EANS-News: The Salzgitter Group records improvement in results in the third quarter of 2009

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Salzgitter (euro adhoc) - Since the general economic conditions started to
brighten over the course of the first half year 2009, the Salzgitter Group
achieved a notable improvement in results in the third quarter. The impact of
the global financial crisis, however, was still evident so that the Group´s
broad and equally sound business base has proven extremely advantageous against
this backdrop. Positive contributions of the Tubes Division, the Aurubis
participation and financial investments were unable to compensate for the
results of the Steel, Trading and Technology divisions that were particularly
hard hit. The extensive program of short-term cost-cutting measures had a
notably easing effect.
Consolidated external sales dropped 38 % to EUR 5,960.3 million (first nine
months of 2008: EUR 9,638.7 million) in the first three quarters and the pre-tax
loss came to EUR 261.3 million (first nine months of 2008: EUR +1,013.9
million), with a modest uptrend in the summer quarter. In interpreting the
third-quarter pre-tax result (EUR -66.1 million), the fact that a number of
larger plant in the Steel and Tubes divisions as well were idled for a period of
several weeks for planned maintenance and investment measures, along with lower
capacity utilization due to market conditions, must be taken into account. From
its first-time consolidation in January 2009, the 23 % stake in the copper
producer Aurubis AG, a company consolidated at equity, contributed a gratifying
EUR 38.7 million in profit to the consolidated after-tax result of EUR -232.1
million (first nine months of 2008: EUR +689.0 million). This brings the loss
per share to EUR -4.33 (first nine months of 2008: EUR +12.30).

External sales by Division (EUR million):

9M 2009    (9M 2008)
Steel         1,231.1    (2,441.6)
Trading       2,397.3    (4,271.6)
Tubes         1,541.6    (1,604.1)
Services        224.7      (428.5)
Technology      531.6      (787.0)
Others           33.9      (105.9)
Group         5,960.3    (9,638.7)

Earnings before tax by Division (EUR million EBT):

9M 2009    (9M 2008)
Steel          -213.4      (520.3)
Trading         -90.5      (222.5)
Tubes           121.7      (234.1)
Services         -1.7       (25.6)
Technology      -75.5       (15.4)
Others           -1.9       (-4.0)
Group          -261.3    (1,013.9)

We assume that the consolidated pre-tax result of the last three months of the
financial year will continue to move in the direction of breakeven. The moderate
uptrend in one of the most difficult financial years in the 150 year history of
the Group will therefore persist.
As in recent years, we make reference to the fact that opportunities and risks
from currently unforeseeable trends in selling prices, input materials and
capacity level developments, as well as changes in the currency parity, may
still affect the results of the financial year 2009. Additional positive or
negative effects may emanate from changes of a structural and methodological
nature; this applies especially to measurement under IFRS standards and their
treatment. The resulting fluctuation in the consolidated pre-tax result may be
within a considerable range, either to the positive or to the negative.

More information can be found in the full press release and interim report
published today.
(see www.salzgitter-ag.de).

Further inquiry note:
Bernhard Kleinermann
Tel.: +49 (0) 5341-21-3783
E-Mail: [email protected]
end of announcement euro adhoc
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issuer: Salzgitter AG
Eisenhüttenstraße 99
D-38239 Salzgitter
phone: +49 (0) 5341-21-3783
mail: [email protected]
WWW: http://www.salzgitter-ag.de
sector: Iron & Steel
ISIN: DE0006202005
indexes: DAX, Midcap Market Index, CDAX, Classic All Share, Prime All Share
stockmarkets: regulated dealing/prime standard: Frankfurt, free trade: Berlin,
Hamburg, Stuttgart, Düsseldorf, München, regulated dealing: Hannover
language: English

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