Salzgitter AG

  • WKN: 620200
  • ISIN: DE0006202005
  • Land: Germany

Nachricht vom 12.08.2019 | 07:30

Salzgitter AG: Salzgitter Group generates a pre-tax profit of EUR 145 million in the first half year

DGAP-News: Salzgitter AG / Key word(s): Half Year Results

12.08.2019 / 07:30
The issuer is solely responsible for the content of this announcement.


 

- All business units deliver positive results
- Gratifying contribution of internal programs of measures
- Profit forecast for the financial year 2019 affirmed

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.

"Following the best opening quarter since 2008, the gradual deterioration in framework conditions is now having an effect on the results of the Salzgitter Group as well. Our internal development and optimization endeavors consistently carried out over the past years have once again proved to be correct in this situation and serve to mitigate the effect of the gloomier market. We will be concertedly and decisively shaping the future of Salzgitter AG with new stimulus. Our imperturbable strategy that is anchored in sustainability is - aside from the large volume of CO2 certificates acquired as a precautionary measure for the fourth period of the EU's trading system for greenhouse gas emission allowances - also reflected in the realization of the 'Hot Dip Galvanizing Line 3' investment project that will enable Salzgitter Flachstahl GmbH to reinforce its market position as a producer of premium products," explains Chief Executive Officer Prof. Dr.-Ing. Heinz Jörg Fuhrmann.

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 driver 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). Earnings per share therefore came in at EUR 1.73 (H1 2018: EUR 2.45) and return on capital employed at 7.9 %(H1 2018: 12.8 %).

External sales by business unit (EUR million):

  H1 2019 H1 2018
Strip Steel 1,175.5 1,242.7
Plate / Section Steel 442.3 554.5
Mannesmann 582.3 563.4
Trading 1,578.3 1,548.8
Technology 656.9 610.0
Industrial Participations / Consolidation 91.0 97.6
Group 4,526.2 4,617.1
 

Earnings before taxes (EBT) by business unit (EUR million):

  H1 2019 H1 2018
Strip Steel 60.3 109.7
Plate / Section Steel 0.6 22.0
Mannesmann 9.0 12.3
Trading 4.1 25.0
Technology 16.1 20.5
Industrial Participations / Consolidation 55.1 9.1
Group 145.3 198.6
 

The decline in the net financial position (EUR-164.4 million; 2018/06/30: EUR 239.5 million) resulted principally from the increase in working capital on the back of higher raw material prices, the replenishment of the participation in Aurubis AG, as well continuing our strategic investment projects such as the new heat treatment line at the Ilsenburg location. With an equity ratio of 34.8 % (2018/06/30: 36.3 %), Salzgitter AG enjoys a sound balance sheet, also after a reduction in the actuarial rate applicable to pension provisions to only 1.00 %. The successful new issuance of a bonded loan resulted in a temporary increase in the balance sheet total, specifically in cash and cash equivalents and liabilities of EUR 200 million. An increase virtually the same in assets and liabilities in an amount of EUR 128 million due to the application of the new IFRS 16 Leases is cash neutral.

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.

We make reference to the fact that imponderables, including changes in the cost of raw materials, precious metal prices and exchange rates, along with global trade policy measures, may have a considerable impact over the course of the financial year 2019. The dimensions of this range become clear if one considers that, with around 6 million tons of steel products to be sold by the Strip Steel, Plate / Section Steel, Mannesmann and Trading business units by the end of the year, an average EUR 10 change in the margin per ton is already sufficient to cause a variation in the annual result of EUR 60 million.

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 ir@salzgitter-ag.de


12.08.2019 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.
Archive at www.dgap.de



show this

Anleihe im Fokus

„Semper idem Underberg AG: Emission neuer Unternehmensanleihe 2019/2025“

- Emissionsvolumen: bis zu 60 Mio. Euro
- Anleihenumtausch: 23.010. bis 06.11.2019
- Neuzeichnung: 07.11. bis 12.11.2019
- ISIN: DE000A2YPAJ3 / WKN: A2YPAJ
- Stückelung / Mindestanlage: 1.000 Euro
- Zinssatz (Kupon):
Liegt in einer Spanne von 4,00 % bis 4,25 % p.a.
- Laufzeit: 6 Jahre
- Zinszahlung: jährlich, jeweils am 18. November (nachträglich), erstmals am 18. November 2020
- Rückzahlungskurs: 100%
- Fälligkeit: 18. November 2025
- Listing: Listing im Freiverkehr (Open Market) der Frankfurter Wertpapierbörse vorgesehen

GBC-Fokusbox

Expedeon AG mit attraktiver Produktpipeline

Durch die konsequente Fortsetzung der „Grow, Buy & Build“-Strategie hat die im Bereich der Entwicklung und Vermarktung von DNA-Technologien, Proteomik- und Antikörper-Konjugations-Anwendungen tätige Expedeon AG das Umsatzniveau angehoben und auf operativer Ergebnisebene zugleich den Break-Even nachhaltig überschritten. Für die kommenden Perioden ist der Ausbau der Umsatzerlöse mit den bestehenden Produkten geplant. Darüber hinaus verfügt die Expedeon AG über eine attraktive Produktpipeline mit hohem Umsatzpotenzial. Unser Kursziel liegt bei 3,20 € je Aktie. Das Rating lautet KAUFEN.

News im Fokus

Continental AG: Continental AG berücksichtigt im dritten Quartal 2019 nicht zahlungswirksame Wertminderungen und Restrukturierungsrückstellungen

22. Oktober 2019, 13:34

Aktuelle Research-Studie

CO.DON AG

Original-Research: CO.DON AG (von Sphene Capital GmbH): Buy

21. Oktober 2019