Tous Actualités
Suivre
Abonner Salzgitter AG

Salzgitter AG

EANS-News: Salzgitter AG
Difficult economic situation and accounting measures impact the result of the first quarter

Salzgitter (euro adhoc) -

  Corporate news transmitted by euro adhoc. The issuer/originator is solely
  responsible for the content of this announcement.
finances/Interim Report
In the first quarter of the financial year,
the Salzgitter Group was exposed to the pressure exerted by 
recessionary trends, especially in the businesses of the Steel, 
Trading and Technology divisions. By contrast, the sustained positive
result of the Tubes Division, coupled with income from the 
shareholding in Aurubis AG and financial investments, had a 
considerably stabilizing effect. In order to take account of selling 
price trends in the rolled steel markets, as well as declines in the 
price of raw materials, both actual and foreseeable, further 
valuation adjustments were carried out on inventories in the 
reporting period. As a result, the Group is free from hidden 
encumbrances accruing from inventory valuation.
Consolidated external sales fell by 24 % to EUR 2,194.7, which is 
indicative of the substantial decline in the business activities of 
all divisions, to the exception of the Tubes Division. The Salzgitter
Group closed the first quarter with a pre-tax loss of EUR 98.3 
million. This result includes around EUR 100 million for accounting 
measures relating to inventory valuation in the Steel Division. 
Moreover, a very gratifying first-time amount of EUR 23.7 million in 
after-tax earnings of Aurubis AG, the leading European copper 
manufacturer in which the Group holds a 23 % stake consolidated at 
equity, was recorded. The after-tax result stood at EUR -74.1 
million, bringing earnings per share to EUR -1.38. Return on capital 
employed (ROCE) from industrial operations was negative (-11.3 %) 
and, including EUR 1.3 billion in cash and cash equivalents, result 
in -7.7 %.
External sales by Division (EUR million):
Q1 2009     (Q1 2008)
Steel                     427.7       (782.1)
Trading                   926.9     (1,154.3)
Tubes                     552.0       (543.0)
Services                   83.4       (128.6)
Technology                192.5       (248.5)
Others                     12.1        (44.6)
Group                   2,194.7     (2,901.1)
Earnings before tax by Division (EUR million):
Q1 2009     (Q1 2008)
Steel                    -129.7       (172.5)
Trading                   -20.6        (48.6)
Tubes                      50.8        (66.0)
Services                   -3.2         (4.9)
Technology                -23.3         (4.2)
Others                     27.7        (-4.3)
Group                     -98.3       (291.9)
Owing to the ailing global economy, we consider our original forecast
of not achieving breakeven for the Group in the first half of the 
year to be affirmed. We currently do not have any reliable 
indications that there will be a recovery in the second half year. We
nonetheless believe it possible that order activity for steel 
products will settle at a normal level once the steel processors and 
traders have completed the process of reducing their inventories.
As from the third quarter, the reduction in the price of raw 
materials will be felt to a greater extent in terms of in the 
manufacturing costs. Accordingly, we still believe, even taking 
account of valuation adjustment measures carried out on inventories, 
that, given a notable recovery in the rolled steel market and in 
demand from the automotive industry, achieving breakeven in the 
pre-tax result in 2009 should still be possible. This is, however, 
contingent upon a strong and sustained turnaround of the situation in
the steel market.
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: DAX, CDAX, Classic All Share, HDAX, Prime All Share
Börsen: Frankfurt / regulated dealing/prime standard
Berlin / free trade
Hamburg / free trade
Stuttgart / free trade
Düsseldorf / free trade
München / free trade
Hannover / regulated dealing

Plus de actualités: Salzgitter AG
Plus de actualités: Salzgitter AG