Germany-based steelmaker Salzgitter Group has announced a further downward revision of its guidance for 2013 given the persisting structural crisis in the European steel industry. The company said that the direct and indirect consequences of this crisis have considerably burdened Salzgitter, indicating that the downturn in demand has resulted in significant surplus capacities arising especially among European steel producers.
Salzgitter said that the earnings prospects of its steel division has deteriorated overall and that it now expects a pre-tax loss of around €400 million ($532 million) for 2013. To counteract this situation, designated cost-cutting measures, such as investing in a coal injection plant for the Salzgitter blast furnaces and numerous other projects, are being advanced.
As SteelOrbis previously reported, in May this year Salzgitter announced an adjustment of its guidance for 2013, expecting a pre-tax loss for the year due to higher raw material and energy costs.