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Salzgitter Group with successful start to the year

Steel News - Published on Fri, 17 May 2019

Image Source: Salzgitter
Against the backdrop of an increasingly competitive environment, the Salzgitter Group generated earnings before taxes of EUR 125.9 million (Q1 2018: EUR 95.9 million) in Q1. Along with the very satisfactory pre-tax result of the Strip Steel Business Unit, all other business units and the participating investment in Aurubis AG, a company included at equity, contributed to the positive start to the year. CEO Prof Dr Ing Heinz Jörg Fushrmann said “We can look back on the best first quarter since 2008 with a result that was also better than expected at the turn of the year due to accounting-related effects. Key stimulus determining the steady uptrend in the last five years has been derived from the successful implementation of our own measures. We therefore have every reason to be confident: We have already achieved a great deal! We will continue to forge ahead in a focused manner in the future as well. In the face of emerging economic headwind, and in view of the uncertainties in the political environment, it is indispensable that we continue our intensive endeavors to develop and optimize further with fresh impetus.”

The external sales of the Salzgitter Group came in at EUR 2.3 billion, thereby unchanged against the previous year’s period (Q1 2018: EUR 2.3 billion). With the development of the Strip Steel Business Unit remaining virtually stable, the decline in the Plate / Section Steel Business Unit was compensated by the other business units. The pre-tax earnings of EUR 125.9 comprise a EUR 50.2 million contribution from the Aurubis investment (Q1 2018: EUR 7.5 million) that included € 18.3 million in reporting-date related valuation effects (Q1 2018: EUR –6.3 million) essentially from positive precious metal price developments.

Salzgitter said “Given the volatility, we cannot assume that this trend will continue over the remainder of the year. Moreover, the contribution from the Aurubis investment includes EUR 20.0 million (Q1 2018: EUR 0) in income from an accounting adjustment through profit and loss in connection with shares acquired in Aurubis AG in the first quarter of 2019 at average price below the market value of the pro rata equity capital. The after-tax result stood at EUR 96.7 million (Q1 2018: EUR 65.2 million).”

Outlook Salzgitter AG affirmed its forecast for the financial year 2019. It said “We continue to anticipate a slight increase in sales to above the EUR 9.5 billion mark and a pre-tax profit (EBT) of between EUR 125 million and EUR 175 million.”

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Posted By : Sanju Moirangthem on Fri, 17 May 2019
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