Germany's second-largest steel group Salzgitter is lowering its forecast for the financial year 2024 following a decline in sales and profits in the first half of the year and the lack of an economic upturn.

Salzgitter now expects sales of around ten billion euros, the company announced on Tuesday. The Group had previously forecast around 10.5 billion euros. The operating profit (EBITDA) is now expected to be in a range between 400 and 500 million euros, compared to 550 to 625 million euros previously. In addition, Salzgitter expects a balanced pre-tax result, compared to a previously targeted pre-tax profit of between 100 and 175 million euros. The return on capital employed will be "visibly below the previous year's level". Last week, competitor Thyssenkrupp had already lowered its forecast again.

(Report by Matthias Inverardi, edited by Philipp Krach. If you have any questions, please contact our editorial team at berlin.newsroom@thomsonreuters.com (for politics and the economy) or frankfurt.newsroom@thomsonreuters.com (for companies and markets).)