DGAP-News: Salzgitter Aktiengesellschaft
/ Key word(s): Quarter Results
- Earnings before taxes (EBT) quadruple to € 465.3 million
In the first quarter of 2022, the Salzgitter Group generated a pre-tax profit of € 465.3 million, the highest quarterly operating result in the history of the company. The prices of rolled steel products at a record level sent profit up by leaps and bounds for the Steel Production and Trading business units that were the key drivers behind the gratifying earnings trend in the period under review. The Steel Processing and Technology business units, along with Industrial Participations / Consolidation, also contributed positive results.
The Salzgitter Group’s external sales saw price-induced growth of 60 % to € 3,349.9 million (Q1 2021: € 2,094.1 million). The pre-tax profit quadrupled to € 465.3 million in a year-on-year comparison
With a view to the current geopolitical situation, Gunnar Groebler commented as follows: “With the deepest sadness, we have to acknowledge that the war in Ukraine has escalated. We want to play a part by contributing our help wherever we can. Along with financial support, we would like to give the people who have fled the war short and medium-term prospects pending their return to their home country. Upon an initiative launched by Salzgitter AG, the German steel industry plans to offer Ukrainian refugees work and the possibility of further training and qualification. Cities and municipalities are also to participate in this “Steel – Model for Action” initiative.”
“The record profit generated in the first quarter of 2022 is not only a consequence of the current exceptional market situation, but also the result of the rigorously implemented optimization of our Group that has been conducted for years,” says Chief Financial Officer Burkhard Becker commenting on the quarterly figures. "With a look to the remainder of the year 2022, we are optimistic, but are keeping a very close eye on the risks resulting from the current geopolitical situation, especially price and energy supply risks,” Becker says.
Earnings before taxes (EBT) by business unit (EUR million):
Thanks to the strong first-quarter we now anticipate the following for the Salzgitter Group in the financial year 2022:
- an increase in sales to just under € 11 billion,
- a pre-tax profit (EBT) of between € 750 million and € 900 million, and
- a return on capital employed that is around the previous year's level.
In the context of the above, we have taken commodity and energy costs as well as steel prices at the current level as a basis and assume an ongoing unrestricted availability of natural gas as a precondition for maintaining production. Sustained supply and capacity bottlenecks on the procurement markets, compounded by geopolitical tensions, give rise to uncertainty for the anticipated development. We make explicit reference to the currently virtually unquantifiable forecast risks in connection with the Ukraine war.
The complete report released on the results of the first quarter of 2022 can be viewed at: https://www.salzgitter-ag.com/en/investor-relations/news-and-publications.html
Head of Investor Relations
Phone +49 5341 21-6105
Fax +49 5341 21-2570
12.05.2022 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
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