Salzgitter AG
OTC:SZGPF
Salzgitter AG
Salzgitter AG engages in the manufacture of steel and technology products. The company is headquartered in Salzgitter, Niedersachsen and currently employs 22,356 full-time employees. The company went IPO on 2008-02-25. The firm operates through five segments: The Strip Steel segment is composed of the operating companies Salzgitter Flachstahl GmbH, Salzgitter Bauelemente GmbH, Salzgitter Europlatinen GmbH and Salzgitter Mannesmann Stahlservice GmbH and produces strip steel in a wide variety of metallurgic compositions and dimensions. The Plate/Section Steel segment includes Ilsenburger Grobblech GmbH, Salzgitter Mannesmann Grobblech, Peiner Traeger GmbH and HSP Hoesch Spundwand und Profil GmbH and provides various pig iron, steel and steel products. The Mannesmann segment provides steel tubes and pipes and operates through Mannesmannroehren-Werke GmbH. The Trading segment is engaged in trading steel products through Salzgitter Mannesmann Handel GmbH and Universal Eisen und Stahl GmbH. The Technology segment provides products and services for manufacturers of machinery and plants for the filling and packaging of beverages.
Salzgitter AG engages in the manufacture of steel and technology products. The company is headquartered in Salzgitter, Niedersachsen and currently employs 22,356 full-time employees. The company went IPO on 2008-02-25. The firm operates through five segments: The Strip Steel segment is composed of the operating companies Salzgitter Flachstahl GmbH, Salzgitter Bauelemente GmbH, Salzgitter Europlatinen GmbH and Salzgitter Mannesmann Stahlservice GmbH and produces strip steel in a wide variety of metallurgic compositions and dimensions. The Plate/Section Steel segment includes Ilsenburger Grobblech GmbH, Salzgitter Mannesmann Grobblech, Peiner Traeger GmbH and HSP Hoesch Spundwand und Profil GmbH and provides various pig iron, steel and steel products. The Mannesmann segment provides steel tubes and pipes and operates through Mannesmannroehren-Werke GmbH. The Trading segment is engaged in trading steel products through Salzgitter Mannesmann Handel GmbH and Universal Eisen und Stahl GmbH. The Technology segment provides products and services for manufacturers of machinery and plants for the filling and packaging of beverages.
Sales Decline: Q1 sales were down year-on-year, mainly due to the divestment of Mannesmann Stainless Tubes, lower steel prices, and reduced trading volumes.
Breakeven Earnings: Adjusted pre-tax earnings were roughly at breakeven, impacted by negative derivatives valuation and a risk provision totaling EUR 32 million.
Cash Flow Improvement: Gross cash flow improved by about EUR 100 million versus last year, and cash flow from investing was nearly balanced thanks to EUR 155 million in SALCOS public funding.
Net Debt Guidance: Management reaffirmed year-end net debt guidance of minus EUR 1.5 billion to minus EUR 2 billion, with confidence toward the lower (less negative) end.
Outlook Confirmed: Full-year sales and earnings outlook remains unchanged, with potential upside later in 2025 if steel prices hold or rise further.
Volume Drivers: Strong Q1 volumes were attributed to pre-buying ahead of tariffs rather than underlying demand strength.
Maintenance Impact: Planned maintenance on blast furnace C and other aggregates will reduce output and EBITDA in Q2, but revenue impact is expected to be limited.
Technology Division Strength: The Technology segment is on track for another record year, with stable order books and no major pricing pressure.
