SALZGITTER AG: Raising of the profit forecast following on the exceptional results in the first half of 2008
Short version of press release published on August 14, 2008
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finances/1st Half 2008
Salzgitter (euro adhoc) - Against the backdrop of the huge cost increases for raw materials and energy as well as slowing global economic growth, the Salzgitter Group achieved excellent results in the first half of the financial year 2008 owing to the persistently high, stable demand for rolled steel and tube products. Consolidated external sales soared EUR 1.51 billion to EUR 6.23 billion (+32 %; first half of 2007: EUR 4.72 billion). Companies which were not part of the group of consolidated companies in the year-earlier period contributed to the sales growth with EUR 687.7 million. Consolidated pre-tax profit of EUR 646.4 million fell only marginally short of the previous year´s record result (first half of 2007: EUR 663.6 million). While the producing steel and tubes companies came under pressure from surging costs, steel trading benefited from the rising spot market prices in particular which reflected a steady, pleasing demand for steel. In addition to the higher costs of raw materials and energy, a total of EUR 59.2 million in additional material costs was taken account of in the Interim Financial Statements for price hikes effective as from the start of the year that will only exert their full influence on the expenses structure of the producing companies in the second half of the year. The Group´s after-tax profit of EUR 436.9 million substantially exceeded the previous year´s figure (first half of 2007: EUR 398.7 million). Earnings per share came to EUR 7.64. Return on capital employed (ROCE) from industrial business reached a remarkable 36.8 % in the first six months of 2008; including income from the investment of funds of more than EUR 2 billion, ROCE amounted to 25.9 % (ROCE in the first half of 2007: 31.4 %).
External sales by Division(EUR million):
H1 2008 (H1 2007) Steel 1,611.0 (1,464.3) Trading 2,656.4 (2,046.2) Tubes 1,077.0 (884.2) Services 284.9 (262.8) Technology 523.4 (-) Others 80.7 (65.6) Group 6,233.4 (4,723.1)
Earnings before tax by Division (EUR million):
H1 2008 (H1 2007) Steel 345.1 (377.3) Trading 140.7 (121.4) Tubes 152.1 (138.9) Services 16.8 (14.3) Technology 12.2 (-) Others -20.5 (11.8) Group 646.4 (663.6)
In the financial year 2008, we shall strive to attain notable growth within the Group, 50 % of which will be due to the first-time full-year inclusion of the companies of the Klöckner Group in our new Technology Division. Given our pleasing performance in the first half-year, we consider it justifiable to raise our pre-tax profit forecast for the Group to over one billion euros. 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: ir@salzgitter-ag.de
Branche: Iron & Steel
ISIN: DE0006202005
WKN: 620200
Index: Midcap Market Index, MDAX, CDAX, Classic All Share, HDAX,
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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
Original-Content von: Salzgitter AG, übermittelt durch news aktuell