Corporate | 27 February 2015 07:30
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Salzgitter AG / Key word(s): Final Results
– Strong impact on earnings by the “Salzgitter AG 2015” program – Sound balance sheet: equity ratio of 34 %; net credit balance exceeds EUR 400 m
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Guidance for the financial year 2015: pre-tax profit in the lower double-digit
Against the backdrop of a challenging environment in the European steel market, the Salzgitter Group raised its pre-tax result by almost EUR500 million in the financial year 2014 and closed – in line with the forecast – with a result close to breakeven. The groupwide “Salzgitter AG 2015” restructuring program made a considerable contribution to this result. Achievements particularly noteworthy in this context included the turnaround at Peiner Träger GmbH (PTG) and the sustained positive earnings development achieved by the Salzgitter Mannesmann Precision Group. The program is increasingly bearing fruit in many other Group companies as well. A gratifying increase was reported in the cash flow from operating activities that lifted the net financial position as of December 31, 2014 to EUR 403 million, corresponding to an improvement of one third compared with the year-earlier reporting date. Together with an equity ratio of 34 %, Salzgitter AG enjoys a very sound balance sheet and the financial structure. Owing to weaker average selling prices for most steel products, the Salzgitter Group’s external sales that came in at EUR 9,040.2 million fell marginally short of the previous year’s figure (2013: EUR 9,309.8 million). The pre-tax result rose to EUR -15.2 million, representing an increase in a year-on-year comparison (2013: EUR -482.8 million). This figure comprises EUR 31.2 million in profit contribution from the Aurubis investment, as well as a balance of EUR -43.0 million largely from non-recurrent accounting-related effects. The after-tax result stood at EUR -31.9 million (2013: EUR -490.0 million), which brings basic earnings per share to EUR -0.64 (2013: EUR -9.11). The now positive return on capital employed (ROCE) rose to 1.8 % (2013: -10.5 %). Chief Executive Officer Prof. Dr.-Ing. Heinz Jörg Fuhrmann commented as follows: “The results of the financial year 2014 say more than many words. The ‘Salzgitter AG 2015’ project is being rigorously implemented, and the pre-tax loss in 2014 was less than a thirtieth of the 2013 result. We have halted cash outflow from the Group. This undisputed success should not detract from the fact that we still have our work cut out for us on the way to achieving allround satisfactory financial performance.” When considering the year-on-year comparisons, it should be noted that the key data of the financial year 2013 have been restated to take account of the new Group organization structure and changes in the consolidation methods applied to participating interests under IFRS 11. External sales by business unit (EUR million):
Earnings before taxes (EBT) by business unit (EUR million):
Guidance on the development of the macroeconomic situation is already fundamentally subject to a great deal of uncertainty, particularly in the current political and financial environment. The forward-looking statements below on the individual business units assume the absence of a recessionary development in Europe. Instead, we anticipate a relatively restrained economic recovery in the current financial year, with markets remaining fiercely contested Based on planning by the individual business units, and taking account of further positive effects from the “Salzgitter AG 2015” program, we assume the following for the Salzgitter Group in the year 2015: – an increase in sales to around EUR 9.5 billion, – a pre-tax profit in the lower double-digit million euro range and – a return on capital employed that is higher than the previous year’s figure. Additional information can be found in the full press release published today ( www.salzgitter-ag.com/en ). The annual report for the financial year 2014 will be published on March 27, 2015. As in recent years, 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 2015. The resulting fluctuation in the consolidated pre-tax result may, as current events show, 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 of steel products sold by the Strip Steel, Plate / Section Steel, Energy 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 and shorter contractual durations, on the procurement as well as 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 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 2015-02-27 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. The DGAP 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: | Regulated Market in Frankfurt (Prime Standard), Hanover; Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart | |
| End of News | DGAP News-Service |
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| 327451 2015-02-27 |