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Salzgitter Group Reports H1 Performance

Steel News - Published on Tue, 13 Aug 2019

Image Source: Alamy
In the first half of 2019, the Salzgitter Group reported generally satisfactory performance, with all business units making positive contributions to profit. The Group also closed the second quarter of the current financial year with a pre-tax profit (EUR 19.4 million). Declining rolled steel prices in combination with further raw materials price hikes resulted in a downturn of the earnings situation of the steel-related segments. Meanwhile, the KHS Group as the largest unit of the Technology division, continues to develop very satisfactorily. The Group’s stability, also proven in more challenging phases, is due in particular to the rigorous implementation of its efficiency and growth programs.

In the first six months of 2019, the Salzgitter Group reported marginally lower external sales of EUR 4.5 billion compared with the previous year’s period (H1 2018: EUR 4.6 billion). The main drivers of this development were the volume- and price-induced declines in the Strip Steel, along with the Plate / Section Steel and Trading business units. Earnings before taxes achieved a presentable EUR 145.3 million (H1 2018: EUR 198.6 million). Included is a contribution of EUR 56.4 million from the participating investment in Aurubis AG accounted for using the equity method (H1 2018: EUR 25.1 million). This figure comprises EUR 27.8 million (H1 2018: EUR 0) in income from an accounting adjustment through profit and loss in connection with the Aurubis shares acquired in the first six months of 2019 at an average price below the market value of the pro rata equity of the shares.

The after-tax result stood at EUR 96.4 million (H1 2018: EUR 135.4 million).

Outlook - Salzgitter AG affirms its profit forecast for the financial year 2019 and anticipates slightly lower sales above the EUR 9.0 billion mark, a pre-tax profit (EBT) of between EUR 125 million and EUR 175 million and a return on capital employed (ROCE) that is tangibly below the previous year's figure

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Posted By : Ratan Singh on Tue, 13 Aug 2019
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