Salzgitter AG

EANS-News: Salzgitter AG
The Salzgitter Group emerges from the trough in the second quarter of 2009

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finances

Salzgitter (euro adhoc) - In accordance with expectations, the Salzgitter Group was exposed to considerable pressure from the impact of the global financial and economic crisis in the first half of the financial year 2009. This was reflected above all in the results of the Steel, Trading and Technology divisions. While the positive contributions made by the tubes product segments, the Aurubis AG holding, and extensive funds invested had a stabilizing counter-effect, they were unable to compensate for the negative influences of the economic environment. The Group´s external sales contracted in almost all product segments, by 34 % to EUR 4,125.7 million, owing to significant declines in shipments and selling prices. In the first half-year, the Salzgitter Group recorded a pre-tax loss of EUR 195.2 million. This result has absorbed significant accounting measures mainly in the Steel Division relating to adjustments to the value of inventories, along with other measures carried out in the 2008 financial statements, to ensure that the Group remains free from hidden inventory valuations burdens. The 23 % holding in the leading European copper producer Aurubis AG, a company consolidated at equity, contributed very satisfactory after-tax earnings of EUR 32.7 million. The consolidated after-tax result came to EUR-165.0 million, which brings earnings per share to EUR-3.07. Return on capital employed (ROCE) from industrial business stood at -12.9 %; including around EUR 1.5 billion in cash and cash equivalents it came to -8.1 %.

External sales by Division (EUR million):

H1 2009    (H1 2008)
Steel                    799.9    (1,611.0)
Trading                1,683.7    (2,656.4)
Tubes                  1,107.9    (1,077.0)
Services                 146.4      (284.9)
Technology               367.5      (523.4)
Others                    20.5       (80.7)
Group                  4,125.7    (6,233.4) 

Earnings before tax by Division (EUR million):

H1 2009    (H1 2008)
Steel                   -190.2      (345.1)
Trading                  -57.7      (140.7)
Tubes                     96.0      (152.1)
Services                  -5.4       (16.8)
Technology               -43.7       (12.2)
Others/Cons.               5.8      (-20.5)
Group                   -195.2      (646.4) 

Our original forecast for a half-yearly loss with a possible brightening of the situation in the second half of the year has been confirmed. However, there are as yet no signs of a strong and sustained turnaround in the steel market, as any distinct recovery tendencies in order intake and selling prices so far have only been discernable for a few product groups. The Salzgitter Group therefore anticipates a pre-tax loss in the second half-year as well which, however, is unlikely to be as high as that of the reporting period ended. In our opinion it is conceivable that more or less breakeven in monthly results may be achieved towards the end of the year.

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
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Further inquiry note:

Bernhard Kleinermann
+49 (0) 5341/21-3783
kleinermann.b@salzgitter-ag.de

Branche: Iron & Steel
ISIN: DE0006202005
WKN: 620200
Index: DAX, Midcap Market Index, CDAX, Classic All Share, 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

Original-Content von: Salzgitter AG, übermittelt durch news aktuell

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