EANS-News: Salzgitter AG / First Quarter of 2011

Successful start to the financial year 2011

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3-month report

Subtitle: Successful start to the financial year 2011

Salzgitter (euro adhoc) - Backed by the continued favorable economic
environment and the resulting recovery in the business activities of
almost all subsidiaries, the Salzgitter Group was off to a good start
to the new financial year in the first quarter of 2011.

The Group's external sales climbed by almost one fifth to EUR 2,307.6
million (first quarter of 2010: EUR 1,924.8 million). Salzgitter AG
generated a pleasing pre-tax profit of EUR 56.3 million in the first
quarter (first quarter of 2010: -EUR 17.1 million). This result
includes a contribution of EUR 29.0 million made by the stake in
Aurubis AG included at equity (first quarter of 2010: EUR 11.2
million). Profit after tax stood at EUR 44.0 million (first quarter
of 2010: -EUR 13.3 million). With an equity ratio of 43 % and a net
cash position of EUR 1.1 billion, the Group continues to operate from
an exceptionally sound financial basis.

External sales by Division (EUR million):

Q1 2011 (Q1 2010)
Steel 698.4 (516.1)
Trading 782.3 (657.7)
Tubes 445.2 (449.4)
Services 119.5 (88.0)
Technology 242.9 (199.8)
Other 19.2 (13.8)
Group 2,307.6 (1,924.8)

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

Q1 2011 (Q1 2010)
Steel 9.4 (-31.0)
Trading 23.3 (4.0)
Tubes 14.7 (2.6)
Services 5.0 (5.1)
Technology -8.3 (-13.3)
Other/Cons. 12.2 (15.5)
Group 56.3 (-17.1)

As before, the accuracy of our planning is considerably restricted by
shorter contractual cycles and greater price volatility on the
procurement and on the sales side. Based on the information currently
available in the divisions, we believe that it should be possible for
the Salzgitter Group to achieve a pre-tax profit of up to EUR 150
million in the financial year 2011.

As in recent years, we make special reference to the fact that
opportunities and risks from currently unforeseeable trends in
selling prices, input materials and capacity utilization
developments, as well as changes in the currency parity, may still
affect performance considerably over the course of the financial year
2011. 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, assuming the sale of around 8 million tons of steel products by
the Steel, Trading and Tubes divisions over the remainder of the
financial year, an average EUR 25 contraction in the margin per ton
is sufficient to cause a variation in the annual result of more than
EUR 200 million.

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) 5341-21-1852
E-Mail: kleinermann.b@salzgitter-ag.de

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