Germany-based steelmaker Salzgitter Group has stated in its financial report for the first half of this year that the given period was characterized by geopolitical tensions and trade policy conflicts, along with weak economic momentum. The results of its steel production and steel processing units reflected the extremely challenging political and economic framework conditions.
To future-proof its position, the company noted that it extended the former “Performance 2026” profit improvement program. The new “P28” program is designed to improve the performance of its business units in a sustainable way. By 2028, the company expects to see an overall effect of €500 million from efficiency and process improvements in procurement, logistics, and sales, including measures taken from the previous program. Besides, the ongoing measures from the original Performance 2026 program, the P28 program’s additional measures are also bearing fruit.
In the first half, the company reported a net loss of €88.9 million, compared to a net loss of €18.6 million in the same period of the previous year, while its sales revenues amounted to €4.66 billion, down by 11.0 percent year on year. Salzgitter’s EBITDA in the given period dropped to €116.8 million, compared to €233.6 million in the first half of 2024.
Meanwhile, Salzgitter’s crude steel production totaled 2.93 million mt in the first half, dropping by 12.1 percent year on year.
As for the full year, the company expects its sales revenues to be €9-9.5 billion, and its EBITDA to be between €300 million and €400 million.