SALZGITTER (dpa-AFX) – In view of high inflation and rising energy prices, especially in Europe, the Salzgitter steel group is assuming that the environment will continue to deteriorate. Chief Financial Officer Burkhard Becker therefore expects “subdued business development” in the coming quarters. The thyssenkrupp competitor confirmed the annual forecast on Friday when the nine-month figures were presented thanks to the robust development, especially in the first half of the year.
Becker believes that Salzgitter is well prepared despite the declining steel market. “Due to the numerous uncertainties, a first look at the new financial year is cautious, but not pessimistic.” The company has expanded its efficiency program.
In the first nine months, Salzgitter’s external sales increased by 40 percent to around 9.8 billion euros, primarily due to price factors, as the company announced. Earnings before taxes almost doubled to EUR 1.15 billion. The group has thus almost brought in the harvest for 2022, as management continues to expect a pre-tax profit of 1 to 1.2 billion euros for this year. Sales are said to be around 13 billion euros. All in all, Salzgitter earned 945.8 million euros in the period from January to September, after 467.7 million a year earlier.
In the third quarter, the group felt the cooling of the steel market. Crude steel production and the quantities shipped in the trading business fell. Salzgitter was once again able to significantly increase sales to EUR 3.1 billion compared to the previous year, when EUR 2.6 billion were achieved. However, higher costs, especially for materials and personnel, caused profits to fall. In addition, there was a lower earnings contribution from the investment in the Aurubis copper group. Before taxes, earnings fell from almost 300 million to around 175 million euros. All in all, Salzgitter earned a good 163 million euros, after 236 million in the previous year.
The company still performed better than feared by analysts. At the start of trading, the share, which is listed on the SDAX, rose by 0.8 percent in a stable market. A trader called the confirmed sales forecast “reassuring”./nas/men/jha/
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