EANS-News: Salzgitter AG / First Quarter of 2011

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Subtitle: Successful start to the financial year 2011

Salzgitter (euro adhoc) - Backed by the continued favorable economic environment
and the resulting recovery in the business activities of almost all
subsidiaries, the Salzgitter Group was off to a good start to the new financial
year in the first quarter of 2011.

The Group's external sales climbed by almost one fifth to EUR 2,307.6 million
(first quarter of 2010: EUR 1,924.8 million). Salzgitter AG generated a pleasing
pre-tax profit of EUR 56.3 million in the first quarter (first quarter of 2010:
-EUR 17.1 million). This result includes a contribution of EUR 29.0 million made
by the stake in Aurubis AG included at equity (first quarter of 2010: EUR 11.2
million). Profit after tax stood at EUR 44.0 million (first quarter of 2010:
-EUR 13.3 million). With an equity ratio of 43 % and a net cash position of EUR
1.1 billion, the Group continues to operate from an exceptionally sound
financial basis.

External sales by Division (EUR million):

Q1 2011    (Q1 2010)
Steel               698.4      (516.1)
Trading             782.3      (657.7)
Tubes               445.2      (449.4)
Services            119.5       (88.0)
Technology          242.9      (199.8)
Other                19.2       (13.8)
Group             2,307.6    (1,924.8)

Earnings before tax (EBT) by Division (EUR million):

Q1 2011   (Q1 2010)
Steel                  9.4     (-31.0)
Trading               23.3       (4.0)
Tubes                 14.7       (2.6)
Services               5.0       (5.1)
Technology            -8.3     (-13.3)
Other/Cons.           12.2      (15.5)
Group                 56.3     (-17.1)

As before, the accuracy of our planning is considerably restricted by shorter
contractual cycles and greater price volatility on the procurement and on the
sales side. Based on the information currently available in the divisions, we
believe that it should be possible for the Salzgitter Group to achieve a pre-tax
profit of up to EUR 150 million in the financial year 2011.

As in recent years, we make special reference to the fact that opportunities and
risks from currently unforeseeable trends in selling prices, input materials and
capacity utilization developments, as well as changes in the currency parity,
may still affect performance considerably over the course of the financial year
2011. The resulting fluctuation in the consolidated pre-tax result may be within
a considerable range, either to the positive or to the negative. The dimensions
of this range become clear if one considers that, assuming the sale of around 8
million tons of steel products by the Steel, Trading and Tubes divisions over
the remainder of the financial year, an average EUR 25 contraction in the margin
per ton is sufficient to cause a variation in the annual result of more than EUR
200 million.

Further inquiry note:
Bernhard Kleinermann
Tel.: +49 (0) 5341-21-1852
E-Mail: [email protected]
end of announcement euro adhoc
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company: 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: Midcap Market Index, MDAX, CDAX, Classic All Share, Prime All Share
stockmarkets: regulated dealing/prime standard: Frankfurt, free trade: Berlin,
Hamburg, Stuttgart, Düsseldorf, Hannover, München
language: English

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