Salzgitter Aktiengesellschaft / DE0006202005
12.08.2024 - 07:30:11Salzgitter AG delivers a pre-tax result at breakeven in the first half of 2024
| Salzgitter Aktiengesellschaft / Key word(s): Half Year Results 12.08.2024 / 07:30 CET/CEST The issuer is solely responsible for the content of this announcement. Burden on steel-related activities from the economy failing to rebound Supplementary short-term profitability improvement measures initiated Diversification effective – Technology Business Unit heading for a record result in 2024 In the first half of 2024, the Salzgitter Group recorded earnings before interest, taxes, depreciation and amortization (EBITDA) of € 233.6 million and a pre-tax profit of € 11.5 million. Europe’s downbeat economic trend, above all in Germany, placed a significant burden on the development of business in the steel-related business units. By contrast, the Technology Business Unit’s very gratifying earnings and the contribution from the participating investment in Aurubis AG boosted the consolidated result. As a result of the prices of most rolled steel products trending down, the Salzgitter Group’s external sales dropped to € 5.24 billion (H1 2023: € 5.84 billion). Also mainly due to selling prices, EBITDA (€ 233.6 million; H1 2023: € 429.3 million) and earnings before taxes (€ 11.5 million; H1 2023: € 211.0 million) declined. The result includes an after-tax contribution of € 70.6 million from Aurubis AG (H1 2023: € – 2.4 million), an investment included at equity (IFRS accounting). The after-tax result came in at € – 18.6 million (H1 2023: € 160.2 million), which brings basic earnings per share to € – 0.40 (H1 2023: € 2.91). Return on capital employed (ROCE) stood at 1.9 % (H1 2023: 7.9 %). The equity ratio remained at a very sound 45.6 % (H1 2023: 44.8 %). As Gunnar Groebler, Salzgitter AG’s Chief Executive Officer, comments: “To date, the German economy is showing no signs of a sustainable recovery. The year 2024 is proving to be one of the most challenging for Germany’s steel industry in decades. Aside from the success of our Technology Business Unit – KHS is approaching a record result for the year – 2024 appears to be a lost year from an operating standpoint, while we have achieved a great deal in strategic terms. The sale of Mannesmann Stainless Tubes represents the most important step so far in our active portfolio management. We anticipate cash inflow of € 125 million from this in the second half of the year. We will continue to rigorously progress this process of change that is necessary to meet the current and future challenges to our competitive capabilities. Further strategic and structural adjustments are to follow. Our aim of producing green steel as from 2026 is set in stone. The implementation of the first stage of the SALCOS® transformation program remains on schedule, and the first plant components have been delivered on site. Furthermore, an important prerequisite for launching green key markets for steel has been set in place in the form of LESS, developed by the German Steel Federation for the classification of low carbon steel products. Flanking this development, we successfully introduced our SALCOS® brand for green steel products. We are therefore playing our part in decarbonizing Germany’s economy. We are challenging the policy makers to think beyond election periods and to act in order to create the requisite framework conditions for the transformation to succeed – first and foremost, with a competitive and reliable energy supply.” Chief Financial Officer Birgit Potrafki elaborates further: “The Salzgitter Group’s result in the first half of 2024 has not been satisfactory, also against the backdrop of the difficult economic environment. Endeavors to counteract this have been assigned top priority. Our motto is therefore: “We cannot change the direction in which the wind is blowing. What we can do is to reset our sails in order to achieve our goals.” With this in mind, and in addition to our “Performance 2026” profit improvement program, we have initiated short-term measures to stabilize earnings and secure liquidity. New capex is being scrutinized and disbursement plans revised for investments already approved. We have also gone through other cost positions and made cuts in various areas. In the medium term, structural adjustments that are currently at the drafting stage will take effect in the individual business units. We will be reporting on this in due course.” External sales by business unit (EUR million):
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 ir@salzgitter-ag.de 12.08.2024 CET/CEST Dissemination of a Corporate News, transmitted by EQS News - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The EQS Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.eqs-news.com |
| Language: | English |
| Company: | Salzgitter Aktiengesellschaft |
| Eisenhüttenstraße 99 | |
| 38239 Salzgitter | |
| Germany | |
| Phone: | +49 5341 21-01 |
| Fax: | +49 5341 21-2727 |
| E-mail: | info@salzgitter-ag.de |
| Internet: | www.salzgitter-ag.de |
| ISIN: | DE0006202005 |
| WKN: | 620200 |
| Indices: | SDAX |
| Listed: | Regulated Market in Frankfurt (Prime Standard), Hanover; Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate Exchange |
| EQS News ID: | 1965177 |
| End of News | EQS News Service |
| |
