EANS-News: SALZGITTER AG - First Quarter of 2010 Salzgitter Group delivers an operating profit in the first quarter of 2010

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quarterly report

Salzgitter (euro adhoc) - In the first quarter of the financial year
2010, the ongoing economic recovery supported both the current order
and capacity utilization situation as well as the further business
outlook of the Salzgitter Group. The selling price trend for rolled
steel and tubes products, however, failed to keep pace with the swift
increase in the price of commodities. Moreover, the sale of products
destined for the construction sector was hampered by the protracted
wintry weather conditions. Given these generally favorable
conditions, which were not without their limitations, the Group
achieved an operating profit, thereby concluding the first quarter
with a result much improved in comparison with a year ago.

The only slow recovery in selling prices in the Steel, Trading and
Tubes divisions seen in the first months of 2010 from their lowest
levels in the previous year resulted in Group external sales of EUR
1,924.8 million, which is still below the year-earlier figure (first
quarter of 2009: EUR 2,194.7). The Salzgitter Group closed the first
quarter with an operating pre-tax profit of EUR 2.6 million. This
figure factors in accounting-related measures of EUR 27.7 million for
project orders which have been booked and where the costs are no
longer likely to be covered due to soaring commodity prices. The
Group´s pre-tax loss of EUR -17.1 million (first quarter of 2009: EUR
-98.3 million) includes EUR 19.7 million worth of provisions formed
for streamlining measures. The after-tax loss stood at EUR -13.3
million (first quarter 2009: EUR -74.1 million), bringing earnings
per share to EUR -0.27. Return on capital employed (ROCE) was still
marginally negative (-1.0 %; first quarter of 2009: -7.7 %).

External sales by Division (EUR million):

Q1/2010 (Q1/2010)
Steel 516.1 (427.7)
Trading 657.7 (926.9)
Tubes 449.4 (552.0)
Services 88.0 (83.4)
Technology 199.8 (192.5)
Others 13.8 (12.1)
Group 1,924.8 (2.194.7)

Earnings before tax by Division (EUR million EBT):

Q1 2010 (Q1/2009)
Steel -31.0 (-129.7)
Trading 4.0 (-20.6)
Tubes 2.6 (50.8)
Services 5.1 (-3.2)
Technology -13.3 (-23.3)
Others 15.5 (27.7)
Group -17.1 (-98.3)

The immense and rapid fluctuations in the cost and price of
commodities have reduced planning certainty to a minimum.
Irrespective of the sustained global recovery in the steel markets, a
reliably quantified outlook for sales and the results of the
Salzgitter Group cannot therefore be given for the financial year
2010. In consideration of the currently discernible risks and
potential, we nonetheless believe that achieving near breakeven may
be possible in the current financial year.

As in recent years, we make special and explicit reference this time
to the fact that opportunities and risks from currently unforeseeable
trends in selling prices, input materials and capacity level
developments, as well as changes in the currency parity, may
considerably affect performance in the course of the financial year
2010. The resulting fluctuation in the consolidated pre-tax result
may, as current events show, be within a considerable range, either
to the positive or to the negative. The dimensions of this range
become clear if one considers that, with around 6 million tons of
steel products left to be sold this year by the Steel, Trading and
Tubes divisions, an average EUR 30 deviation in the margin per ton is
sufficient to cause a variation in the annual result of more than EUR
180 million.

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

end of announcement euro adhoc
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ots Originaltext: Salzgitter AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:

Markus Heidler

+49 (0) 5341/21-6105

heidler.m@salzgitter-ag.de

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