SALZGITTER AG
DGAP-Ad-hoc: Salzgitter AG / Key word(s): Preliminary Results/Forecast
According to the still preliminary figures now available, the Salzgitter Group generated a pre-tax profit of EUR 238.0 million in 2017 (FY 2016: EUR 53.2 million), its highest since 2008. The excellent performance of the Strip Steel and Trading business units, along with the continued successful implementation of the Group's internal programs, made major contributions to this performance. The result includes a contribution of EUR 79.3 million anticipated from the Aurubis investment (FY 2016: EUR 19.1 million) as well as the sum total of EUR -82.8 million in burdens on earnings from measures initiated for structural improvements under the groupwide "FitStructure SZAG" optimization program as well as accounting adjustments of non-current assets of Salzgitter Mannesmann Grobblech GmbH (special items FY 2016: EUR -2.3 million). The result is therefore above the earnings forecast for a pre-tax profit of between EUR 175 million and EUR 225 million most recently affirmed on November 11, 2017. The Salzgitter Group's external sales (EUR 9.0 billion; FY 2016: EUR 7.9 billion) rose substantially, above all on the back of the higher average selling prices of steel products. Given the good start to the new financial year, with market conditions brightening in some areas of business, but remaining challenging overall, and additional positive effects of the measures and growth programs, we assume the following for the Salzgitter Group in 2018: - a marginal increase in sales to above EUR 9 billion, - a pre-tax profit of between EUR 200 million and EUR 250 million, as well as - a return on capital employed that is stable compared with the previous year's figure. The forward-looking statements assume the absence of renewed recessionary developments in Europe. Instead, we anticipate an at minimum stable trend for our fiercely contested main markets in the current financial year. As in recent years, please note that opportunities and risks from currently unforeseeable trends in selling prices, input material prices and capacity level developments, as well as exchange rate fluctuations, may considerably affect performance in the course of the financial year 2018. The resulting fluctuation in the consolidated pre-tax result may be within a considerable range, either to the positive or to the negative. The dimensions of this range become clear if one considers that, with around 12 million tons p.a. of steel products sold by the Strip Steel, Plate / Section Steel, Mannesmann and Trading business units, an average EUR 25 change in the margin per ton is sufficient to cause a variation in the annual result of more than EUR 300 million. Moreover, the accuracy of the company's planning is restricted by the volatile cost of raw materials and shorter contractual durations, on the procurement as well as on the sales side. The 2017 annual financial statements are currently being audited by the external auditor and must subsequently be adopted by the Supervisory Board. The key figures for the financial year 2017 and further details will be published, as planned, on February 28, 2018.
30-Jan-2018 CET/CEST The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. |
| Language: | English |
| Company: | Salzgitter AG |
| Eisenhüttenstraße 99 | |
| 38239 Salzgitter | |
| Germany | |
| Phone: | +49 5341 21-01 |
| Fax: | +49 5341 21-2727 |
| E-mail: | info@salzgitter-ag.de |
| Internet: | www.salzgitter-ag.de |
| ISIN: | DE0006202005 |
| WKN: | 620200 |
| Listed: | Regulated Market in Frankfurt (Prime Standard), Hanover; Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate Exchange |
| End of Announcement | DGAP News Service |
649607 30-Jan-2018 CET/CEST
