Germany-based steelmaker Salzgitter Group has announced its financial and operational results for the first half of this year.
In the given half, the company posted a net loss of €18.6 million, compared to a net profit of €160.2 million in the same period of the previous year, while its sales revenues amounted to €5.24 billion, down by 10.2 percent year on year due to lower prices. Salzgitter’s EBITDA in the given period dropped to €233.6 million, compared to €429.3 million in the first half of 2023, due to lower sales prices. Also, the company stated that a very negative economic trend in Europe, especially in Germany, deeply affected the performance of its steel business units.
Meanwhile, Salzgitter’s crude steel production totaled 3.33 million mt in the first half, rising by 6.2 percent year on year.
As for the full year, the company expects its sales revenues to be €10 billion, its pre-tax profit to be breakeven, and its EBITDA to be between €400 million and €500 million.
“To date, the German economy is showing no signs of a sustainable recovery. The year 2024 is proving to be one of the most challenging for Germany’s steel industry in decades. 2024 appears to be a lost year from an operating standpoint, while we have achieved a great deal in strategic terms. The sale of Mannesmann Stainless Tubes represents the most important step so far in our active portfolio management. We anticipate a cash inflow of €125 million from this in the second half of the year. We will continue to rigorously progress this process of change that is necessary to meet the current and future challenges to our competitive capabilities. Further strategic and structural adjustments are to follow,” Gunnar Groebler, CEO of Salzgitter, stated.