In a first quarter of the 2024 financial year characterized by a weak economy, the Salzgitter Group recorded earnings before interest, taxes, depreciation and amortization (EBITDA) of EUR126.4 million and pre-tax profit of EUR17.2 million.
The main drivers of this result were the Technology division, with another extremely pleasing quarterly result, as well as the contribution from the investment in Aurubis AG, which was accounted for at equity (IFRS accounting). The steel-related business areas, on the other hand, were burdened by the very subdued economic development in Europe, especially in Germany.
The external sales of the Salzgitter Group fell by 10.2% to EUR2.68 billion (Q1 2023: EUR2.98 billion) as a result of the decline in revenue compared to the comparable period. Also primarily due to revenue, EBITDA (EUR126.4 million; Q1 2023: EUR290.0 million) and profit before taxes (EUR17.2 million; Q1 2023: EUR183.7 million) fell. The result includes a EUR23.9 million contribution from the investment in Aurubis AG included at equity (IFRS accounting) (Q1 2023: EUR29.3 million). The EUR15.0 million (Q1 2023: EUR140.5 million) after-tax profit results in EUR0.24 earnings per share (Q1 2023: EUR2.57). The return on capital employed (ROCE) was 2.6% (Q1 2023: 12.6%). The equity ratio reached an extremely solid 45.6% (Q1 2023: 44.4%).
The CEO of Salzgitter AG, Gunnar Groebler, comments as follows: 'After the two exceptional years of 2021 and 2022, we already felt in the second half of last year that the wind was now blowing from the front. This was also reflected in the business figures for the first quarter and will have an impact on further business developments in 2024. It is now all the more important to push ahead with measures to increase profitability and active portfolio management as well as to resolutely continue on the path of transformation. I am firmly convinced that this path will lead to a more resilient Salzgitter AG. The performance of KHS GmbH is currently providing cause for celebration, as it is by far the largest company in our Technology division and is aiming for record results this year.'
CFO Birgit Potrafki classifies the key figures: 'A continuation of the slight upturn that was evident at the beginning of the year, as well as the originally anticipated gradual brightening of the market environment, have so far failed to materialize. The economic recovery in Germany and Europe is likely to begin later and weaker than expected a few months ago. In particular, our core customer markets of construction, automotive and mechanical engineering in Germany experienced some pronounced weaknesses throughout the first quarter. This had and continues to have a direct impact, especially on the business development of our company's steel-related companies, whose results cannot satisfy us. Thanks to our business with beverage filling and packaging systems and the 30% stake in Aurubis AG, we were still able to report a small pre-tax profit in the first quarter of 2024, which exceeded the results of the third and fourth quarters of 2023. So diversification pays off once again. The result also shows how important our measures to improve internal results and cost discipline are. We will not let up here, especially as we are in the middle of the capital-intensive transformation as part of SALCOS. Despite all the challenges, the financial and balance sheet condition of the Salzgitter Group remains very robust.'
outlook
Outlook Looking ahead to the rest of the year, it is becoming apparent that the German economy will not be able to continue the upswing in other industrialized countries. Signs of recovery are more hesitant and weaker than originally anticipated, while at the same time uncertainty regarding economic development in the second half of 2024 is increasing. Against this background, we expect the following for the Salzgitter Group for the 2024 financial year: a turnover of EUR10.5 billion, an EBITDA between EUR550 million and EUR625 million, a pre-tax profit between EUR100 million and EUR175 million and a return on capital employed (ROCE) that was slightly below the previous year's level.
As in previous years, we would like to point out that opportunities and risks from currently unforeseeable revenue, input material price and employment developments as well as changes in exchange rates can have a significant impact on business development in 2024. The resulting effects on earnings can be significant in both a negative and a positive direction.
Contact:
Markus Heidler
Head of Investor Relations
Tel: +49 (0) 5341 21-1852
Email: heidler.m@salzgitter-ag.de
Thorsten Mollmann
Head of Group Communications and Brand
Tel: +49 (0) 5341 21-2300
Email: moellmann.t@salzgitter-ag.de
Disclaimer: Some of the statements made in this communication are in the nature of forecasts or can be interpreted as such. They have been prepared to the best of our knowledge and belief and naturally apply under the condition that there is no unforeseeable deterioration in the economy and the specific market situation for the companies in the business areas, but rather that the basis of the planning and forecasts is to the extent and in the time frame as expected prove to be accurate. The company assumes - without prejudice to existing legal requirements, in particular capital market law - no obligation to continually update forward-looking statements that are based exclusively on the circumstances on the date of publication.
AURUBIS AG 
