Salzgitter AG Reports Mixed Financial Performance in Q1 2024

Salzgitter AG, a prominent company in the steel and technology sectors, released its financials for the first quarter of 2024, reflecting diverse results across its operations. The company reported an EBITDA of €126.4 million and a pre-tax profit of €17.2 million. Despite the challenging economic climate particularly in Germany, the Technology Business Unit showed strong performance, potentially setting a record result for the year.

The external sales saw a decline of 10.2%, totalling €2.68 billion, largely due to decreased selling prices and a sluggish economy that impacted the steel-related sectors significantly. While the steel production and processing units experienced downturns, earnings from investments like Aurubis AG supported the overall financial results. Salzgitter AG's after-tax profit stood at €15.0 million, with earnings per share at €0.24.

The company's ongoing diversification strategy has been crucial in maintaining stability, as seen in the successful performance of its technology unit and investments. Despite the downturn, CEO Gunnar Groebler emphasized the importance of continued transformation efforts towards enhancing profitability and operational efficiencies. On the outlook, Salzgitter anticipates a challenging economic environment for the remainder of 2024, with expectations for modest financial improvements.