German Salzgitter Group has delivered the highest operating result for a first half-year in the company’s history in H1 of 2022. Rolled steel product prices meanwhile running at a record level sent profit up by leaps and bounds for the Steel Production, Steel Processing and Trading business units that were the key drivers behind the exceptional earnings trend in the period under review. The Technology business unit, along with the industrial participations, however, also contributed positive results.The Salzgitter Group’s external sales saw price-induced growth of 50% to EUR 6.637 billion, EBITDA) increased to EUR 1.139 billion, while the pre-tax result even more than trebled to EUR 971 million. This figure includes a contribution of EUR 84 million from the participating investment in Aurubis AG accounted for using the equity method. After-tax profit of EUR 781 million surged by 238% YoY Salzgitter AG’s Chief Executive Officer Mr Gunnar Groebler said “The course of the year to date has proved to be exceptional for several reasons. On the one hand, we are reporting by far the best operating result for a half-year in the history of Salzgitter AG while, on the other, Salzgitter AG’s Supervisory Board has approved funds of more than EUR 700 million for the first development stage of the SALCOS program, thereby marking the largest investment since the company’s listing in 1998. Thanks to this ground-breaking decision, we will be able to place the first contracts with plant engineers as early as the third quarter of this year. This serves once more to underscore our pioneering role and our ambitions in the field of low carbon steel production. We want to be delivering the first volumes produced via the SALCOS route to our customers even toward the end of 2025. Full transition of the integrated steelworks in Salzgitter to low carbon crude steel production is to have been completed by 2033. This transition would put us in a position to save up to 95 % of the carbon emissions of around 8 million tons produced every year, which approximates to 1 % of Germany’s carbon emissions.”Salzgitter said “As a result of steel prices consolidating as from the second quarter, we expect the above-average margins to narrow as the year progresses. While also factoring in the geopolitical situation, we therefore continue to anticipate the following for the Salzgitter Group in the financial year 2022Sales in the region of EUR 13 billionEBITDA of EUR 1.4-1.6 billion,EBT of EUR 1.0-1.2 billion”
German Salzgitter Group has delivered the highest operating result for a first half-year in the company’s history in H1 of 2022. Rolled steel product prices meanwhile running at a record level sent profit up by leaps and bounds for the Steel Production, Steel Processing and Trading business units that were the key drivers behind the exceptional earnings trend in the period under review. The Technology business unit, along with the industrial participations, however, also contributed positive results.The Salzgitter Group’s external sales saw price-induced growth of 50% to EUR 6.637 billion, EBITDA) increased to EUR 1.139 billion, while the pre-tax result even more than trebled to EUR 971 million. This figure includes a contribution of EUR 84 million from the participating investment in Aurubis AG accounted for using the equity method. After-tax profit of EUR 781 million surged by 238% YoY Salzgitter AG’s Chief Executive Officer Mr Gunnar Groebler said “The course of the year to date has proved to be exceptional for several reasons. On the one hand, we are reporting by far the best operating result for a half-year in the history of Salzgitter AG while, on the other, Salzgitter AG’s Supervisory Board has approved funds of more than EUR 700 million for the first development stage of the SALCOS program, thereby marking the largest investment since the company’s listing in 1998. Thanks to this ground-breaking decision, we will be able to place the first contracts with plant engineers as early as the third quarter of this year. This serves once more to underscore our pioneering role and our ambitions in the field of low carbon steel production. We want to be delivering the first volumes produced via the SALCOS route to our customers even toward the end of 2025. Full transition of the integrated steelworks in Salzgitter to low carbon crude steel production is to have been completed by 2033. This transition would put us in a position to save up to 95 % of the carbon emissions of around 8 million tons produced every year, which approximates to 1 % of Germany’s carbon emissions.”Salzgitter said “As a result of steel prices consolidating as from the second quarter, we expect the above-average margins to narrow as the year progresses. While also factoring in the geopolitical situation, we therefore continue to anticipate the following for the Salzgitter Group in the financial year 2022Sales in the region of EUR 13 billionEBITDA of EUR 1.4-1.6 billion,EBT of EUR 1.0-1.2 billion”
