Salzgitter revises down 2024 earnings forecast amid weak economic indicators

Wednesday, 08 May 2024 11:35:16 (GMT+3)   |   Istanbul
       

Germany-based steelmaker Salzgitter Group has announced a pre-tax profit of €17 million, external sales revenue of €2.7 billion and EBITDA of €126 million for the first quarter this year, according to its preliminary figures. The results for the first quarter are in line with capital market expectations.

According to the statement, for the remainder of 2024, there are also indications that the German economy will not be able to keep pace with the upswing in other industrial nations. At the same time, uncertainty regarding economic development in the second half of 2024 is on the rise. This situation has an impact on the performance of the company’s steelmaking subsidiaries at which delays in planned incoming orders are materializing.

Against this backdrop, Salzgitter has adjusted its outlook for 2024. For the given year, the company expects its sales revenue to be around €10.5 billion, and pre-tax profit to be between €100 million and €175 million, both compared to the previous forecasts of €10.5-11 billion and €250-300 million respectively. In addition, Salzgitter forecasts its EBITDA for 2024 to be at €550-625 million compared to the previous expectation of €700-750 million.


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