On March 7, Germany-based steelmaker Salzgitter Group issued its financial results for financial year ended on December 31, stating that the company benefited notably from the economic upswing in 2010 as capacity utilization across all product segments returned to a high level and the selling prices of many products gradually recovered.
According to the financial results, a pre-tax profit of €48.9 million was registered in the financial year, compared with a pre-tax loss of €496.5 million in the previous financial year.
In the period in question, external sales revenues increased to €8.3 billion from €7.82 billion a year ago. Profit after tax of €30 million compares with €386.9 million loss after tax in financial year 2009.
Adjusted by an overall €14.9 million for effects from impairment, streamlining costs and other non-recurrent income and expenses, the result net of special items comes to € 63.8 million.
The company said that in view of most economic research institutes' predictions for a sustained economic recovery, and given a considerable increase in the volume supplied to the company's tubes division, the steel division is anticipating a higher level of orders in 2011. The production of crude steel is expected to expand as both shipments and sales rise. At the same time the restructuring program in the section product segment will be continued consistently. The steel division is expected to generate a positive pre-tax profit again in 2011.