DGAP-News: Salzgitter Aktiengesellschaft / Key word(s): Quarter Results Salzgitter Aktiengesellschaft: Encouraging start to the year 2021-05-12 / 07:30 The issuer is solely responsible for the content of this announcement. =---------------------------------------------------------------------------------------------------------------------- - Pre-tax profit of EUR 117.3 million in the first quarter - Steady increase in the monthly results across almost all segments - Earnings forecast revised upward: profit before taxes of between EUR 300 million and EUR 400 million - SALCOS^(R): consistently forging ahead as a pioneer of low CO[2] steel production The Salzgitter Group generated earnings before taxes of EUR 117.3 million in the first quarter of the financial year 2021. Against the backdrop of a sustained recovery in the market and an uptrend in steel prices, this performance was especially attributable to the gratifying results of the Strip Steel and Trading business units, as well as a contribution of EUR 42.5 million from Aurubis AG, a participating investment included at equity (IFRS accounting) (Q1 2020: EUR -18.7 million). Almost all segments reported a steady increase in their monthly results over the course of the quarter. The Salzgitter Group's external sales remained stable compared with the year-earlier level (EUR 2,094.1 million; Q1 2020: EUR 2,108.3 million). Earnings before taxes came in at EUR 117.3 million (Q1 2020: EUR -31.4 million). An after-tax result that stood at EUR 76.6 million (Q1 2020: EUR -43.7 million) brings earnings per share to EUR 1.38 (Q1 2020: EUR -0.83) and return on capital employed to 13.2 % (Q1 2020: -2.4 %). The equity ratio amounted to 33.0 % (Q1 2020: 35.3 %). In addition, - compared with the respective costs of procurement - the hidden reserves not evident from the balance sheet from the acquisition of our participating investment in Aurubis AG and the CO[2] allowances purchased as a precautionary measure for the fourth period of the EU greenhouse gas emission trading scheme that commenced on January 1, 2021, meanwhile amount to over one billion euros. Chief Executive Officer Prof. Dr.-Ing. Heinz Jörg Fuhrmann on the current situation: "With Salzgitter AG remaining on track in the challenging past year through drawing on its own resources thanks to rigorous coronavirus management and the measures taken at an early stage to secure earnings and liquidity, I am pleased with the successful start to the year 2021! The quarterly results and improved business activity give us every reason to be optimistic about how the year will develop going forward. The key foundations have also been laid for the Salzgitter Group's long-term success: The company is robustly positioned in terms of its financial position and balance sheet, even as the coronavirus crisis diminishes. We have a well-diversified and balanced product portfolio in place. We will consistently forge ahead as a pioneer in low CO[2] steel production. As part of the "Wind Hydrogen (WindH2)" project that enables us to gain valuable experience in the important field of "hydrogen from renewable energies" essential to SALCOS^(R), we commissioned a 2.5 MW PEM electrolysis plant in March 2021. Germany's only cross-sector project at present will produce green hydrogen with electricity generated by wind power on the site of the steelworks in Salzgitter. Next week will already set another milestone: a groundbreaking ceremony to mark the start of the construction of a demonstration plant, that will realize the world's first direct reduction process making flexible use of natural gas and hydrogen." External sales by business unit (EUR million): Q1 2020 Q1 2021 Strip Steel 566.2 606.4 Plate / Section Steel 194.5 214.4 Mannesmann 295.9 256.6 Trading 703.4 673.3 Technology 310.3 300.9 Industrial Participations / Consolidation 38.0 42.5 Group 2,108.3 2,094.1
Earnings before taxes (EBT) by business unit (EUR million):
Q1 2020 Q1 2021 Strip Steel -6.8 43.1 Plate / Section Steel -4.2 -21.0 Mannesmann -4.6 -7.5 Trading 0.3 44.7 Technology 5.2 25.0 Industrial Participations / Consolidation -21.3 33.0 Group -31.4 117.3
Outlook In view of the good start to the year and the dynamic increase in rolled steel prices - nevertheless also with explicit reference to the still imminent risk of the coronavirus pandemic - we now anticipate the following for the Salzgitter Group in the financial year 2021:
- an increase in sales to more than EUR 8.5 billion,
- a pre-tax profit of between EUR 300 million and EUR 400 million, as well as
- a return on capital employed (ROCE) that is tangibly above the previous year's figure. The following links provide further information:
Quarterly Statement ( https://www.salzgitter-ag.com/en/investor-relations/news-and-publications/reports.html.
3 Months 2021:
SALCOS^(R): ( https:// www.salcos.salzgitter-ag.com/ Contact: Markus Heidler Head of Investor Relations Salzgitter AG Eisenhüttenstraße 99 38239 Salzgitter Phone +49 5341 21-6105 Fax +49 5341 21-2570 E-Mail ir@salzgitter-ag.de -----------------------------------------------------------------------------------------------------------------------
2021-05-12 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.de -----------------------------------------------------------------------------------------------------------------------
Language: English Company: Salzgitter Aktiengesellschaft 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 Indices: SDAX Listed: Regulated Market in Frankfurt (Prime Standard), Hanover; Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate Exchange EQS News ID: 1195379 End of News DGAP News Service =------------
1195379 2021-05-12
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(END) Dow Jones Newswires
May 12, 2021 01:31 ET (05:31 GMT)