The weak economic environment impacting the European steel industry, increased imports, and uncompetitive energy costs negatively affected the company's profitability. External sales decreased by 0.7% to EUR 7.7 billion due to price reductions in rolled steel products. As a result, EBITDA decreased to EUR 320.6 million (a decrease of EUR 255.4 million) and earnings before tax to EUR 141.2 million (a decrease of EUR 254.3 million). The loss after tax amounted to EUR 197.7 million and earnings per share to EUR 3.74. The financial results were impacted by the EUR 107.6 million contribution from the investment in shares of Aurubis AG and the EUR 150 million impairment of the Mannesmann Precision Tubes Group. The ROCE amounted to -1.6%, while the equity ratio remained at 43.3%.
The ‘Salzgitter AG 2030’s strategy intends to transform steel production while maintaining its current competitiveness. With the ‘Performance 2026’ program, it plans to improve profitability and secure liquidity through short-term measures.
Salzgitter AG estimates sales of EUR 9.5-10 billion, as well as EBITDA of EUR 275-325 million and a loss before tax of EUR 275-325 million for the year 2024. ROCE is expected to be lower y/y. Fluctuations in raw material costs, precious metal prices, and exchange rates are expected to have a significant impact on the year-end results.
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