Net loss 18.6 mln eur vs 160.2 mln profit (Il Sole 24 Ore Radiocor) - Berlin, 12 Aug - German steelmaker Salzgitter said its first half sales fell to 5.24 billion euros from 5.84 billion due to a decline in prices of most rolled steel products and EBITDA dropped to 233.6 million euros from 429.3 million reflecting lower selling prices.

Pretax earnings slumped to 11.5 million euros from 211 million.

The result includes an after-tax contribution of 70.6 million euros from Aurubis.

The net loss was 18.6 million euros against a profit of 160.2 million the prior year, or a loss per share of 0.40 euros compared with earnings of 2.91 euros.

The return on capital employed (ROCE) stood at 1.9% from 7.9% last year.

'To date, the German economy is showing no signs of a sustainable recovery. The year 2024 is proving to be one of the most challenging for Germany's steel industry in decades.

Aside from the success of our Technology Business Unit - KHS is approaching a record result for the year - 2024 appears to be a lost year from an operating standpoint, while we have achieved a great deal in strategic terms," said chief executive Gunnar Groebler.

The company also said it has initiated short-term measures to stabilize earnings and secure liquidity.

"The Salzgitter Group's result in the first half of 2024 has not been satisfactory, also against the backdrop of the difficult economic environment. Endeavors to counteract this have been assigned top priority. Our motto is therefore: 'We cannot change the direction in which the wind is blowing.

What we can do is to reset our sails in order to achieve our goals," said chief financial officer Birgit Potrafki.

"New capex is being scrutinized and disbursement plans revised for investments already approved. We have also gone through other cost positions and made cuts in various areas.

In the medium term, structural adjustments that are currently at the drafting stage will take effect in the individual business units. We will be reporting on this in due course.'.

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(RADIOCOR) 12-08-24 12:53:30 (0223) 5 NNNN