In the first half of 2024, Salzgitter generated EBITDA of EUR 233.6 million and pre-tax profit of EUR 11.5 million, a significant decrease compared to the same period in 2023. The unfavorable economic conditions in Germany and across Europe had a particularly strong impact on the steel-related business units. However, the strong performance in the Technology Business Unit and the contribution from investments in Aurubis AG partially improved the overall financial picture.
External sales of rolled steel products amounted to EUR 5.84 billion in the first half of 2023, while price decreases led to a decrease in external sales to EUR 5.24 billion in the first half of 2024. EBITDA and pre-tax earnings also suffered a significant decrease due to lower selling prices; EBITDA decreased from EUR 429.3 million in the first half of 2023 to EUR 233.6 million in the first half of 2024. Similarly, profit before tax decreased from EUR 211.0 million to EUR 11.5 million.
In this difficult economic environment, the Salzgitter Group plans to take short-term measures to secure liquidity and stabilize earnings. New capital expenditure is being reviewed and distribution plans for existing investments are being reassessed. Birgit Potrafki, the Group's Chief Financial Officer, notes that their profitability improvement program "Performance 2026" has been put in place and they are recalibrating their course to achieve their targets.
For the financial year 2024, the Group is forecasting sales revenues of EUR 10 billion, EBITDA of EUR 400-500 million and a recovery in pre-tax results. In addition, return on capital is expected to decrease significantly compared to the previous year. The equity ratio remains at a solid level of 45.6%.
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