December 03, 2008

Salzgitter announces 2007 results

Salzgitter Group announced that in the financial year 2007, it has set a new record high for consolidated sales, thereby considerably exceeding the already excellent operating result of the previous year. Along with the ongoing exceptionally good market for rolled steel products and tubes, the consistent implementation of further growth strategy measures contributed to these gratifying developments.

Salzgitter said that its external group sales rose by 21 % YoY to EUR 10.19 billion. The first time consolidation of Klöckner Werke AG, acquired at the start of the second half year, in the new Technology Division and other companies in the Tubes Division contributed EUR 665 million to this result. Earnings before tax of EUR 1,314 million and after tax profit of EUR 905 million.

Salzgitter said that “Good capacity utilization in steel processing sectors raised the demand for steel further in 2007. The total sales of the Steel Division climbed EUR 617 million to EUR 3,967 million. Primarily due to higher selling prices the sales of the large steel companies grew significantly. The Steel Division generated an excellent pre tax profit of EUR 749.4 million, thereby outperforming the previous year’s figure of EUR 433.8 million by 73 %. Against the backdrop of excellent market conditions, the consistent leverage of profitability improvement potential was also a contributing factor.”