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Salzgitter AG

SALZGITTER AG: 2008 off to a great start with new record sales and excellent earnings in the first quarter

Salzgitter (euro adhoc) -

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finances/Interim report
In the first quarter of 2008, the
Salzgitter Group benefited from the marked upswing in demand in the 
European steel market, the expansion of business activities in the 
precision tubes segment, as well as from the contribution of the new 
Technology Division.
Consolidated external sales rose 22 % to EUR 2.90 billion (first 
quarter of 2007: EUR 2.38 billion). Klöckner-Werke AG, acquired at 
the start of the second half-year of 2007 and integrated into the new
Technology Division, and other companies in the Tubes Division 
contributed EUR 314.2 million to this result.
Pre-tax profit of EUR 291.9 million remained at an excellent level 
(first quarter of 2007: EUR 325.4 million) thanks to very good 
results delivered especially by the Steel, Tubes and Trading 
divisions. What makes this outcome even more remarkable is that not 
only higher current expenses for raw materials and energy, but also 
EUR 49.1 million in additional materials expenses were considered in 
view of the further price increases that largely became effective 
from January 1, 2008. Due to a reduction in the corporate tax rate, 
the Group´s after-tax profit, which stood at EUR 194.9 million, 
almost attained the previous year´s level (first quarter of 2007: EUR
196.6 million). Earnings per share posted EUR 3.40 (first quarter of 
2007: EUR 3.41). Return on capital employed (ROCE) from industrial 
business reached a remarkable 37.9 % in the first three months of 
2008; including income from the investment of funds of more than EUR 
2 billion, ROCE came to 22.4 % (first quarter of 2007: 30.8 %).
Sales by Division (EUR million):
Q1 2008   (Q1 2007)
Steel               1,110.4   (1,007.4)
Trading             1,307.5   (1,267.4)
Tubes                 726.5     (591.2)
Services              303.5     (296.2)
Technology            264.8         (-)
Others                130.1      (90.5)
Internal Sales       -941.7    (-871.2)
Group               2.901.1   (2,381.5)
Earnings before tax by Division (EUR million):
Q1 2008  (Q1 2007)
Steel                  172.5    (181.5)
Trading                 48.6     (64.8)
Tubes                   66.0     (65.5)
Services                 4.9      (8.1)
Technology               4.2        (-)
Others/Consolidation    -4.3      (5.6)
Group                  291.9    (325.4)
As before, we are striving to achieve significant growth within the 
Group in the financial year 2008. More than 50 % of this growth is to
be generated from the first-time full-year inclusion of the companies
of the Klöckner Group in our new Technology Division. Associated with
this growth, we anticipate operating profit before tax in excess of 
EUR 900 million.
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 2008.
More information can be found in the full press release and interim 
report published today (see www.salzgitter-ag.de).
end of announcement                               euro adhoc

Further inquiry note:

Bernhard Kleinermann
Tel.: +49 (0) 5341-21-3783
E-Mail: kleinermann.b@salzgitter-ag.de

Branche: Iron & Steel
ISIN: DE0006202005
WKN: 620200
Index: Midcap Market Index, MDAX, CDAX, Classic All Share, HDAX,
Prime All Share
Börsen: Börse Frankfurt / regulated dealing/prime standard
Börse Berlin / free trade
Börse Hamburg / free trade
Börse Stuttgart / free trade
Börse Düsseldorf / free trade
Börse München / free trade
Börse Hannover / regulated dealing

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