FRANKFURT (dpa-AFX) - Salzgitter shares slumped during the course of the day on Tuesday due to a cut in the annual outlook. The share price fell by 11.7 percent to 21.50 euros after the steel group cut its pre-tax profit target to between 100 and 175 million euros. Previously, 250 to 300 million euros had been targeted. The share price reached its lowest level since October 2022.

The German economy was unable to match the upturn in other industrialized countries, the company said on Tuesday. Uncertainty regarding economic development in the second half of the year is increasing - with a direct impact on the Group's steel-related divisions in particular. In addition, Salzgitter now sees sales at 10.5 billion euros and thus at the lower end of the previously announced range of up to 11 billion euros.

One trader spoke of a "severe profit warning" with new targets well below market expectations. Baader Bank came to a similar conclusion. Its expert Christian Obst noted critically that the significant reduction in targets came just seven weeks after the announcement of the outlook.

According to Cole Hathorn from investment firm Jefferies Research, the economic situation in Germany is delaying the development of orders. This weighs particularly heavily on Salzgitter compared to the rest of the industry due to the stronger commitment in this country. For competitors such as ArcelorMittal or SSAB, this is of less importance. Their shares did not come under much pressure on Tuesday.

The slide in Salzgitter's share price continued an already weak performance this year. With a discount that now amounts to more than 23 percent, the shares are now among the ten weakest SDax stocks. The shares of Thyssenkrupp, which are included in the MDax, also fell less significantly on Tuesday by 1.6 percent. Their annual loss is now also around 23 percent./tih/gl/mis