euro adhoc: Salzgitter AG / Quarterly or Semiannual Financial Statements / Salzgitter Group reports a leap in profits in Q1 2005 (E)

---------------------------------------------------------------------
Disclosure announcement transmitted by euro adhoc.
The issuer is responsible for the content of this announcement.
---------------------------------------------------------------------

13.05.2005

Thanks to strong global demand and the generally satisfactory level
of prices - achieved in stages since the beginning of last year - for
rolled steel products and tubes, the Salzgitter Group recorded
exceptional rises in sales and profits in the first quarter of 2005
over the same period in 2004 which had marked the start of the
present favorable situation in the steel market.

Consolidated external Group sales rose by 36 % to EUR 1.76 billion
(Q1 2004: EUR 1.30 billion). Group pre-tax profits at EUR 253.5
million represented a new quarterly high (Q1 2004: EUR 26.2 million).
Profits after tax of EUR 173.5 million (Q1 2004: EUR 20.1 million)
and an annualized return on capital employed (ROCE) of 56.5 % (Q1
2004: 9.3 %) clearly illustrate the exceptionally positive business
situation in comparison with the same period last year.

External sales at the various divisions in EUR million:

Q1 2005        (Q1 2004) 
Steel                525            (401)   
Tubes                309            (206) 
Trading              797            (569) 
Services             77             (77) 
Processing           57             (47) 
Group                1,765          (1,300)

Pre-tax results at the various divisions in EUR million:

Q1 2005        (Q1 2004)
Steel                167.7          (11.5)
Tubes                77.0           (5.6)
Trading              26.3           (11.2)
Services             5.7            (4.8)
Processing           -3.4           (-10.7)
Consolidation/Others -19.8          (3.8)
Group                253.5          (26.2)

On the basis of current information and expectations regarding the
development in the input and output markets and the situation in
general, and taking into account the effects of the profitability
improvement program, for the current year the Salzgitter Group should
return a pre-tax result in the mid three-digit million range. We
expressly point out that opportunities and risks resulting from at
present unforeseeable variations in product revenues, input material
prices and capacity utilization as well as exchange rate fluctuations
may have a significant effect on developments in the financial year
2005, especially in the second half. Other positive or negative
effects may derive from the valuation of inventories in accordance
with modified IFRS standards or from the application of the latter.
The resulting fluctuation margin in consolidated pre-tax earnings
resulting from all mentioned factors likewise falls within a
triple-digit million spread.

For further details and an outlook on the current financial year,
please refer to today’s press release (see www.salzgitter-ag.de).

Further inquiry note:
Bernhard Kleinermann
Tel.: +49 (0) 5341-21-3783
E-Mail: [email protected]
Tel.:49 (0) 5341-21-01
FAX: +49 (0) 5341-21-2727
Email: [email protected]

end of announcement euro adhoc 13.05.2005 06:30:00
---------------------------------------------------------------------

emitter: Salzgitter AG
Eisenhüttenstrasse 99
D-38239 Salzgitter
phone: +49 (0) 5341-21-01
FAX: +49 (0) 5341-21-2727
mail: [email protected]
WWW: http://www.salzgitter-ag.de
ISIN: DE0006202005
indexes:
stockmarkets:
sector: Iron & Steel
language: English

OTS-ORIGINALTEXT UNTER AUSSCHLIESSLICHER INHALTLICHER VERANTWORTUNG DES AUSSENDERS | OTB

print