Salzgitter, Klöckner report strong first quarter

Two major, stock market-listed German steel companies have performed above their expectations in the first quarter, according to preliminary figures.

Salzgitter generated earnings before taxes of €465 million ($497m) in the first three months of 2022, compared with €117m in the corresponding 2021 period, Kallanish hears from the steelmaker. The performance was attributed mainly to the company’s Steel Production and Trading business units, and notably exceeded current market expectations, it says in an ad-hoc statement. Group revenue rose by around 60% compared on-year to €3.4 billion.

It has therefore lifted guidance for the 2022 financial year and now anticipates pre-tax earnings of between €750m and €900m. The guidance presupposes that raw materials and energy costs as well as steel prices remain at today’s levels, and that availability of natural gas continues.

Distribution group Klöckner & Co meanwhile states it achieved a considerably stronger operating income (Ebitda) in Q1 than originally expected. A renewed supply shortage has led to a significant increase in steel prices in its core markets, Europe and the USA, the group explains.

According to preliminary figures, Ebitda before material special effects amounts to €201m, against the previous expectation of €130-180m. The company also generated positive material special effects from the sale of properties in Switzerland and France amounting to €53m.

Klöckner will announce full figures for the first quarter on 4 May and Salzgitter on 12 May.

Christian Koehl Germany