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    SZG   DE0006202005

SALZGITTER AG

(SZG)
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Delayed Xetra  -  05/18 11:35:04 am EDT
35.42 EUR   +0.80%
05/16SALZGITTER AG : JP Morgan remains Neutral
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05/13SALZGITTER AG : Deutsche Bank reiterates its Neutral rating
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05/12SALZGITTER AG : Jefferies gives a Buy rating
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PRESS RELEASE : Salzgitter Aktiengesellschaft: Financial Year 2020: By no means a lost year!

03/15/2021 | 05:03am EDT
DGAP-News: Salzgitter Aktiengesellschaft / Key word(s): Annual Report/Sustainability 
Salzgitter Aktiengesellschaft: Financial Year 2020: By no means a lost year! 
2021-03-15 / 11:00 
The issuer is solely responsible for the content of this announcement. 
=---------------------------------------------------------------------------------------------------------------------- 
- Decarbonization offensive expedited 
- Strategic investment projects systematically pursued 
- Financial year 2021: pre-tax profit envisaged between EUR 150 million and EUR 200 million 
The Salzgitter Group delivered a pre-tax result of EUR -196.4 million in the financial year 2020 that was determined by 
the Corona pandemic and its severe disruption to society and the economy at large. Following a plunge in order intake 
caused by economic restrictions imposed on a global scale in the second quarter, we responded swiftly and resolutely 
with counteracting measures to secure earnings and liquidity. After a period of stabilization over the summer, the 
Strip Steel Business Unit showed the first strong signs of recovery in the final quarter that have held steady since 
then. 
The Group's external sales declined to EUR 7,090.8 million due above all to the drop in average selling prices for rolled 
steel products and lower shipment volumes (2019: EUR 8,547.3 million). The pre-tax result came in at EUR -196.4 million 
thanks to rigorous crisis management and the recent uptrend in performance, particularly in the Strip Steel, Trading 
and Technology business units, that exceeds the previous year's level (EUR -253.3 million). The result also includes 
EUR 18.9 million in net income from restructuring provisions (2019: EUR -56.1 million) and a very gratifying contribution 
of EUR 104.0 million from the participating investment in Aurubis AG accounted for using the equity method (2019: EUR 99.5 
million, including EUR 27.8 million in income from an accounting adjustment in connection with the acquisition of 
shares). Earnings after taxes of EUR -273.9 million (2019: EUR -237.3 million) comprise EUR 71.0 million in additional tax 
expenses for capital gains tax to be paid in connection with the ruling of the Federal Fiscal Court (Bundesfinanzhof) 
issued on structured securities lending in 2016. Salzgitter AG has lodged an appeal against this repayment. Earnings 
per share dropped to EUR -5.13 (2019: EUR -4.46), return on capital employed (ROCE) improved compared with the previous 
year's figure but remained in negative territory (-3.9 %; 2019: -5.8 %). Against this backdrop, we will not be paying 
any dividend for the past financial year. With signs of a significant improvement in the financial situation in the 
current year, we expect to be able to resume dividend distribution again in 2022. 
With an equity ratio of 32.5 % (2019/12/31: 34.1 %), Salzgitter AG's balance sheet remains sound. In addition, the 
hidden reserves not evident from the balance sheet from the acquisition of our participating investment in Aurubis AG 
and the CO2 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 range in the upper triple-digit million euro range. 
Chief Executive Officer Prof. Dr.-Ing. Heinz Jörg Fuhrmann on the financial year 2020: 
"The year 2020 presented us all with an exceptional situation: With the onset of the coronavirus pandemic, also in 
Europe, daily life as we knew it changed overnight. In the face of all these challenges, this exceptional year has made 
two things patently clear: Firstly, our corporate strategy geared to the long term and to a well-balanced portfolio has 
proven its worth again. And secondly, our corporate culture that is infused with identification, motivation and 
discipline works. This is evident in the swift implementation of a slew of highly diverse urgent measures upon the 
outbreak of the pandemic in Group companies across the globe, while keeping operations up and running. This was only 
possible thanks to the exceptional dedication of our employees, also under additional burdens and pressure. Despite the 
huge challenges, we were therefore able to sustain our company's liquidity without injections of external capital, 
continue our work on the two strategically important major projects - the third hot dip galvanizing in Salzgitter and 
the new heat treatment line in Ilsenburg - and push ahead with our decarbonization offensive through implementing the 
"Wind Hydrogen Salzgitter", "Green Industrial Hydrogen 2.0" and "Green Strip Steel" projects. The financial year 2020 
was therefore not a lost year for the Salzgitter Group. Quite the opposite! For us it is a source of confidence and 
assurance of being able to master the tasks that lie ahead." 
Outlook 
With explicit reference to the still imminent, virtually unquantifiable risk of the Corona pandemic, we generally 
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 150 million and EUR 200 million, and 
- a return on capital employed (ROCE) that is tangibly above the previous year's figure. 
Decarbonization 
We are stepping up to the challenging goals of the European emission trading system to reduce CO[2] with our SALCOS(R) 
(SAlzgitter Low CO[2] Steelmaking) concept. This concept covers the implementation of all technical measures required 
by a significant and gradual reduction of the CO[2] emissions in steel production at the Salzgitter site, while 
harnessing existing production facilities to the greatest extent possible. For the integrated steel production we are 
targeting reductions in CO[2] emissions of 30 % by 2030 and of 95 % by 2050. Within the context of this concept, 
Salzgitter AG initiated the "Wind Hydrogen" and the "GrInHy / GrInHy2.0" (= Green Industrial Hydrogen) projects. 
Last week, we commissioned "Wind Hydrogen Salzgitter - WindH2", Germany's only cross-sector project that will in future 
produce green hydrogen with electricity from wind power. Consequently, we have taken an important and exemplary step on 
the path to decarbonizing the steel industry. In addition, Salzgitter AG has been working together with its partners 
since 2016 on the EU "GrInHy" research projects to find new ways of generating hydrogen efficiently. 
In an initial step, Salzgitter Flachstahl GmbH (SZFG) will use "green hydrogen" for its annealing process, thereby 
replacing hydrogen produced from natural gas. At a later stage, the direct reduced iron (DRI) plant scheduled to go on 
line in the first half of 2022 is also to be supplied. Federal Environment Minister Svenja Schulze gave us the funding 
approval for the construction of these facilities at the start of December 2020. The new plant represents another 
milestone on the course to realizing SALCOS^(R). Further knowledge will be gained from the operations, the aim being to 
enable the production of efficient and low CO[2] directly reduced iron on a large scale in a few years' time. 
Low CO[2] green steel slabs have been produced in our Peine mini mill since the end of 2020 for subsequent processing 
by SZFG into hot and cold strip in a defined range of various dimensions and grades. These steel grades have met with 
strong interest from customers operating in a range of different sectors. As Europe's first steel producer, Salzgitter 
AG has obtained two conformity statements certified in line with TÜV SÜD's VERIsteel process. The process provides 
proof of product-specific CO[2] emissions in steel production and flanks the process of decarbonization. As a result, 
the CO[2] footprint of slabs is to be reduced by more than 75 %. 
The following links provide further information: 
Annual Report 2020               ( https://www.salzgitter-ag.com/en/investor-relations/news-and-publications/ 
                                 reports.html. 
Non-Financial Report on the 
Group                            ( https://www.salzgitter-ag.com/en/corporate-responsibility.html 
SALCOS^(R):                      ( https:// www.salcos.salzgitter-ag.com/ 
GrInHy:                          ( https:// www.green-industrial-hydrogen.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 ----------------------------------------------------------------------------------------------------------------------- 

