Even without support from the overall economy, Salzgitter aims to achieve a turnaround in profits in the current year. "The planned public investment and infrastructure programs have not yet led to a significant economic upturn," the company stated. However, EU trade protection measures are expected to provide some tailwind. "Overall, we expect only a moderate improvement in economic conditions." Nevertheless, revenue is projected to rise to around 9.5 billion euros. EBITDA is forecast between 500 and 600 million euros, which should result in a pre-tax profit of 75 to 175 million euros. However, the effects of the exchangeable bond issued in October—which allows Salzgitter to gradually reduce its stake in Aurubis—are not included in this forecast.
The planned acquisition of Hüttenwerke Krupp Mannesmann (HKM) and its implications are also not yet reflected in the planning. Salzgitter currently holds a 30 percent stake in HKM but has agreed with co-owner Thyssenkrupp to take over its 50 percent share. The third owner, French company Vallourec, is also willing to sell. Steelmaker Thyssenkrupp had previously threatened to shut down HKM if it could not divest its stake.
(Report by Alexander Hübner. Edited by Olaf Brenner. For inquiries, please contact our editorial team at berlin.newsroom@thomsonreuters.com (for politics and economy) or frankfurt.newsroom@thomsonreuters.com (for business and markets).)
