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14.11.2012 – 07:31

Salzgitter AG

EANS-News: SALZGITTER AG - first nine months of 2012

  Corporate news transmitted by euro adhoc. The issuer/originator is solely
  responsible for the content of this announcement.
quarterly report

Subtitle: Challenging market environment causes a decline in results

Salzgitter (euro adhoc) - Following a promising start to the year, the
Salzgitter Group was exposed to an increasingly difficult environment in the
first nine months of the financial year 2012. Along with the European steel
market already ailing in a number of regions, the business activities of German
steel processors and traders have also recently lost discernible momentum.
Against this background, the Salzgitter Group reported a notable decline in its
pre-tax result as against the previous year, first and foremost due to the
unsatisfactory development in the results of the Steel Division. 

Consolidated external sales climbed by 9 % to EUR 8,015.1 million (9 months
2011: EUR 7,331.4 million). The greatest contribution was made by the
significant increase in the business volume of the Trading Division. The pre-tax
result stood at EUR -42.6 million at the end of the first nine months of 2012 (9
months 2011: EUR 169.1 million). This figure comprises a total of EUR 44.6
million in after-tax contribution by Aurubis AG, a participation included at
equity (9 months 2011: EUR 52.9 million). The consolidated result after tax
amounted to EUR -48.2 million (9 months 2011: EUR 114.7 million). With an equity
ratio unchanged at 43 % and a net financial position of EUR 573 million, the
financial situation of our company remains sound; Salzgitter AG is therefore
well equipped to meet the current challenges.

External sales by Division (EUR million):

                                9M 2012 (9M 2011)
Steel                           2,037.6 (2,071,4)
Trading                         3,659.0 (2,810.6)
Tubes                           1,164.7 (1,299.6)
Services                          313.3   (355.7)
Technology                        813.0   (728.4)
Other                              27.5    (65.6)
Group                           8,015.1 (7,331.4)

Earnings before tax (EBT) by Division (EUR million):

                                9M 2012 (9M 2011)
Steel                            -149.8    (35.9)
Trading                            42.0    (53.3)
Tubes                              17.2    (59.3)
Services                           12.5    (14.6)
Technology                          0.8   (-36.5)
Other/Consolidation                34.8    (42.5)
Group                             -42.6   (169.1)

Over the course of the year to date, European steel activities were impacted by
the tense economic situation in the countries of southern Europe that have been
particularly hard hit by sovereign debt and structural problems. The activities
of German steel processors and traders have also recently been increasingly
affected by the more pessimistic business outlook. With regard to the Salzgitter
Group, we affirm our forecast for stable sales at minimum and now anticipate a
pre-tax result around breakeven.

As in recent years, we make reference to the fact that opportunities and risks
from currently unforeseeable trends in selling prices, input material prices and
capacity level developments, as well as changes in the currency parity, may
considerably affect performance in the course of the financial year 2012.
Additional positive or negative effects may arise from structural or
methodological changes. This includes in particular measurement pursuant to IFRS
standards and their application. The resulting fluctuation in the consolidated
pre-tax result may be within a considerable range, either to the positive or to
the negative.

Some of the statements made in this report possess the character of forecasts or
may be interpreted as such. They are made to the best of knowledge and belief,
and by their nature are subject to the proviso that no unforeseeable
deterioration occurs in the economy or in the specific market conditions
pertaining to the companies of the various divisions, but rather that the
underlying bases of plans and outlooks prove to be accurate as expected in terms
of their scope and timing. The company undertakes no obligation to update any
forward-looking statements.

Further inquiry note:
Bernhard Kleinermann 
+49 (0) 5341/21-1852

end of announcement                               euro adhoc 

company:     Salzgitter AG
             Eisenhüttenstraße 99
             D-38239 Salzgitter
phone:       +49 (0) 5341-21-3783
sector:      Iron & Steel
ISIN:        DE0006202005
indexes:     Midcap Market Index, MDAX, CDAX, Classic All Share, Prime All Share
stockmarkets: free trade: Hannover, Berlin, München, Hamburg, Düsseldorf,
             Stuttgart, regulated dealing/prime standard: Frankfurt 
language:   English

Original content of: Salzgitter AG, transmitted by news aktuell

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