Salzgitter AG (SZGPF.PK,SZGPY.PK), a German steel manufacturer, on Monday reported net loss for the first nine months of the financial year 2024 of 197.7 million euros, compared to prior year's profit of 193.7 million euros, in a tough market environment.
Basic loss per share was 3.74 euros, compared to profit of 3.51 euros a year ago. Loss before taxes was 141.2 million euros, while prior year's profit was 254.3 million euros.
The company noted that a major driver behind the pre-tax loss consisted of impairment totaling 150 million euros in the Steel Processing Business Unit.
EBITDA for the period plunged to 320.6 million euros from 576.0 million euros last year.
Salzgitter Group's external sales dropped to 7.7 billion euros from prior year's 8.4 billion euros as the prices of most rolled steel products were trending down.
Looking ahead, for fiscal 2024, Salzgitter maintained its outlook, which was updated on October 22.
The company projects pre-tax loss for the year to be between 275 million euros and 325 million euros, EBITDA in a range of 275 million euros to 325 million euros and sales to be between 9.5 billion euros and 10 billion euros.
Gunnar Groebler, Salzgitter AG's Chief Executive Officer, said, "The first nine months of the financial year 2024 proved very challenging not only for us but also for Europe's entire steel industry. A weak economic environment and energy prices running at a persistently high level burdened profitability. Right up to today, there are still no signs of an imminent and sustainable recovery."
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