Salzgitter cuts sales and profit forecasts for 2024

The recovery of the German economy is still slow, the company noted

German steelmaker Salzgitter has revised its sales and earnings forecasts for fiscal 2024. This is stated in the message of the company.

«Germany’s economic recovery is still slow to materialize. Infrastructure projects long planned are being delayed, a situation compounded by persistently very high energy costs for procurement and grid usage, along with relatively high imports. Uncertainty currently prevails about a trend reversal after the summer,» the company said.

As noted, amid these conditions, also based on the results of the half-year and the updated forecast from subsidiaries, the executive board of Salzgitter considered it necessary to adjust the forecast for sales and profit for 2024.

In particular, the company now expects sales of €10 billion, which is less than the previously expected €10.5 billion and EBITDA from €400 to €500 million (the previous forecast was from €550 to 625 million. The result before tax is projected at break-even (previously – €100-175 million)).

In May, Salzgitter worsened its forecast for 2024 in relation to the steel market, as signs of its recovery are weaker than previously expected.

As GMK Center reported earlier, at the end of July, the German conglomerate Thyssenkrupp lowered its forecasts for the 2023/2024 fiscal year (ends in September). The company argues that the market environment remains weak, which, among other things, leads to a decrease in sales. While the performance improvement measures (APEX) implemented last year counteract negative market trends, they cannot fully compensate for them.