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PRESS RELEASE: Salzgitter AG: Key data for the financial year 2013 - Crisis in Europe's industry impacts the financial year 2013 - focus on the consistent implementation of 'Salzgitter AG 2015'

DGAP-News: Salzgitter AG / Key word(s): Final Results Salzgitter AG: Key data for the financial year 2013 - Crisis in Europe's industry impacts the financial year 2013 - focus on the consistent implementation of 'Salzgitter AG 2015'

28.02.2014 / 07:30

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- Sales markets for rolled steel, tubes and pipes in generally poor shape in 2013; idle capacities generate fierce price competition

- Implementation of restructuring program "Salzgitter AG 2015" underway, with the first measurable successes

- Equity ratio of around 40 %; net credit balance of EUR 300 million

- Guidance for the financial year 2014: sales growth and a significant improvement in pre-tax result compared with 2013

The structural crisis prevailing in the European steel industry presented the Salzgitter Group with special challenges in the financial year elapsed. Increasingly fierce price-led competition in the European market, combined with the drastic capacity underutilization of the large-diameter tubes business, incurred a significant impact on earnings. In addition, impairment at Peiner Trger GmbH, along with non-recurrent restructuring expenses, burdened earnings before taxes in an amount of EUR 240 million. Against this backdrop, the "Salzgitter AG 2015" program, initiated back in the autumn of 2012 and implemented as from the second half of 2013, will be assigned the highest priority in the future as well. The first measurable successes create additional motivation for forging ahead with the comprehensive measures. An equity ratio of almost 40 % and a net credit balance of EUR 300 million as of December 31, 2013, form a sound financial basis for this.

The Group's external sales declined to EUR 9,244.2 million (2012: EUR 10,397.2 million) owing to lower average selling prices for many steel products and reduced shipment volumes in the Tubes and Trading divisions. All in all, the Salzgitter Group reported a pre-tax result of EUR -477.8 million (2012: EUR -29.4 million). This figure includes restructuring expenses of EUR 54.6 million incurred by the "Salzgitter AG 2015" program, impairment of EUR 185.0 in the sections business, as well as EUR -55.4 million in negative after-tax contribution (2012: +EUR 55.5 million) by Aurubis AG, a participation included at equity. The after-tax result stood at EUR -489.6 million (2012: EUR -99.8 million), which brings earnings per share to EUR -9.10 (2012: EUR -1.89). Return on capital employed (ROCE) stood at -10.5 % (2012: 1.3 %).

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PRESS RELEASE: Salzgitter AG: Key data for the financial year 2013 - Crisis in Europe's industry impacts the financial ...