EANS-News: Salzgitter AG / Difficult economic situation and accounting measures impact the result of the first quarter

--------------------------------------------------------------------------------
Corporate news transmitted by euro adhoc. The issuer/originator is solely
responsible for the content of this announcement.
--------------------------------------------------------------------------------

finances/Interim Report

Salzgitter (euro adhoc) - In the first quarter of the financial year,
the Salzgitter Group was exposed to the pressure exerted by
recessionary trends, especially in the businesses of the Steel,
Trading and Technology divisions. By contrast, the sustained positive
result of the Tubes Division, coupled with income from the
shareholding in Aurubis AG and financial investments, had a
considerably stabilizing effect. In order to take account of selling
price trends in the rolled steel markets, as well as declines in the
price of raw materials, both actual and foreseeable, further
valuation adjustments were carried out on inventories in the
reporting period. As a result, the Group is free from hidden
encumbrances accruing from inventory valuation.

Consolidated external sales fell by 24 % to EUR 2,194.7, which is
indicative of the substantial decline in the business activities of
all divisions, to the exception of the Tubes Division. The Salzgitter
Group closed the first quarter with a pre-tax loss of EUR 98.3
million. This result includes around EUR 100 million for accounting
measures relating to inventory valuation in the Steel Division.
Moreover, a very gratifying first-time amount of EUR 23.7 million in
after-tax earnings of Aurubis AG, the leading European copper
manufacturer in which the Group holds a 23 % stake consolidated at
equity, was recorded. The after-tax result stood at EUR -74.1
million, bringing earnings per share to EUR -1.38. Return on capital
employed (ROCE) from industrial operations was negative (-11.3 %)
and, including EUR 1.3 billion in cash and cash equivalents, result
in -7.7 %.

External sales by Division (EUR million):

Q1 2009 (Q1 2008)
Steel 427.7 (782.1)
Trading 926.9 (1,154.3)
Tubes 552.0 (543.0)
Services 83.4 (128.6)
Technology 192.5 (248.5)
Others 12.1 (44.6)
Group 2,194.7 (2,901.1)

Earnings before tax by Division (EUR million):

Q1 2009 (Q1 2008)
Steel -129.7 (172.5)
Trading -20.6 (48.6)
Tubes 50.8 (66.0)
Services -3.2 (4.9)
Technology -23.3 (4.2)
Others 27.7 (-4.3)
Group -98.3 (291.9)

Owing to the ailing global economy, we consider our original forecast
of not achieving breakeven for the Group in the first half of the
year to be affirmed. We currently do not have any reliable
indications that there will be a recovery in the second half year. We
nonetheless believe it possible that order activity for steel
products will settle at a normal level once the steel processors and
traders have completed the process of reducing their inventories.

As from the third quarter, the reduction in the price of raw
materials will be felt to a greater extent in terms of in the
manufacturing costs. Accordingly, we still believe, even taking
account of valuation adjustment measures carried out on inventories,
that, given a notable recovery in the rolled steel market and in
demand from the automotive industry, achieving breakeven in the
pre-tax result in 2009 should still be possible. This is, however,
contingent upon a strong and sustained turnaround of the situation in
the steel market.

More information can be found in the full press release and interim
report published today (see www.salzgitter-ag.de).

end of announcement euro adhoc
--------------------------------------------------------------------------------

ots Originaltext: Salzgitter AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:

Bernhard Kleinermann

Tel.: +49 (0) 5341-21-3783

E-Mail: kleinermann.b@salzgitter-ag.de

Branche: Iron & Steel
ISIN: DE0006202005
WKN: 620200
Index: DAX, CDAX, Classic All Share, HDAX, Prime All Share
Börsen: Frankfurt / regulated dealing/prime standard
Berlin / free trade
Hamburg / free trade
Stuttgart / free trade
Düsseldorf / free trade
München / free trade
Hannover / regulated dealing