörse / free trade
              Baden-Württembergische Wertpapierbörse / free trade
              Börse Düsseldorf / free trade
              Bayerische Börse / free trade
              Niedersächsische Börse zu Hannover / official dealing



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