2021-03-15 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:  1175369 
 
End of News   DGAP News Service 
=------------ 

1175369 2021-03-15

(END) Dow Jones Newswires

March 15, 2021 06:02 ET (10:02 GMT)

Stocks mentioned in the article
ChangeLast1st jan.
AURUBIS AG -0.82% 86.66 Delayed Quote.-1.59%
SALZGITTER AG 0.80% 35.42 Delayed Quote.12.73%
SDAX -1.41% 13191.64 Delayed Quote.-19.64%
SDAX PERFORMANCE INDEX 9:00-20:00 -0.74% 13257.98 Delayed Quote.-19.21%
All news about SALZGITTER AG
05/16SALZGITTER AG : JP Morgan remains Neutral
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05/12SALZGITTER AG : JP Morgan remains Neutral
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05/12Salzgitter AG Reports Earnings Results for the First Quarter Ended March 31, 2022
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Analyst Recommendations on SALZGITTER AG
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Financials
Sales 2022 12 004 M 12 597 M 12 597 M
Net income 2022 1 004 M 1 054 M 1 054 M
Net Debt 2022 351 M 368 M 368 M
P/E ratio 2022 1,91x
Yield 2022 2,21%
Capitalization 1 916 M 2 010 M 2 010 M
EV / Sales 2022 0,19x
EV / Sales 2023 0,19x
Nbr of Employees 23 956
Free-Float 43,4%
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Number of Analysts 13
Last Close Price 35,42 €
Average target price 39,54 €
Spread / Average Target 11,6%
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Managers and Directors
Gunnar Groebler Chief Executive Officer
Burkhard Becker Chief Financial Officer
Heinz-Gerhard Wente Chairman-Supervisory Board
Uwe Kruse Chief Information Officer & Head-Strategy
Roland Flach Member-Supervisory Board
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