EANS-News: The Salzgitter Group reports sound profit trend in the current financial year

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9-month report

Salzgitter (euro adhoc) - The Salzgitter Group achieved a
considerable increase in its profit in the third quarter of 2011
compared with the year-earlier period. Its presentable performance in
the first nine months of the current financial year was due first and
foremost to the generally favorable economic environment for rolled
steel and tubes products.

The Group's external sales rose 18 % to EUR 7,331.4 million (9 Months
2010: EUR 6,192.6 million). This development was mainly borne by the
brisk activities of the Steel, Trading and Technology divisions. As a
result, earnings before tax climbed steeply to EUR 169.1 million (9
Months 2010: EUR 5.7 million). This figure comprises EUR 52.9 million
in profit contribution from the participation in Aurubis AG which is
included at equity (9 Months 2010: EUR 31.8 million). The result
after tax stood at EUR 114.7 million (9 Months 2010: EUR 3.9
million). Return on capital employed (ROCE) came to 5.8 % (9 Months
2010: 0.8 %).

External sales by Division (EUR million):

9M 2011 (9M 2010)
Steel 2,071.4 (1,672.4)
Trading 2,810.6 (2,230.5)
Tubes 1,299.6 (1,304.0)
Services 355.7 (301.7)
Technology 728.4 (645.5)
Other 65.6 (38.5)
Group 7,331.4 (4,034.2)

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

9M 2011 (9M 2010)
Steel 35.9 (-67.6)
Trading 53.3 (63.9)
Tubes 59.3 (17.7)
Services 14.6 (18.8)
Technology -36.5 (-21.0)
Other/Consolidation 42.5 (-6.1)
Group 169.1 (5.7)

The euro crisis has resulted in greater macroeconomic risks since the summer.
Demand in many product segments is nonetheless comfortable, albeit at a more
modest level. Taking ac-count of new orders placed in recent weeks, which give
rise to cautious optimism, we affirm our forecast for the Salzgitter Group's
earnings before tax of around EUR 200 million in the financial year 2011.

As in previous years, we make special reference to the fact that
opportunities and risks from unforeseeable trends in selling prices,
input materials and capacity utilization developments, as well as
changes in currency parities and metal prices, may still affect
performance considerably in the financial year 2011. Additional
positive or negative effects may also emanate from structural or
methodological changes, which specifically includes valuation methods
de-fined under IFRS standards and their treatment. The resulting
fluctuations in consolidated earnings before tax maybe within a
considerable range, either to the positive or negative.

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:
Markus Heidler
+49 (0) 5341/21-6105
heidler.m@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