EANS-News: Salzgitter AG / First Half of 2011: Positive trend holds steady in the second quarter, delivering an increase in profit

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6-month report

Salzgitter (euro adhoc) - The business activities of the Salzgitter
Group developed well overall in the first half of 2011, benefiting
from the favourable economic environment and the consistent
implementation of measures to improve profit and streamline
operations.

All divisions contributed to raising consolidated external sales by
18 % to EUR 4,773.5 million (first half of 2010: EUR 4,034.2
million), especially Steel and Trading. The pre-tax profit achieved
was again presentable at EUR 130.0 million (first half of 2010: EUR
-5.1 million). This result includes a contribution of EUR 46.5
million from the stake in Aurubis AG, a company included at equity
(first half of 2010: EUR 22.0 million). Profit after tax came to EUR
93.7 million (first half of 2010: EUR -3.5 million). Following the
now virtual completion of the extensive investment program, the
financial basis of the Group - with an equity ratio of 44 % and a net
cash position of EUR 951 million - is exceptionally sound.

External sales by Division (EUR million):

H1 2011 (H1 2010)
Steel 1,367.0 (1,081.6)
Trading 1,737.3 (1,409.2)
Tubes 903.2 (892.0)
Services 238.7 (195.3)
Technology 485.7 (429.7)
Other 41.8 (26.4)
Group 4,773.5 (4,034.2)

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

H1 2011 (H1 2010)
Steel 30.4 (-76.2)
Trading 38.2 (43.4)
Tubes 46.7 (13.1)
Services 8.3 (11.4)
Technology -17.7 (-15.7)
Other/Consolidation 24.1 (18.9)
Group 130.0 (-5.1)

The short contractual cycle, the persistently high volatility of
procurement and selling prices and the uncertainty surrounding
economic framework conditions continue to hamper planning accuracy,
both in the individual divisions and at the level of the entire
Group. Against the backdrop of the acceptable constitution in the
flat steel and plate markets, coupled with the turnaround achieved in
the precision tubes segment, we anticipate that, from today's
standpoint, the pre-tax profit of the Salzgitter Group will come to
around EUR 200 million in the financial year 2011 as a whole.

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, given the sale of around 6 million tons of steel products by
the Steel, Trading and Tubes divisions in the second half 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 150 million.

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: regulated dealing/prime standard: Frankfurt, free trade: Berlin,
Hamburg, Stuttgart, Düsseldorf, Hannover, München
language: English