Salzgitter AG: Half-year balance shows deep red figures and challenges!

Salzgitter AG: Half-year balance shows deep red figures and challenges!

Salzgitter AG faces major challenges in the first half of 2025. The company generated sales of 4.66 billion euros, a decrease compared to 5.24 billion euros in the previous year. This decline is not without consequences, as EBITDA fell to 116.8 million euros, while it was still at 233.6 million euros in the same period in 2024. The pre-tax result is also strongly negative at minus 83.8 million euros and marks a drastic decline compared to an increase of 11.5 million euros in the previous year, as 4investors.de reports.

This development means that the loss per Salzgitter share increases from 0.40 euros to 1.68 euros. CFO Birgit Potrafki stated that the results of the steel production, steel processing and trading divisions were unsatisfactory. In order to improve this situation, Salzgitter is implementing internal measures to improve results and secure liquidity. Despite these difficulties, the investments, particularly in Aurubis, delivered a positive note and contributed 71.5 million euros to the overall result.

Negative developments and burdens

The negative valuation effects for derivatives, which reduced the result by 79.9 million euros, are particularly serious. In addition, one-off effects of 10 million euros also had a negative impact on the balance sheet. While the technology sector has a positive balance with an EBT of 54.7 million euros, things look bleak in steel production with minus 55.6 million euros and in steel processing with even minus 63.4 million euros. However, the trading division was able to improve slightly with a slightly positive result of 10.9 million euros, which can be attributed to successful cost adjustments and restructuring measures, according to salzgitter-ag.com.

CEO Gunnar Groebler emphasizes the focus on cost and performance management to ensure competitiveness in challenging demand. Despite the negative development, the company has its net financial debt under control, which is expected to remain below 1.5 billion euros. The outlook for 2025 calls for sales of between 9.0 and 9.5 billion euros, while EBITDA is forecast to be between 300 and 400 million euros and pre-tax earnings between minus 100 million euros and balanced. The opportunities and risks that can influence business development are also not ignored.

Insight into the steel industry

The challenges facing Salzgitter AG are also reflected throughout the steel industry. The Statistical Yearbook of the Steel Industry 2024/2025, which was recently published, shows important key figures on structural shifts and global trends in the industry. It is clear that the current situation not only affects Salzgitter, but the entire steel industry, which is in constant change. The focal points include, among other things, the topics of sales, production and deliveries as well as energy and raw material use, as wvstahl.de reports.

Overall, it is clear that Salzgitter and the steel industry as a whole are facing an intensive phase of adjustment. It remains exciting to see how the company's strategy will develop in the coming months and whether the measures taken can actually help stabilize the situation.