Status: 03/21/2022 10:00 a.m
Thanks to rising raw material prices, Salzgitter returned to profitability last year. However, the Ukraine war and high energy costs make the forecast for 2022 shaky.
Rising raw material prices and the stake in the Aurubis copper group have given the steel manufacturer Salzgitter a significantly better financial year.
With 9.8 billion euros, Salzgitter had a turnover of 38 percent more than in 2020. The bottom line was a profit of 586 million euros. The Lower Saxony steel group had previously made losses for two years, which was mainly due to the economic slowdown in the wake of the corona pandemic. For the 2021 financial year, shareholders are now to receive a dividend of 75 cents per share. This is the highest payout since 2008.
Risks from the Ukraine war
In view of the war in Ukraine, the group warned of the consequences for business development. Russia’s attack on the neighboring country and its consequences could lead to an abrupt slowdown in economic recovery. This is accompanied by the risk of a further increase in the already very high energy costs. “Therefore, there are currently hardly any quantifiable forecast risks,” explained the Executive Board.
So far, however, the company, which is listed on the SDAX, is sticking to its business outlook. At the beginning of February, Salzgitter announced a pre-tax profit of 600 to 750 million euros for this year. Sales are expected to increase to almost eleven billion euros. Even then, Salzgitter had declared that the high energy costs were a burden on the balance sheet.