Germany-based steelmaker Salzgitter Group has announced its financial results for the first quarter of the current year, posting a net profit of €32.7 million, compared to a net loss of €13.3 million in the corresponding quarter of 2014.
Salzgitter's sales revenues amounted to nearly €2.3 billion in the first quarter, decreasing by 13 percent year on year, while the company's EBITDA totaled €149.5 million, increasing by 52.4 percent compared to the first quarter of 2014.
According to Salzgitter's statement, given the sustained pressure on selling prices in the EU steel market, its Strip Steel Business Unit expects business to remain challenging in 2015 as well. Moreover, Salzgitter Flachstahl GmbH (SZFG), as by far the largest company of the business unit, will have to absorb the considerable cost burden of around €80 million for the scheduled relining of one of its large blast furnaces. The lower shipment volumes associated with this measure will therefore result in slightly lower sales.
Additionally, Salzgitter's Plate/Section Steel Business Unit will also continue to operate in a difficult market environment in the current financial year. The plate mills anticipate only a slight improvement in their results due to tough price competition and the suspension of the South Stream project.