Salzgitter increased steel production by 6.2% y/y in H1 2024

Product sales during this period decreased by 10.2% y/y

In H1 2024, the German steel company Salzgitter increased steel production by 6.2% compared to the same period in 2023 – up to 3.33 million tons. This is stated in the company’s report.

Steel sales for January-June decreased by 10.2% y/y – to €5.24 billion. EBITDA fell by 45.6% y/y – to €233.6 million, and profit before taxation – by 94.6% y/y, up to €11.5 million.

«The slow economic development in Europe, especially in Germany, is a heavy burden on the development of the steel industry. The revenue from steel sales fell compared to the same period amid lower prices for most types of rolled steel,» the company notes.

The company’s capex for 6 months is estimated at €314.5 million, which is 53.4% ​​more compared to January-June 2023.

«Today, there are no signs of a sustainable recovery of the German economy. The year 2024 will be one of the most difficult in recent decades for the German steel industry. Operationally, 2024 looks like a lost year, but strategically we have achieved a lot. The sale of Mannesmann Stainless Tubes is the most important step in our portfolio management to date. We expect proceeds from the operation in the amount of €125 million in the second half of the year. We are constantly continuing the change process necessary to address current and future challenges for our competitiveness and are planning further strategic and structural changes,» comments Gunnar Gräbler, CEO of Salzgitter AG.

As GMK Center reported earlier, Salzgitter revised its sales and earnings forecasts for the 2024 fiscal year. In particular, the company foresees a sales volume 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 taxation is forecast at the break-even level (previously – €100-175 million).