SALZGITTER AG: 2008 off to a great start with new record sales and excellent earnings in the first quarter

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finances/Interim report

Salzgitter (euro adhoc) - In the first quarter of 2008, the
Salzgitter Group benefited from the marked upswing in demand in the
European steel market, the expansion of business activities in the
precision tubes segment, as well as from the contribution of the new
Technology Division.

Consolidated external sales rose 22 % to EUR 2.90 billion (first
quarter of 2007: EUR 2.38 billion). Klöckner-Werke AG, acquired at
the start of the second half-year of 2007 and integrated into the new
Technology Division, and other companies in the Tubes Division
contributed EUR 314.2 million to this result.

Pre-tax profit of EUR 291.9 million remained at an excellent level
(first quarter of 2007: EUR 325.4 million) thanks to very good
results delivered especially by the Steel, Tubes and Trading
divisions. What makes this outcome even more remarkable is that not
only higher current expenses for raw materials and energy, but also
EUR 49.1 million in additional materials expenses were considered in
view of the further price increases that largely became effective
from January 1, 2008. Due to a reduction in the corporate tax rate,
the Group´s after-tax profit, which stood at EUR 194.9 million,
almost attained the previous year´s level (first quarter of 2007: EUR
196.6 million). Earnings per share posted EUR 3.40 (first quarter of
2007: EUR 3.41). Return on capital employed (ROCE) from industrial
business reached a remarkable 37.9 % in the first three months of
2008; including income from the investment of funds of more than EUR
2 billion, ROCE came to 22.4 % (first quarter of 2007: 30.8 %).

Sales by Division (EUR million):

Q1 2008 (Q1 2007)
Steel 1,110.4 (1,007.4)
Trading 1,307.5 (1,267.4)
Tubes 726.5 (591.2)
Services 303.5 (296.2)
Technology 264.8 (-)
Others 130.1 (90.5)
Internal Sales -941.7 (-871.2)
Group 2.901.1 (2,381.5)

Earnings before tax by Division (EUR million):

Q1 2008 (Q1 2007)
Steel 172.5 (181.5)
Trading 48.6 (64.8)
Tubes 66.0 (65.5)
Services 4.9 (8.1)
Technology 4.2 (-)
Others/Consolidation -4.3 (5.6)
Group 291.9 (325.4)

As before, we are striving to achieve significant growth within the
Group in the financial year 2008. More than 50 % of this growth is to
be generated from the first-time full-year inclusion of the companies
of the Klöckner Group in our new Technology Division. Associated with
this growth, we anticipate operating profit before tax in excess of
EUR 900 million.

Express reference is made to the fact that opportunities and risks
arising from currently unforeseeable trends in sales prices, input
materials and capacity level developments, as well as changes in the
currency parity, may considerably affect performance in the course of
the remaining financial year 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:

Bernhard Kleinermann

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

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

Branche: Iron & Steel
ISIN: DE0006202005
WKN: 620200
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