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Salzgitter Group Adjusts Earnings Forecast for Financial Year 2019

Steel News - Published on Fri, 27 Sep 2019

Image Source: SteelGuru
In Supervisory Board meeting of Salzgitter AG the following key topics were discussed, among others, and the respective resolutions were subsequently taken by the Executive Board: Along with other companies, Salzgitter AG is the subject of investigations on the grounds of suspected cartel arrangements regarding heavy plate and strip steel products. Given the advanced stage of discussions with the German Federal Cartel Office, Salzgitter AG assumes that the procedure can be brought to an end in the near future in mutual agreement. The risk provision formed in the 2018 annual financial accounts will therefore be increased by around EUR 140 million as of September 30, 2019.

The “FitStructure 2.0" profit improvement program that has been in preparation for a few months harbors profit potential of more than WUR 200 million that is gradually to take effect through to 2023. Specifying the program that comprises more than 600 individual measures has now reached the final stage.

In line with the forecast to date, EBT from operations is anticipated between EUR 125 and 175 million. As a consequence of the aforementioned risk provision and of the restructuring expenses still to be determined for the implementation of "FitStructure 2.0" we anticipate a pretax loss in the mid double-digit million euro range for the financial year 2019.

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Posted By : Sanju Moirangthem on Fri, 27 Sep 2019
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