EQS-News: Salzgitter Group delivers positive results before special items in a tough market environment

• Technology Business Unit delivering record earnings, gratifying contribution from the Aurubis participation
• Liquidity measures taking effect
• Additional package of measures to improve earnings initiated to ensure future-proof positioning
• Earnings forecast for the 2025 financial year:
• EBITDA between € 350 million and € 550 million,
• Earnings before taxes between € - 100 million and € + 100 million
• Dividend proposal to the Annual General Meeting of € 0.20 per share

An economic recovery that has failed to materialize and an economic environment marked by high imports and uncompetitive energy costs weighed on the business performance of Salzgitter AG’s steel-related activities in the 2024 financial year. Running counter to these developments were the earnings contributions from the Technology Business Unit, our Aurubis AG participation as well as measures to support liquidity and earnings, the scope of which we once again expanded notably in the past financial year. Adjusted for extraordinary items totalling € - 406 million, Salzgitter AG generated positive earnings before taxes of € 109 million. The depreciation and restructuring expenses will relieve future periods.

The Salzgitter Group’s external sales decreased to € 10.0 billion (2023: € 10.8 billion) due to a decline in average revenues for steel products and a weak order book in the Steel Processing Business Unit. EBITDA dropped to € 445 million (2023: € 677 million) and earnings before taxes to € - 296 million (2023: € 238 million). The results include expenses of € 406 million for restructuring, impairments and other provisions. A contribution of € 184 million from the participating investment in Aurubis AG (IFRS accounting; 2023: € 40 million) accounted for at equity bolstered earnings. Based on an after-tax result of € - 348 million (2023: € 204 million), earnings per share was calculated at € - 6.51 (2023: € 3.70). The return on capital employed (ROCE) amounted to - 3.4 % (2023: 5.6 %). Net financial debt grew to € - 574 million (2023: € - 214 million) due to increased investing activities for the green transformation. The Executive Board and Supervisory Board will put forward a proposal to the Annual General Meeting of Shareholders on May 22, 2025 to distribute dividend of € 0.20 per share.

Gunnar Groebler, Salzgitter AG’s Chief Executive Officer:

“The economic challenges in Germany and the world show how important it is to systematically implement our strategy. We are forging ahead with futureproofing Salzgitter Group’s position, and the measures we have implemented are bearing fruit. We continue to rigorously implement our SALCOS® transformation program. Thanks to its modular structure, we are excellently positioned to make the right decisions at the right time in a controlled manner and without losing sight of market developments. We assume that the underlying conditions will remain challenging. Our expectations of policy makers to finally ensure significant reduction in energy costs, and to lower the high regulatory hurdles, are all the greater.”

Birgit Potrafki, Chief Financial Officer:

“We are focusing on the transformation and strengthening the competitiveness of Salzgitter AG. In spite of a tough economic environment, we have achieved a positive pre-tax result before extraordinary items of € 109 million. At the same time, our net financial debt has turned out lower than expected. This shows that our measures are having an impact. We have added to our current “Performance 2026” program and introduced measures to further improve our business units on a lasting basis. We have also initiated an economic program to support liquidity and earnings over the short term. These markers represent important investments in our future. 2024 was a year of important progress: We successfully completed the sale of Mannesmann Stainless Tubes. Our Technology Business Unit generated a record profit, and our participating investment in Aurubis AG delivered a significantly higher contribution to earnings than in previous years.”
 

External sales by business unit (EUR million):

	FY 2024	FY 2023
Steel Production	3,388.8	3,528.0
Steel Processing	1,576.3	2,126.5
Trading	3,056.7	3,313.0
Technology	1,803.9	1,647.4
Industrial Participations / Consolidation	186.0	175.6
Group	10,011.7	10,790.5

 

EBITDA by business unit (EUR million):

	FY 2024	FY 2023
Steel Production	186.2	295.5
Steel Processing	-78.6	227.4
Trading	-20.9	20.5
Technology	148.5	114.9
Industrial Participations / Consolidation	210.1	18.8
Group	445.2	677.0

 

Earnings before taxes (EBT) by business unit (EUR million):

	FY 2024	FY 2023
Steel Production	-60.9	75.8
Steel Processing	-391.4	144.7
Trading	-81.2	-13.6
Technology	93.5	81.1
Industrial Participations / Consolidation	143.8	-49.7
Group	-296.2	238.4

 

Outlook

There is still no end in sight to the stagnation of the German economy in spite of the planned special funds, although the economic stimulus measures put in place by the new federal government might have a positive impact as from the second half of 2025. However, uncertainty is on the rise, particularly with regard to the prospects for exports due to the statements on trade emanating from the new US government. Against this background, our expectations for the Salzgitter Group in the financial year 2025 are as follows:

• sales between € 9.5 billion and € 10.0 billion,
• EBITDA between € 350 million and € 550 million,
• earnings before taxes between € - 100 million and € + 100 million as well as
• slightly higher year-on-year return on the capital employed (ROCE).

As in recent years, please note that opportunities and risks from currently unforeseeable trends in selling prices, input material prices and capacity level developments, as well as exchange rate fluctuations, may considerably affect business performance over the course of the financial year 2025.

 

The full results for the 2024 financial year are published at:

https://www.salzgitter-ag.com/de/investor-relations/news-publikationen.html.

 

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