EANS-News: SALZGITTER AG - first half of 2012

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quarterly report

Subtitle: Breakeven in the second quarter despite difficult market
environment

Salzgitter (euro adhoc) - The Salzgitter Group's business activities
in the first half of 2012 were influenced by an environment impacted
by growing economic uncertainty. Following an upswing at the start of
the year, the order activity of many steel product customers was
extremely reticent in the second quarter. Economic sentiment appears
to be poorer to date - at least in Germany - than is justified by the
actual order situation of many steel processing sectors. Given the
virtually overall satisfactory capacity utilization situation,
accompanied, however, by an unsatisfactory selling price trend, the
Group achieved another healthy breakeven in the pre-tax result in the
second quarter of the financial year 2012, having closed the
preceding quarter at a loss.

Consolidated external sales climbed to EUR 5,378.5 million, an
increase of around EUR 600 million (first half of 2011: EUR 4,773.5
million). The significant expansion in the Trading Division's
business volume was a major influencing factor. In the first six
months of 2012, the Salzgitter Group delivered a pre-tax result of
EUR -17.9 million (first half of 2011: EUR 130.0 million) and,
following a difficult start to the new financial year, is now
reporting an uptrend. An amount totaling EUR 34.6 million in
after-tax contribution by Aurubis AG, a participation included at
equity, is included in the consolidated financial statements (first
half of 2011: EUR 46.5 million). The consolidated after-tax result
amounts to EUR -22.5 million (first half of 2011: EUR 93.7 million).
Thanks to its broad-based positioning and an unchanged equity ratio
of 43 %, as well as a net financial position of EUR 535 million, the
situation of the Salzgitter Group remains decidedly sound.

External sales by Division (EUR million):

H1 2012 (H1 2011)
Steel 1,406.8 (1,367.0)
Trading 2,398.4 (1,737.3)
Tubes 790.5 (903.2)
Services 212.2 (238.7)
Technology 548.5 (485.7)
Other 22.0 (41.8)
Group 5,378.5 (4,773.5)

Earnings before tax (EBT) by Division (EUR million):

H1 2012 (H1 2011)
Steel -97.8 (30.4)
Trading 27.6 (38.2)
Tubes 8.3 (46.7)
Services 10.2 (8.3)
Technology 2.6 (-17.7)
Other/Consolidation 31.1 (24.1)
Group -17.9 (130.0)

The uncertainty triggered by the sovereign debt crisis in a number of
euro countries continues to exert massive pressure on the economic
climate. Several key ratios in the industry, however, support the
supposition that the outlook for a number of sub-sectors of the
economy is still better than the current sentiment would suggest. We
continue to anticipate stable sales at min-imum and a positive
pre-tax result for the Salzgitter Group. This is likely to be in the
lower- to mid-double-digit million euro range.

As in recent years, we make reference to the fact that opportunities
and risks from currently unforeseeable trends in selling prices,
input material prices and capacity level developments, as well as
changes in the currency parity, may considerably affect performance
in the course of the financial year 2012. The resulting fluctuation
in the consolidated pre-tax result may 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 sold by the Steel, Trading and Tubes divisions
in the second half of the financial year, an average EUR 20
contraction in the margin per ton is sufficient to cause a variation
in the annual result of more than EUR 120 million. Moreover, the
accuracy of the company's planning is restricted by the volatilities
and shorter contractual durations, both on the procurement and on the
sales side.

Disclaimer: Some of the statements made in this report possess the
character of forecasts or may be interpreted as such. They are made
to the best of knowledge and belief, and by their nature are subject
to the proviso that no unforeseeable deterioration occurs in the
economy or in the specific market conditions pertaining to the
companies of the various divisions, but rather that the underlying
bases of plans and outlooks prove to be accurate as expected in terms
of their scope and timing. The company undertakes no obligation to
update any forward-looking statements.

Further inquiry note:
Bernhard Kleinermann
+49 (0) 5341/21-1852
ir@salzgitter-ag.de

end of announcement euro adhoc
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company: Salzgitter AG
Eisenhüttenstraße 99
D-38239 Salzgitter
phone: +49 (0) 5341-21-3783
mail: info@salzgitter-ag.de
WWW: http://www.salzgitter-ag.de
sector: Iron & Steel
ISIN: DE0006202005
indexes: Midcap Market Index, MDAX, CDAX, Classic All Share, Prime All Share
stockmarkets: free trade: Hannover, Berlin, München, Hamburg, Düsseldorf,
Stuttgart, regulated dealing/prime standard: Frankfurt
language: English