13.08.2018
Salzgitter AG DE0006202005
DGAP-News: Salzgitter AG: Salzgitter Group achieves best half-year result since 2008
DGAP-News: Salzgitter AG / Key word(s): Half Year Results
Salzgitter AG: Salzgitter Group achieves best half-year result since 2008
13.08.2018 / 07:30
The issuer is solely responsible for the content of this announcement.
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- Pre-tax profit almost doubles year on year
- Significant contribution of internal programs of measures
- Guidance for the full financial year 2018 affirmed
In the first half of 2018, the Salzgitter Group achieved the best result in
earnings before taxes since 2008. The figure came in at EUR 198.6 million,
which is almost double compared with the year-earlier period (EUR 100.2
million). Along with the strong performance of the Strip Steel Business
Unit, all other segments contributed to this impressive development with
positive results.
"Yet another increase in the pre-tax profit is attributable to the operating
performance of the business units as well as to the Group's steady
development resulting from its own endeavors. With EUR 68 million worth of
additional profit improvement potential realized for the first time in 2018
from the 'FitStructure SZAG' initiative and the growth programs, the
Salzgitter Group is demonstrating its ability to sustain the internal
momentum initiated in 2012, also in times of a friendlier market
environment. Given the currently stable but nevertheless also potentially
fragile economy due to unforeseeable developments in trade policies, this is
absolutely imperative," says Chief Executive Officer Prof. Dr.-Ing. Heinz
Jörg Fuhrmann.
The Salzgitter Group's external sales remained unchanged compared with the
year-earlier level (EUR 4,617.1 million; H1 2017: EUR 4,616.2 million). The
growth in the sales of the Strip Steel Business Unit, above all on the back
of selling prices, more than compensated for the decline in the Trading
Business Unit. Earnings before taxes soared to EUR 198.6 million (H1 2017:
EUR 100.2 million). This figure comprises EUR 25.1 million in after-tax
contribution from a participating investment in Europe's leading copper
producer Aurubis AG, a company included at equity (H1 2017: EUR 53.7
million). The after-tax result stood at EUR 135.4 million (H1 2017: EUR 64.7
million). Earnings per share therefore came in at EUR 2.45 (H1 2017: EUR
1.14) and return on capital employed at 12.8 % (ROCE H1 2017: 7.3 %). An
equity ratio of 36.3 % and a net financial position that has risen to EUR
239.5 million (2017/06/30: EUR 24.2 million) form the basis of the
Salzgitter Group's comfortable financial basis and sound balance sheet.
External sales by business unit (EUR million):
H1 2018 H1 2017
Strip Steel 1,242.7 1,102.2
Plate / Section Steel 554.5 537.6
Mannesmann 563.4 569.3
Trading 1,548.8 1,675.7
Technology 610.0 630.1
Industrial Participations / Consolidation 97.6 101.2
Group 4,617.1 4,616.2
Earnings before taxes (EBT) by business unit (EUR million):
H1 2018 H1 2017
Strip Steel 109.7 94.2
Plate / Section Steel 22.0 5.7
Mannesmann 12.3 - 2.7
Trading 25.0 34.6
Technology 20.5 13.6
Industrial Participations / Consolidation 9.1 - 45.1
Group 198.6 100.2
Outlook
Against the backdrop of uncertainty from trade policies and their possible
impact, Salzgitter AG is leaving its guidance for the financial year 2018
unchanged - notwithstanding the currently positive situation of our key
sales markets - and continues to anticipate
- a slight increase in sales to above the EUR 9 billion mark,
- a pre-tax profit of between EUR 250 million and EUR 300 million and
- a return on capital employed that is stable compared the previous year's
figure.
The complete report released on the results of the first half of 2018 can be
viewed at:
https://www.salzgitter-ag.com/en/investor-relations/news-and-publications.html
We make explicit reference to the fact that imponderables, including changes
in the cost of raw materials, precious metal prices and exchange rates, may
have a considerable impact over the course of the financial year 2018. The
resulting fluctuation in the consolidated pre-tax result may be within a
considerable range, either to the positive or to the negative. The
dimensions of this range become clear if one considers that, with around 12
million tons p.a. of steel products sold by the Strip Steel, Plate / Section
Steel, Mannesmann and Trading business units, an average EUR 25 change in
the margin per ton is sufficient to cause a variation in the annual result
of more than EUR 300 million. Moreover, the accuracy of the company's
planning is restricted by the volatile cost of raw materials.
Disclaimer: Some of the statements made in this report possess the character
of forecasts or may be interpreted as such. These are made to the best of
the Company's knowledge and judgment, and by their nature are subject to the
proviso that no unforeseeable deterioration occurs in the economy or in the
specific market situation pertaining to the business units' companies, but
rather that the underlying bases of plans and outlooks prove to be accurate
as expected with regards to their scope and timing. Notwithstanding
prevailing statutory provisions and capital market law in particular, the
Company accepts no obligation to continuously update any forward-looking
statements that are made solely in connection with circumstances prevailing
on the day of their publication.
Contact:
Markus Heidler
Head of Investor Relations
Salzgitter AG
Eisenhüttenstraße 99
38239 Salzgitter
Phone +49 5341 21-6105
Fax +49 5341 21-2570
E-Mail [email protected]
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13.08.2018 Dissemination of a Corporate News, transmitted by DGAP - a
service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
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Language: English
Company: Salzgitter AG
Eisenhüttenstraße 99
38239 Salzgitter
Germany
Phone: +49 5341 21-01
Fax: +49 5341 21-2727
E-mail: [email protected]
Internet: www.salzgitter-ag.de
ISIN: DE0006202005
WKN: 620200
Indices: MDAX
Listed: Regulated Market in Frankfurt (Prime Standard), Hanover;
Regulated Unofficial Market in Berlin, Dusseldorf,
Hamburg, Munich, Stuttgart, Tradegate Exchange
End of News DGAP News Service
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