EANS-News: Salzgitter AG / The Salzgitter Group emerges from the trough in the second quarter of 2009

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

finances

Salzgitter (euro adhoc) - In accordance with expectations, the
Salzgitter Group was exposed to considerable pressure from the impact
of the global financial and economic crisis in the first half of the
financial year 2009. This was reflected above all in the results of
the Steel, Trading and Technology divisions. While the positive
contributions made by the tubes product segments, the Aurubis AG
holding, and extensive funds invested had a stabilizing
counter-effect, they were unable to compensate for the negative
influences of the economic environment. The Group´s external sales
contracted in almost all product segments, by 34 % to EUR 4,125.7
million, owing to significant declines in shipments and selling
prices. In the first half-year, the Salzgitter Group recorded a
pre-tax loss of EUR 195.2 million. This result has absorbed
significant accounting measures mainly in the Steel Division relating
to adjustments to the value of inventories, along with other measures
carried out in the 2008 financial statements, to ensure that the
Group remains free from hidden inventory valuations burdens. The 23 %
holding in the leading European copper producer Aurubis AG, a company
consolidated at equity, contributed very satisfactory after-tax
earnings of EUR 32.7 million. The consolidated after-tax result came
to EUR-165.0 million, which brings earnings per share to EUR-3.07.
Return on capital employed (ROCE) from industrial business stood at
-12.9 %; including around EUR 1.5 billion in cash and cash
equivalents it came to -8.1 %.

External sales by Division (EUR million):

H1 2009 (H1 2008)
Steel 799.9 (1,611.0)
Trading 1,683.7 (2,656.4)
Tubes 1,107.9 (1,077.0)
Services 146.4 (284.9)
Technology 367.5 (523.4)
Others 20.5 (80.7)
Group 4,125.7 (6,233.4)

Earnings before tax by Division (EUR million):

H1 2009 (H1 2008)
Steel -190.2 (345.1)
Trading -57.7 (140.7)
Tubes 96.0 (152.1)
Services -5.4 (16.8)
Technology -43.7 (12.2)
Others/Cons. 5.8 (-20.5)
Group -195.2 (646.4)

Our original forecast for a half-yearly loss with a possible
brightening of the situation in the second half of the year has been
confirmed. However, there are as yet no signs of a strong and
sustained turnaround in the steel market, as any distinct recovery
tendencies in order intake and selling prices so far have only been
discernable for a few product groups. The Salzgitter Group therefore
anticipates a pre-tax loss in the second half-year as well which,
however, is unlikely to be as high as that of the reporting period
ended. In our opinion it is conceivable that more or less breakeven
in monthly results may be achieved towards the end of the year.

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

+49 (0) 5341/21-3783

kleinermann.b@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
Düsseldorf / free trade
München / free trade
Hannover / regulated dealing