Salzgitter Q1 Profit Declines, External Sales Down 11%; Affirms Earnings Guidance

The Salzgitter Group (SZGPF.PK,SZGPY.PK) said it achieved an encouraging start to the current financial year in particular due to the business units of Steel Production, Steel Processing and Technology. The Group's external sales declined by 11%. For 2023, due to the downtrend in average selling prices, the Group expects sales at a notably lower level compared to prior year, as well as a positive EBITDA and a pretax result that will both fall considerably short of the exceptional year-earlier period.

First-quarter after tax result was 140.5 million euros compared to 368.8 million euros, prior year. Basic earnings per share was 2.57 euros compared to 6.80 euros. Earnings before tax declined to 183.7 million euros from 465.3 million euros. External sales declined by 11% to 3.0 billion euros due to the downturn in shipment volumes and the lower average selling prices of many rolled steel products compared with the year-earlier period.