euro adhoc: Salzgitter AG / Annual Reports / Key figures of the 2002 business year (E)

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

Profits in excess of EUR 70 million in spite of difficult markets

Salzgitter AG has concluded the 2002 business year with a result that can be regarded as generally satisfactory considering the persisting difficult situation of domestic and foreign markets.
The Group based in Lower Saxony, Germany, generated pre-tax profits of EUR 72.5 million (EBT) on consolidated external sales of EUR 4.7 billion. After-tax profits (EAT) came in at EUR 65.9 million (previous year: EUR 144.3 million). The 3% sales increase over the 2001 business year (EUR 4.6 billion Group sales) is due to the extension of the scope of consolidation. Return on capital employed (ROCE) was recorded at 7,3 %.
Progressing from a highly unsatisfactory situation in the first half of 2002 with the lowest market prices for flat steel since 20 years, the performance of the Steel Division ameliorated over the following months. As the profits generated in the second half of the year could not offset the losses incurred in the first six months of the business year, the overall pre-tax result for 2002 came in at EUR -23.5 million (previous year: EUR + 30.1 million). Total sales of EUR 1.9 billion, as well as the Steel Division's contribution of EUR 1.4 billion to the Group's external sales were on par with last year's level.
Contributing pre-tax profits of EUR 76.8 million, the Tubes Division delivered an excellent result once again (previous year: EUR 101.9 million). Changes in the scope of consolidation pushed consolidated external sales to EUR 1.1 billion (previous year: EUR 1.0 billion). In the year 2002 the Trading Division experienced relatively weak demand and external sales dipped from EUR 1.9 billion last year to EUR 1.7 billion. The Division generated pre-tax profits of EUR 8.2 million (previous year: EUR 18.5 million).
The Services Division advanced external sales by 7% over the previous year to a total of EUR 232 million. Pre-tax profits amounted to EUR 8.3 million (previous year: EUR 12.8 million).
The Processing Division reported an increase of external sales to EUR 229 million (previous year: EUR 118 million). This sales growth is attributable to the first-time addition of three further companies to the consolidated group. The pre-tax result of EUR 8.0 million in 2002 is not comparable with the previous year's losses of EUR 2.3 million. This is due to the fact the 2002 annual financial statements include expenditures for structural measures as well as the launch costs of two start-up companies in excess of EUR 20 million, that are offset, however, by profits in a similar range resulting from reduced interest in the US steel company Steel Dynamics Inc.
The year-end financial statements will be submitted to the Supervisory Board for approval at the next meeting and the complete statements will be issued on April 15, 2003.
For further information please contact:
Investor Relations: Telephone 0049-(0)5341-21-3783, Fax:

Further inquiry note:
Dr. Wolfgang Simons
Tel.: +49 (0) 5341-21-3873
Tel: +49 (0) 5341-21-01
FAX: +49 (0) 5341-21-2727

end of announcement euro adhoc

Emittent: Salzgitter AG
Eisenhüttenstrasse 99
DE-38239 Salzgitter
Tel: +49 (0) 5341-21-01
FAX: +49 (0) 5341-21-2727
ISIN: DE0006202005
WKN: 620200
Indizes: MDAX
Börsen: free trade Baden-Württembergische Wertpapierbörse, Bayerische Börse, Berliner Wertpapierbörse, Bremer Wertpapierbörse (BWB), Börse Düsseldorf, Hamburger Wertpapierbörse; official dealing Frankfurter Wertpapierbörse, Niedersächsische Börse zu Hannover Branche: Iron & Steel
Sprache: Englisch