November 21, 2008

Salzgitter Group key figures for the FY 2007

In the financial year 2007, the Salzgitter Group set a new record high for consolidated sales, thereby considerably exceeding the already excellent operating result of the previous year. Along with the ongoing exceptionally good market for rolled steel products and tubes, the consistent implementation of further growth strategy measures contributed to these gratifying developments.

Salzgitter Group sales rose by 21 % to EUR 10.19 billion. The first time consolidation of Klöckner Werke AG, acquired at the start of the second half-year, in the new Technology Division and other companies in the Tubes Division contributed EUR 665 million to this result. Earnings before tax of EUR 1,314 million impressively outperformed the operating profit of 2006 which is the relevant basis for comparison. The re launch of the profitability improvement program across the Group also made a remarkable contribution to this result.

Good capacity utilization in steel processing sectors raised the demand for steel further in 2007. The total sales of the Steel Division climbed EUR 617 million to EUR 3,967 million. Primarily due to higher selling prices the sales of the large steel companies grew significantly. The Steel Division generated an excellent pre tax profit of EUR 749.4 million, thereby outperforming the previous year’s figure of EUR 433.8 million by 73 %. Against the backdrop of excellent market conditions, the consistent leverage of profitability improvement potential was also a contributing factor.