Salzgitter flags up successful start to 2019

Salzgitter : successful Q1/ 2019

Salzgitter generated profit before taxes of €126 million ($141m) in the first quarter of 2019, (Q1 2018: €96m), thereby notably exceeding current market expectations, Kallanishlearns from the company.

Along with a satisfactory pre-tax profit generated by the Strip Steel business unit, all other business units strengthened this performance by delivering positive results, the group notes in an ad-hoc release. External sales came in at €2.3 billion, on a par with the Q1 2018. ”Following the strong first quarter, we affirm our earnings forecast for profit before taxes of between €25m and €175m,” Salzgitter says.

It adds that it is currently anticipating a result more at the upper end of the range. However, with reference to the unstable economic situation and the associated impaired forecasting reliability for the full year, it considers any revision of the forecast to be premature at present.

Imponderables include changes in the cost of raw materials, precious metal prices and exchange rates, along with global trade policy measures. With around 9 million tonnes/year of steel products to be sold by its units, an average €10/t change in the margin could cause a variation in the annual result of €90m, it notes.