Salzgitter AG: Well equipped for the future - outstanding results in all divisions

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finances/Interim report 9M 2008

Salzgitter (euro adhoc) - In an environment characterized by growing
uncertainty about future economic developments, the Salzgitter Group
set a new pre-tax record result in the first three quarters of the
financial year thanks to the high volume of orders placed for rolled
steel and tubes in the reporting period. Owing to its exceptionally
solid financial position and sound strategic alignment, Salzgitter AG
is well equipped to meet the challenges ahead. Consolidated external
sales rose by EUR 2.14 billion to EUR 9.64 billion (+ 29 %; 9M/2007:
EUR 7.50 billion). Along with the higher selling prices of steel
products, mainly the companies of Klöckner-Werke AG, which are part
of the Technology Division, together with other companies which, in
the previous year´s period, did not yet belong to the group of
consolidated companies, contributed EUR 1.02 billion to revenue
growth. The Group´s pre-tax profit of EUR 1.01 billion, generated in
the first three quarters of 2008, was marginally higher in a
year-on-year comparison (9M/2007: EUR 980 million). This increase was
attributable, on the one hand, to better selling prices, which had a
considerable impact on the tubes business and also led to a temporary
widening of margins in the steel stockholding companies of the
Trading Division, and on the other hand, to the profit contribution
of the Technology Division which was more than EUR 25 million higher
as against the year-earlier figure. Profit after tax, which came in
at EUR 689.0 million, exceeded the figure posted in the first nine
months of 2007 (EUR 594.9 million) by 16 %, mainly due to the lower
domestic corporate tax rate. Earnings per share stood at EUR 12.30.
Return on capital employed (ROCE) from industrial business posted
31.4 % and, taking account of cash funds of more than one billion
euros, ROCE came to 28 % (9M/2007: 29.0 %).

External sales by Division (EUR million):

9M 2008 (9M 2007)
Steel 2,441.6 (2,167.7)
Trading 4,271.6 (3,262.3)
Tubes 1,604.1 (1,343.3)
Services 428.5 (390.3)
Technology 787.0 (246.2)
Others 105.9 (90.8)
Group 9,638.7 (7,500.6)

9M 2008 (9M 2007)
Steel 520.3 (569.4)
Trading 222.5 (176.5)
Tubes 234.1 (210.2)
Services 25.6 (47.6)
Technology 15.4 (-9.9)
Others -4.0 (-13.4)
Group 1,013.9 (980.4)

Provided that the conditions in the environment do not change beyond
what is currently known and expected up until the end of the year,
Salzgitter AG will generate a consolidated pre-tax profit of almost
EUR 1.2 billion in the financial year 2008. Even after contingent
accounting measures as part of the annual accounts process, pre-tax
profit will range within the previous forecast for the financial year
of more than one billion euros. Express reference is made to the fact
that, given the current volatility in the financial and real economy,
currently unforeseeable trends in sales prices, input materials and
capacity level developments, as well as changes in the currency
parity, may affect performance in the course of the fourth quarter of
2008.

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

Further inquiry note:

Jan Mathias Lesemann

+49 (0) 5341/21-4329

lesemann.j@salzgitter-ag.de

Branche: Iron & Steel
ISIN: DE0006202005
WKN: 620200
Index: Midcap Market Index, MDAX, CDAX, Classic All Share, HDAX,
Prime All Share
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