Corporate | 15 May 2013 07:30
Salzgitter AG / Key word(s): Quarter Results 15.05.2013 / 07:30 --------------------------------------------------------------------- In the first three months of 2013, the performance of the Salzgitter Group was overshadowed by persistently unfavorable general economic conditions in Europe. The recovery in the demand for steel at the beginning of the year proved to be short lived; a renewed weakening of selling prices was not compensated by the more hesitant reduction in the cost of raw materials. Capacity utilization in the flat steel and plate businesses, as well as the tubes companies in part was however comparatively satisfactory. The Trading Division benefited from the positive position of its international trading,while the Technology Division continued to successfully implement its restructuring measures. Overall, the Group closed the first quarter of 2013 with a pre-tax loss that underscores the significance of the 'Salzgitter AG 2015' reorganization program initiated the year before. Consolidated external sales declined to EUR 2,446.8 million, down EUR 168 million, mainly due to selling prices (first quarter of 2012: EUR 2,614.6 million). Earnings before interest, tax, depreciation and amortization (EBITDA) stood at EUR 98.7 million (first quarter of 2012: EUR 88.9 million), and the pre-tax result came in at EUR -15.8 million (first quarter of 2012: EUR -19.6 million). This figure includes an amount of EUR 5.8 million in after-tax profit from Aurubis AG (first quarter of 2012: EUR 28.0 million), a participation included at equity. The result after tax posted EUR -16.6 million (first quarter of 2012: EUR -15.5 million). An equity ratio of 40.4 % and a net financial position of more than EUR 400 million continue to form a sound financial basis for mastering the current challenges. External sales by Division (EUR million):Q1 2013 (Q1 2012) Steel 670.5 (724.8) Trading 993.7 (1,103.9) Tubes 400.8 (389.0) Services 101.4 (108.4) Technology 270.8 (280.1) Other 9.5 (8.6) Group 2,446.8 (2,614.8)Earnings before tax (EBT) by Division (EUR million):Q1 2013 (Q1 2012) Steel -33.7 (-51.6) Trading 10.2 (11.5) Tubes -12.5 (-9.6) Services 1.7 (6.2) Technology 3.6 (2.5) Other/Consolidation 14.8 (21.4) Group -15.8 (-19.6)The limited reliability of economic forecasts for Germany and for Europe above all continues to hamper the provision of valid and detailed guidance for the results of the Salzgitter Group. Fundamentally, we do not expect a significant improvement in the economic environment over the remainder of the year. In view of the deterioration in the prospects of the Steel and Tubes Divisions' business it has therefore become necessary to adjust the guidance for the Salzgitter Group: We now anticipate stable sales and a negative pre-tax result in the mid-double-digit million euro range in the financial year 2013. As already announced,additional special effects may still arise as a consequence of implementing the 'Salzgitter AG 2015' Group project. We make reference to the fact that opportunities and risks from currently unforeseeable trends in selling prices, input material prices and capacity level developments, as well as changes in the currency parity, may considerably affect performance in the course of the financial year 2013. 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 9 million tons of steel products sold by the Steel, Trading and Tubes divisions over the remainder of the financial year, an average EUR 20 contraction in the margin per ton is sufficient to cause a variation in the annual result of more than EUR 180 million. Moreover, the accuracy of the company's planning is restricted by the volatilities and shorter contractual durations, both on the procurement and on the sales side. Disclaimer: Some of the statements made in this report possess the character of forecasts or may be interpreted as such. They are made upon the best of information and belief 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 division companies, but rather that the underlying bases of plans and outlooks prove to be accurate as expected in terms of their scope and timing. Notwithstanding prevailing statutory provisions and capital market law in particular, the company undertakes 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 Deputy 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 End of Corporate News --------------------------------------------------------------------- 15.05.2013 Dissemination of a Corporate News, transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------- Language: English Company: Salzgitter AG 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 Listed: Regulierter Markt in Frankfurt (Prime Standard), Hannover; Freiverkehr in Berlin, Düsseldorf, Hamburg, München, Stuttgart End of News DGAP News-Service --------------------------------------------------------------------- 211110 15.05.2013