The Salzgitter steel group recorded a loss in the first six months due to the sluggish economy and shrinking sales.

In view of falling prices for most rolled steel products, external sales fell from January to June to 5.24 billion euros after 5.84 billion in the same period of the previous year, as the Group announced on Monday. The operating result (EBITDA) slumped from 429.3 million euros to 233.6 million euros. Pre-tax profit fell from 211 million euros to 11.5 million euros. The bottom line was a loss of 18.6 million euros, after a profit of 160.2 million euros in the previous year.

"To date, there are no signs of a sustainable recovery in the German economy," emphasized Salzgitter CEO Gunnar Groebler. "The year 2024 will be one of the most challenging for the German steel industry in recent decades." Apart from the successes of the Technology Division, "from an operational perspective, 2024 appears to be a lost year." Groebler made it clear that the change process at Salzgitter will be continued consistently. "Further strategic and structural adjustments will follow."

Salzgitter had already cut its annual forecast at the end of July. Germany's second-largest steel group expects sales of around ten billion euros for 2024. EBITDA should be between 400 and 500 million euros. A balanced pre-tax result is also targeted. The return on capital employed will be "visibly below the previous year's level". Competitor Thyssenkrupp had also lowered its forecast.

(Report by Ralf Banser; Edited by Hans Busemann; If you have any queries, please contact the editorial team at berlin.newsroom@thomsonreuters.com (for politics and the economy) or frankfurt.newsroom@thomsonreuters.com (for companies and markets).)