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09.08.2006 – 22:29

Salzgitter AG

euro adhoc: Salzgitter AG
quarterly or semiannual financial statement / SALZGITTER AG: Positive trend holds steady in the first half-year of 2006

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


Against the backdrop of a very firm market for rolled steel and tubes, the divisions of Salzgitter AG which operate in production and trading generated exceptionally high results in the first half of 2006.

Consolidated external sales rose to EUR 4.03 billion (H1 2005: EUR 3.63 billion). With operating results at EUR 437.9 million, pre-tax profit after expenditure of EUR 239.1 million for the part hedging of an increase in the value of the 17.2 % participation in Vallourec S.A., which came to more than EUR 1.3 billion on the reporting date and cannot be disclosed under consolidated assets, stood at EUR 198.8 million (H1 2005: EUR 463.4 million). After-tax profit came in at EUR 130.0 million (H1 2005: EUR 332.7 million). Return on capital employed amounted to 16.6 % (before the aforementioned special effect: 35.3 %; H1 2005: 41.6 %).

External sales by Division:

EUR million              H1 2006          (H1 2005)
Steel                            1,199            (1,134)
Tubes                                828                (705)
Trading                         1,758            (1,631)
Services                          206                (161)
Other/Consolidation          43                  (0)
Group                            4,034            (3,631)

Earnings before taxes by Division:

EUR million                H1 2006         (H1 2005)
Steel                            203.6            (282.3)
Tubes                            138.0            (157.7)
Trading                          78.4              (44.1)
Services                         12.1                (3.7)
Other/Consolidation    -233.3            (-24.4)
Group                            198.8            (463.4)

On the basis of the information currently available and expectations concerning trends in the procurement and sales markets, as well as the general framework conditions, and taking account of the effects of the profit improvement program, the Salzgitter Group expects to post for the current year an operating pre-tax result of at least EUR 650 million plus an additional profit of around EUR 900 million from the sale of its Vallourec participation. 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 fluctuation in the consolidated pre-tax result accruing from conceivable influences in their entirety may, as experience has shown, be within a considerable range.

For further details, please see the press release and the Interim Report for the first half of 2006 ( published tomorrow.

end of announcement                                                 euro adhoc 09.08.2006 21:58:00

ots Originaltext: Salzgitter AG
Im Internet recherchierbar:

Further inquiry note:
Bernhard Kleinermann
Tel.: +49 (0) 5341-21-3783
Tel.:49 (0) 5341-21-01
FAX: +49 (0) 5341-21-2727

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

Original content of: Salzgitter AG, transmitted by news aktuell

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