Salzgitter Group closes 2017 with highest pre tax result
Salzgitter Group closes the financial year 2017 with the highest pre-tax result since the financial crisis; outlook for 2018 also promising. According to the still preliminary figures now available, the Salzgitter Group generated a pre-tax profit of EUR 238.0 million in 2017 (FY 2016: EUR 53.2 million), its highest since 2008. The excellent performance of the Strip Steel and Trading business units, along with the continued successful implementation of the Group’s internal programs, made major contributions to this performance.
The result includes a contribution of EUR 79.3 million anticipated from the Aurubis investment (FY
2016: EUR 19.1 million) as well as the sum total of EUR -82.8 million in burdens on earnings from measures initiated for structural improvements under the group wide “FitStructure SZAG” optimization program as well as accounting adjustments of non-current assets of Salzgitter Mannesmann Grobblech GmbH (special items FY 2016: EUR –2.3 million). The result is therefore above the earnings forecast for a pre-tax profit of between EUR 175 million and EUR 225 million most recently affirmed on November 11, 2017. The Salzgitter Group’s external sales (EUR 9.0 billion; FY 2016: EUR 7.9 billion) rose substantially, above all on the back of the higher average selling prices of steel products.
Given the good start to the new financial year, with market conditions brightening in some areas of business, but remaining challenging overall, and additional positive effects of the measures and growth programs, we assume the following for the Salzgitter Group in 2018:
1. a marginal increase in sales to above EUR 9 billion,
2. a pre-tax profit of between EUR 200 million and EUR 250 million, as well as
3. a return on capital employed that is stable compared with the previous year's figure.
Source : Strategic Research Institute, SteelGuru